Hey, fellow travelers! Hey there, it’s your favorite traveler here. I want to talk about something that’s very important to me: how to make your big travel dreams come true without spending a lot of money. It can feel like a dream come true to think about going on a cheap vacation in a world where everything seems to be getting more expensive. But what if I told you that with some smart planning and the right places to go, you could go on an amazing trip that will give you a lot of experiences without costing you a lot of money? This is what “budget travel” is all about: being smart with your money so you can have the most fun on your trips. It’s not just about being cheap.
The travel scene is always changing, and a place that used to be a secret gem can quickly become a tourist hotspot with prices that go through the roof. That’s why I’ve spent a lot of time looking into, checking out, and even going back to some of my favorite places to make this year’s list of the top 10 cheap vacation spots. These are places where your dollar, pound, or euro goes a long way, letting you fully experience the culture, enjoy amazing food, and make memories that will last a lifetime.
This isn’t just a list; it’s a full guide to traveling on a budget. We’re going to go into great detail about why each place is worth visiting, including how to set a realistic daily budget, find free and almost-free things to do, and share insider tips that will help you save money on vacation in ways you never thought possible. This list has a place for every kind of traveler, from the sunny beaches of Southeast Asia to the old cities of Eastern Europe and the colorful landscapes of Latin America.
So, get a cup of coffee, get comfy, and let’s set out on a journey to find the best affordable vacations you can book this year. Your dream trip is closer and more possible than you think.
**H2: The Rise of Smart Travel: Why Budget-Friendly is the New Luxury
Before we get into our top 10, let’s change how we think about “budget travel.” For too long, it has been linked to giving up quality, staying in bad places, and missing out on amazing experiences. But today’s budget traveler is a smart planner and explorer who knows that the best part of traveling isn’t spending a lot of money but making real connections and having real experiences.
The new luxury in travel is freedom: the freedom to travel more often, stay longer, and not have to worry about money when you get back. This is why affordable holidays are so appealing. It’s about making good use of your money by spending it on things that are important to you, like a world-class cooking class, a scuba diving trip, or a once-in-a-lifetime hike, and saving money on things that aren’t, like overpriced tourist-trap restaurants or useless souvenirs.
This guide is meant to help you become a smart traveler. Want to learn how to see the world without spending a lot of money? Let’s get going.
H2: Our Top 10 Budget-Friendly Vacation Spots for This Year
This is it, the moment you’ve been waiting for! After a lot of research and a deep dive into the world of cheap travel, here are my top 10 picks for the best and most affordable places to go on vacation this year.
1. Vietnam: A Symphony of Travel, Food, and Culture
Vietnam is always at the top of lists of places to go on a budget. This beautiful Southeast Asian country has a lot of natural beauty, interesting history, and delicious food that will make you want to eat more. And it’s much cheaper than its more developed neighbors. Vietnam is a country with a lot of different things to see and do. The busy streets of Hanoi, the peaceful rice fields of Sapa, and the beautiful coastline of the south are all great examples.
- Why it’s a good choice for your wallet: The value for money here is just amazing. You can enjoy a bowl of pho, the country’s national dish, for just over a dollar. You can get a bed in a clean, friendly hostel for as little as $5 to $7 a night. Private rooms in guesthouses are usually less than $20 a night. Getting around the country is very cheap, thanks to the famous “xe om” (motorbike taxis) and long-distance buses. This makes it easy to see all of it. If you want to learn more about how cheap Vietnam is, read this detailed budget breakdown from Goats on the Road.
- **Daily Budget That Makes Sense:**
- Backpacker: $25–35 USD
- Mid-Range Traveler: $50–70 USD
- **Things to do for free or cheap:
- Wander the Old Quarter of Hanoi: Get lost in the winding streets of the capital’s historic center, which will overload your senses in the best way possible.
- Hike in Sapa: You can hike through the beautiful rice terraces and visit local villages on your own, but guided treks cost money.
- Relax on the beaches of Da Nang or Mui Ne: Vietnam has a lot of beautiful, free beaches along its coast.
- Visit Hoi An’s Ancient Town: This UNESCO World Heritage Site is like a living museum. Some temples charge admission, but just walking through the streets lit by lanterns is an experience in itself.
- Insider Tip: If you want to travel like a local and save money, think about taking the overnight trains. They not only save you the cost of a night’s stay, but they also give you a fascinating look at life in Vietnam.
