How to plan travel with a friend who has a different budget

Start by being honest about what you can actually spend, then find the overlap where you can both afford to go. You don't need to do everything together—split up for meals or activities that don't match your budgets, and rejoin for the parts you can both enjoy.

Have the money conversation early. Before picking a destination, tell your friend your actual daily budget. Not a range. A number. Say: 'I can spend $80 a day total' or 'My budget is $150.' This is awkward but it's way less awkward than fighting about money three days into the trip.
Map out what your budgets actually cover. Break down your daily budget into categories: accommodation, food, activities, transport. A $60/day budget might be $25 bed, $20 food, $10 activities, $5 transport. A $150/day budget breaks down differently. Write these out so you can see where the real gaps are.
Find destinations that work for both of you. If one person budgets $80/day and another $150/day, choose a destination where both budgets are realistic. Southeast Asia works for both. Western Europe might only work for the person with $150/day. Use numbeo.com or living cost comparison sites to check prices before committing.
Decide what you'll do together and what you'll split. Some things you'll share: accommodation (obvious), some meals, group activities. Other things you won't: solo meals, solo activities, drinks. Talk about this specifically. 'We share the airbnb and breakfast. You eat nicer lunches than me—that's on you. We do the museum together.' This prevents resentment.
Agree on accommodation cost upfront. If you're splitting an apartment or room, decide the total cost and how to split it. If one person wants a $200/night place and the other wants a $80/night place, you need to agree on a number you'll both pay. Usually that means meeting in the middle or the higher-budget person covers the difference.
Use separate payment methods for separate expenses. When your friend buys a $60 dinner and you buy a $20 dinner, don't split it. Pay for your own meal. Track shared costs (transport, accommodation, group meals) separately using a shared note or app like Splitwise. This removes the constant math and awkwardness.
Plan activities by budget tier. List activities you both want to do—those you do together. List activities only one person wants—those you do separately. A $40 cooking class might be worth it for one of you and not the other. That's fine. Plan to meet up after.
Set a daily check-in. Every evening, talk about what you're spending. Not a confrontation—just reality. 'I've spent $45 today, I'm on track.' This keeps surprises away and lets you adjust the next day if someone's running high.

What if one person wants to do something expensive and the other doesn't?: One of you does it alone. You don't need to do everything together. If your friend wants a $200 helicopter tour and you don't, they go. You do something else that day for $20 or stay in the hotel. You meet up for dinner. This is actually the key to making different budgets work—accepting that you'll have separate experiences.
Should the higher-budget person subsidize the lower-budget person?: No. Each person pays for what they choose. If you want a nicer meal, you pay the difference. If you want to skip an activity to save money, that's your choice and your savings. Don't expect your friend to cover you. If they offer to, that's their choice—but don't ask.
How do we handle group meals if we have different budgets?: Option 1: Eat separately. You grab street food for $5, they eat at a restaurant for $25. No split needed. Option 2: Go to a restaurant where both budgets work—a casual place where a meal is $12-18. Order what you want, pay for what you ordered. Don't split the bill evenly unless you ordered similar amounts.
What if we disagree on accommodation?
Is it better to travel with someone on the same budget?: Yes, it's easier. But different budgets can work if both people are honest upfront and willing to do some things separately. The key is talking about money before you book anything, not after you're already in an argument in a foreign country.
How do I tell my friend I can't afford their plan?: Be direct. 'I looked at the numbers and I can't afford $150/day. My budget is $80/day. That means cheaper accommodation and fewer meals out. I'd love to travel with you if we find a destination that works for both budgets, but this destination doesn't work for me.' Most friends will respect this more than pretending you can afford something you can't.