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.
- 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).
- 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.
- 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.
- 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%.