Interlink: * Are you thinking about going on an adventure in Southeast Asia that involves more than one country? Take a look at our guide to backpacking Southeast Asia on a budget.
2. Portugal: A surprisingly cheap and sunny gem in Europe
Want to go to Europe but scared of how much it will cost in Paris or Rome? Portugal is the place to go. This lively country on the Iberian Peninsula has everything you could want from a European vacation: beautiful beaches, historic cities, great food, and world-class wine. And the prices will surprise you in a good way. Portugal is full of great places to go on vacation that don’t cost a lot of money. The charming, tram-filled streets of Lisbon, the sunny beaches of the Algarve, and the beautiful vineyards of the Douro Valley are just a few examples.
- Why it’s a good deal: Portugal is a great deal compared to other Western European countries. You can get a tasty “pastel de nata” (custard tart) for about €1, and a filling “prato do dia” (dish of the day) at a local “tasca” will almost never cost more than €10. The cost of lodging is also reasonable, with great hostels and guesthouses available for low prices.
- Realistic Daily Budget:
- Backpacker: €40–60 EUR
- Mid-Range Traveler: €80–120 EUR
- **Things to do for free or cheap:
- Explore Lisbon’s Alfama District: Walk through the winding, cobblestone streets of Lisbon’s oldest neighborhood.
- Take it easy on the Algarve’s beaches: You can get to many of the Algarve’s famous beaches for free.
- Go on a free walking tour: Many big cities, like Lisbon and Porto, have free walking tours where you can give the guide a tip based on how much you thought the tour was worth.
- Go to the Jardins do Palácio de Cristal in Porto: These lovely gardens are free to enter and have great views of the Douro River.
- Insider Tip: If you want to save money on vacation, eat lunch as your main meal. The “prato do dia” is a great and cheap way to try traditional Portuguese food. For dinner, why not go to a nearby market and get some fresh fruits and vegetables, cheese, and a bottle of wine? Then have a picnic.
Backlink: Nomadic Matt has a great travel guide to Portugal that goes into more detail about how to travel through Portugal on a budget.
3. Mexico: A Colorful Mix of Food, Culture, and History
Mexico is a country that really does have it all. Mexico is a feast for the senses. It has beautiful white-sand beaches, ancient Aztec and Mayan ruins, colorful cities full of art, and delicious food that UNESCO has named an Intangible Cultural Heritage of Humanity. And the best part is? It is still one of the easiest and cheapest places for people from North America and other places to go on vacation.
- Why it’s a good choice for your budget: Mexico is a great place to go because it’s cheap. You can get real street food, like tacos and tamales, for just a few dollars. In many Western countries, a domestic beer, like a refreshing Corona or a flavorful Modelo, will often cost less than a soda. Long-distance buses are a cheap, safe, and comfortable way to get from one city to another.
- Daily Budget That Makes Sense:
- Backpacker: $30–50 USD
- Mid-Range Traveler: $60–90 USD
- **Things to do for free or cheap:
- Explore the Zócalo in Mexico City: The center of the capital is a lively public square with old buildings all around it.
- Relax on the beaches of Puerto Escondido: This laid-back surf town on the Pacific coast has beautiful beaches that are much less crowded and expensive than those in Cancun.
- Visit local markets: Walk through a busy “mercado” to get a feel for the local culture.
- Explore Oaxaca’s street art scene: This city has a lot of culture and is home to some amazing street art.
- Insider Tip: Cancun and Tulum’s all-inclusive resorts are popular, but if you want a more authentic and low-cost travel experience, check out the smaller towns and cities in the country’s interior, like Guanajuato or San Cristóbal de las Casas.
4. Colombia: A Strong Country with a Lively Heart
Colombia has moved on from its troubled past and is now one of the most exciting and friendly places to visit in South America. Colombia is a country that will steal your heart. From the salsa-filled nightlife in Cali to the lush coffee farms in the Zona Cafetera, the colorful street art in Medellín, and the colonial charm of Cartagena, it has it all. Also, it’s a very cheap place to go on vacation.
- Why it’s a good choice for your budget: Colombia is a great place to travel on a budget. You can get a tasty and filling “menu del día” (set lunch) for just a few dollars. Flights within the country are surprisingly cheap, which makes it easy to get around to different parts of the country. There are also a lot of affordable places to stay, from trendy hostels to boutique hotels.
