How to budget for backpacking Southeast Asia

Budget $40 to $50 per day to comfortably cover hostels, street food, local transit, and a few beers or activities. This amount allows for a mix of social events and necessary travel expenses without needing to track every cent.

  1. Set your daily baseline. Calculate $45 per day as your standard burn rate. This covers a dorm bed ($10–$15), three meals ($15), two local beers or coffees ($5), and bus/tuk-tuk transit ($10).
  2. Add a 'movement' buffer. Backpacking involves constant travel. Budget an extra $150 per month specifically for cross-border buses, ferries, or budget flights (AirAsia/VietJet), as these often get overlooked in daily estimates.
  3. Account for 'adventure' costs. Set aside a separate 'activity fund' of $300. This covers major splurges like a Ha Long Bay cruise, PADI scuba certification in Thailand, or Angkor Wat passes, which will blow your daily budget if you try to pay for them out of pocket.
  4. Choose your withdrawal strategy. Use a bank card like Charles Schwab or Revolut that refunds or waives ATM fees. Thai ATMs charge about $7 per withdrawal, so taking out the maximum amount allowed (usually 20,000 THB) saves you significant money over a month.
Is $30 a day possible?
Yes, but it requires staying in the cheapest dorms, eating only street food, avoiding alcohol, and moving locations very infrequently.
Should I carry mostly cash or use cards?
Cash is king. Cards are rarely accepted in local markets or smaller guesthouses, and credit card fees in Southeast Asia often run 3%–5%.