- Daily Budget That Makes Sense:
- Backpacker: $30 to $45 USD
- Mid-Range Traveler: $50–80 USD
- **Things to do for free or cheap:
- Go on a free walking tour in Medellín: Find out how the city changed from being one of the most dangerous places in the world to a center of innovation.
- Hike in the Cocora Valley: This beautiful area is a hiker’s dream because it has the tallest palm trees in the world.
- Visit the Walled City of Cartagena: This UNESCO World Heritage Site is a must-see because of its colorful colonial buildings and charming plazas.
- Learn to salsa in Cali: Many bars and dance schools offer free or very cheap beginner salsa classes.
- Insider Tip: Staying at a coffee “finca” (farm) in the Zona Cafetera is a great way to have a unique and memorable experience. Many of them have cheap places to stay and tours where you can learn about how coffee is made from the bean to the cup.
Interlink: * Are you ready for an adventure in South America? Take a look at our Ultimate South America Backpacking Guide.
5. Romania: A Place with Medieval Towns, Grand Castles, and Mythical Stories
In Romania, you can step into a real-life fairy tale. The country is home to medieval towns with cobblestone streets, rolling hills, and the dramatic Carpathian Mountains, which are home to beautiful castles. Many people come to Transylvania because of the story of Dracula, but they quickly learn that the country has a lot of history, folklore, and natural beauty. Romania is one of Europe’s most underrated and inexpensive places to go on vacation.
- Why it’s a good choice for your budget: Romania gives you a taste of Europe at a much lower price. You can get a filling and tasty meal for a few euros, like “sarmale” (cabbage rolls) or “mămăligă” (polenta). Traveling by train between cities is beautiful and cheap, and you can find charming guesthouses and pensions for very low prices.
- Realistic Daily Budget:
- Backpacker: €30–50 EUR
- Mid-Range Traveler: €60–90 EUR
- **Things to do for free or cheap:
- Visit the medieval towns of Sighișoara and Brașov: These well-preserved towns in Transylvania are a great place to walk around.
- Hiking in the Carpathian Mountains: There are a lot of hiking trails in the mountains that have amazing views.
- Go to the painted monasteries of Bucovina. Some charge admission, but seeing the beautiful frescoes on the outside is a one-of-a-kind experience.
- Explore the lively capital of Bucharest: Bucharest is known as the “Paris of the East” because it has beautiful buildings, nice parks, and a lively atmosphere.
- Insider Tip: If you want to learn more about the local culture, you might want to stay with a family in the rural area of Maramureș, which is known for its traditional wooden churches and friendly people. This is a great way to see what real Romanian life is like and have a really cheap trip.
6. The Philippines: An Archipelago with Beautiful Beaches and Amazing Underwater Life
The Philippines should be at the top of your list of places to visit on a budget if you want to see beautiful white-sand beaches, clear turquoise waters, and great diving and snorkeling. This Southeast Asian archipelago has more than 7,000 islands and is a paradise for beach lovers and thrill seekers. Prices have gone up in popular places like Boracay, but there are many other islands where you can find your own piece of paradise for a low price.
- Why it’s a good choice for your budget: The Philippines has great prices, especially on food and lodging. You can rent a bungalow on the beach for as little as $20–30 a night, and you can get a tasty meal of fresh grilled fish and rice for just a few dollars. Ferries and domestic flights between the islands are also very cheap.
- Realistic Daily Budget:
- Backpacker: $30 to $45 USD
- Mid-Range Traveler: $50–80 USD
- **Things to do for free or for cheap:
- Island hopping in El Nido or Coron: These parts of Palawan are known for their beautiful lagoons, secret beaches, and limestone karsts.
- In Moalboal, Cebu, you can snorkel with sea turtles. The sardine run here is famous all over the world.
- Visit the Chocolate Hills in Bohol: these strange rock formations are a sight to see.
- Take it easy on the island of Siquijor: it’s known for its magical healers and beautiful, quiet beaches.
- Insider Tip: To really save money on vacation and get away from the crowds, go to islands that aren’t as popular with tourists. If you want a more real and cheap experience, think about visiting the islands of Siargao (a surfer’s paradise), Romblon, or Camiguin.
7. Bolivia: A Place with Strange Landscapes and a Strong Native Culture
Bolivia is the best place for adventurous travelers who want to see landscapes that are truly one-of-a-kind and breathtaking. Bolivia has the Salar de Uyuni salt flats, which look like they belong in another world, the beautiful Andes mountains, and a rich and vibrant indigenous culture. It’s a travel experience that is both deep and very cheap. There is no doubt that it is one of the most affordable places to go on vacation in South America.
- Why it’s a good choice for your budget: Bolivia is one of the cheapest places to travel in South America. A multi-day tour of the Salar de Uyuni that includes transportation, lodging, and meals is a great deal. You can get a big lunch for just a few dollars, and long-distance bus travel is very cheap.
- **Daily Budget That Makes Sense:**
- Backpacker: $20 to $30 US dollars
- Mid-Range Traveler: $40–60 USD
- **Things to do for free or cheap:
- Visit the Witches’ Market in La Paz: it’s a fascinating look at traditional Aymara beliefs and ways of life.
- Hike on Isla del Sol in Lake Titicaca: Inca legends say this is where the sun was born.
- Walk around Sucre’s colonial streets: The constitutional capital of Bolivia is a beautiful and calm city.
- Be amazed by the strange landscapes of the Salar de Uyuni: a multi-day tour is the best way to see this natural wonder.
- Insider Tip: Because Bolivia is so high up, it’s important to get used to the altitude. For the first few days, take it easy and drink a lot of coca tea, which is a local cure for altitude sickness. This is a very important tip for a safe and fun low-cost trip.
8. Georgia: A Secret Treasure at the Meeting Point of Europe and Asia
Georgia is a country that is still not very well known to many travelers. It is located at the crossroads of Europe and Asia. People who make the trip, on the other hand, are rewarded with beautiful mountain views, old cave monasteries, a unique and tasty cuisine, and a culture of hospitality that is second to none. Georgia is a real hidden gem and a great place to go on an affordable holiday.
- Why it’s a good choice for your budget: Georgia is very cheap. You can get a tasty “khachapuri” (bread filled with cheese) for just a few dollars, and a glass of the country’s famous wine is also very cheap. Guesthouses, which are often run by local families, are a cheap way to stay somewhere that feels like home.
- Realistic Daily Budget:
Backpacker: €25 to €40
- Mid-Range Traveler: €50–80 EUR
- **Activities that are free or cheap:**
- Visit the lovely old town of Tbilisi: walk along its cobblestone streets, admire the unique buildings, and take in the atmosphere of the city’s famous sulfur baths.
- Hike in the Caucasus Mountains: The Svaneti area has some of the best hiking in Europe.
- Go to the old cave city of Vardzia. This huge cave monastery shows how rich Georgia’s history is.
- Visit the Kakheti region for wine tasting: Georgia is one of the oldest wine-producing areas in the world, and many wineries offer free or very cheap tastings.
- Tip from an insider: Learn a few simple Georgian words, like “gamarjoba” (hello) and “madloba” (thank you). The locals will appreciate the effort, and it will lead to more real interactions.
Backlink: If you’re interested in Georgia’s growing travel scene, this article from The Guardian is a great read: Georgia: Europe’s New Travel Star.
9. Indonesia (not just Bali): A World of Islands Waiting to Be Discovered
Bali is a beautiful and popular place to visit, but it is only one of Indonesia’s more than 17,000 islands. For travelers who want to have a more exciting and affordable trip, going beyond Bali opens up a world of options. Indonesia is a world of different and cheap adventures, from the volcanic landscapes of Java to the beautiful coral reefs of the Gili Islands and the unique culture of Flores.
- Why it’s a good choice for your wallet: Indonesia is very cheap outside of the main tourist areas in Bali. You can get a tasty meal of “nasi goreng” (fried rice) or “mie goreng” (fried noodles) from a small restaurant called a “warung” for only a dollar or two. Domestic flights and ferries are the country’s lifeblood, and they are very cheap.
- Daily Budget That Makes Sense:
- Backpacker: $25 to $40 US
- Mid-Range Traveler: $50–70 USD
- **Things to do for free or for a low cost:
- Hike to the crater of Mount Bromo in Java: Watching the sun rise over this strange landscape is something you’ll never forget.
- Snorkel or dive in the Gili Islands: These three small islands off the coast of Lombok are a paradise for people who love to be underwater.
- Visit the old temples of Borobudur and Prambanan in Java. These UNESCO World Heritage sites are amazing examples of architecture.
- Explore Flores’ unique culture and beautiful beaches: This island is the way to get to Komodo National Park, but it’s also a beautiful place to visit on its own.
- Insider Tip: Learn how to bargain, especially in markets. It’s a part of the culture there and is expected. Be polite and smile all the time.
10. Albania: The Mediterranean’s Hidden Gem
Think of the beautiful beaches in Greece or Italy, but with fewer people and lower prices. Welcome to Albania, the Mediterranean’s hidden gem. Albania is going to be the next big travel destination in Europe because it has a stunning coastline called the Albanian Riviera, rugged mountains that are great for hiking, and a long history that includes ruins from ancient Greece and Rome. It is still an amazing place to travel on a budget.
- Why it’s a good choice for your budget: Albania is one of the least expensive countries in Europe. You can have a dinner of fresh seafood with a view of the Ionian Sea for less than $15. You can often get a beer for just a dollar. There are also very cheap places to stay, like beachside guesthouses and city apartments.
- Daily Budget That Makes Sense:
Backpacker: €25 to €40
- Mid-Range Traveler: €50–80 EUR
- **Activities that are free or cheap:**
- Take it easy on the beaches of the Albanian Riviera: the coastline is beautiful, with both busy beaches like Saranda and Ksamil and quieter coves.
- Visit the UNESCO World Heritage site of Butrint. This old city has a long history that includes Greek, Roman, Byzantine, and Venetian rule.
- Hike in the Albanian Alps: The Theth to Valbona hike is one of the most beautiful in the Balkans.
- Explore the unique Ottoman architecture of Gjirokastër and Berat: these two “museum cities” on the UNESCO list are a lot of fun to explore.
- Insider Tip: Don’t be afraid to go inland, even though the coastline is beautiful. Many tourists miss the country’s interior, which is full of amazing natural beauty and a rich and unique culture.
Useful Tips for Saving Money for Your Next Vacation in Your Daily Life
You might be wondering how to make your travel fund grow now that you have a list of amazing and cheap vacations. The most important thing is to make small, regular changes to your daily life. Here are some useful tips to help you save money on vacation even before you book your flights:
- The “Travel Jar” Method: It may sound old-fashioned, but it works. Get a real jar, write the name of your dream place on it, and every day put your spare change in it. It will add up faster than you think.
- Automate Your Savings: Every payday, set up an automatic transfer from your checking account to a high-yield savings account. Even a small amount, like $25 or $50, will grow a lot over time.
- The “30-Day Rule” for Non-Essential Purchases: Before you buy something big that you don’t need, wait 30 days. If you still want it after that time, think about buying it. Most of the time, the urge will go away, and you can use that money to save for your trip.
- Make Your Own Coffee: That $5 latte every day adds up to more than $1,800 a year. Making your own coffee at home is a small change that can save you a lot of money.
- Learn How to Plan Your Meals: Going out to lunch every day is a big waste of money. Take a few hours on the weekend to get your lunches ready for the week. It will save you a lot of money and be better for your health.
- Look Over Your Subscriptions: Do you really need all of those streaming services? Do a subscription audit and cancel any that you don’t use often.
- Use the library: get a library card instead of buying books. A lot of libraries also let you borrow e-books and audiobooks and even stream movies and TV shows for free.
- Host a “No-Spend Weekend”: Give yourself a weekend where you don’t spend any money. Take a walk, have a potluck with friends, or visit the free museums in your area. It’s a great way to change the way you spend money and have fun doing things that don’t cost anything.
If you make these small changes to your daily routine, you’ll find that saving for your next low-cost trip is easier than you think.
The Last Word: Your Adventure Awaits
The world is a big, beautiful place, and everyone should be able to see it, not just the rich. You can go on an amazing trip that will make your life better without breaking the bank if you do some research, plan ahead, and are willing to go off the beaten path. This list of cheap vacation spots is just the start. You can use the ideas behind “budget travel” at any place you go. These include putting experiences ahead of things, looking for real connections, and being a smart and resourceful traveler.
So, what are you waiting for? Choose a place to go, start saving, and get ready for the best trip of your life. The world is ready for you.
