When I planned my 1.5-year journey through Asia, I quickly realized that setting up a budget was essential. Researching flight prices, visa fees for countries like India and Nepal, and estimating daily costs for food and accommodation helped me understand how much money I’d actually need. But how do you go about creating a realistic travel budget? What expenses should you consider? And where can you find reliable information?

This article will guide you through the process of building your own travel budget, divided into two main categories: Pre-departure costs and On-the-road expenses.

Pre-departure costs include things like flights, visas, and travel insurance. These are usually fixed and relatively easy to research ahead of time. Once you’ve gathered the information, you can calculate these costs with confidence.

On-the-road expenses, on the other hand, are more flexible and depend on your travel style. It helps to ask yourself how much you’d like to spend each day, week, or month on key categories like accommodation, food, local transport and activities. With a bit of planning, you can shape a budget that fits your comfort level and travel goals.

Pre-departure costs

Before you start building your travel budget, it’s important to understand what you can realistically afford. Consider how much money you already have set aside, how much you’ll need to save, and whether you’ll have any income while travelling. Don’t forget to factor in any ongoing expenses you’ll still need to cover during your trip. Think of subscriptions, rent or insurance back home. These should all be included in your overall travel budget.

To keep track of everything, I recommend using a spreadsheet. I personally use Excel, but Google Sheets is a great free alternative that allows you to access and update your budget from anywhere.

Keep in mind that your budget should be flexible. During your trip, you might book extra flights, decide to visit a new country (which may require a visa), or take on unexpected activities. Your budget serves as a guideline, it is not a strict rulebook. And it helps you stay on top of your spending.

Here are some common pre-departure expenses to include:

• Flights
• Visas
• Travel insurance
• Vaccinations

Flights

For most travellers, flights are one of the biggest expenses. So finding a good deal can make a big difference to your overall budget. A great starting point is Skyscanner, a powerful search engine that helps you compare flight prices across airlines and booking platforms. The key to scoring cheap flights? Flexibility.

If you’re flexible with your travel dates and even your destination, you’ll have a much better chance of finding lower fares. Flight prices can vary significantly depending on the day of the week, the season, and even time of day. Midweek flights (especially Tuesdays and Wednesdays) tend to be cheaper than weekend departures, and avoiding peak travel seasons or public holidays can also help cut costs.

To explore your options, try using Skyscanner’s ‘Explore Everywhere’ or ‘Explore’ function. Just enter your departure airport and search for the cheapest destinations during your preferred travel period. This is perfect if you’re open to adventure and want to travel on a budget.

Additional tips to find affordable flights

• Search in incognito mode or clear cookies to avoid dynamic price increases based on your browsing history.
• Set up price alerts on Skyscanner or Google Flights to monitor fare changes.
• Compare on multiple platforms, such as Google Flights, Momondo, or Kayak, and don’t forget to check airlines’ own websites for promo deals.

When choosing a flight, also consider the trade-off between price and convenience. Flights with layovers are typically cheaper than direct ones, but they take longer and can be more tiring. On the other hand, direct flights are more convenient and often better for the environment, since they involve fewer take-offs and landings. It all comes down to your priorities. Whether you’re more budget-conscious, time-sensitive or eco-minded.

Visa

Visas can be a significant part of your travel budget, and costs vary widely depending on your destination. Some countries offer free visa-on-arrival options, while others require paid applications in advance. To avoid surprises, always check the official embassy or immigration websites of the countries you plan to visit.

For example:

• India: European citizens can apply for an e-Tourist Visa online. This visa typically allows multiple entries and is valid for up to 90 days per visit. Fees may vary, so it’s essential to consult the official Indian visa website or authorized visa service providers for the most current information.
• Nepal: European travellers can obtain a visa on arrival at Tribhuvan International Airport in Kathmandu. The cost depends on the length of stay: $30 USD for 15 days, $50 USD for 30 days, and $125 USD for 90 days. Make sure your passport is valid for at least six months beyond your entry date and has at least one blank page for the visa stamp.

Tips for Visa planning

• Research early: Visa requirements can change, so check the latest information well before your departure.
• Budget accordingly: Include visa fees in your travel budget, as they can add up, especially if visiting multiple countries.
• Prepare documentation: Some visas require additional documents like passport-sized photos, proof of accommodation or return flight tickets.
• Consider processing times: Apply for visas with enough time to account for processing delays.
• Stay informed: Use reputable sources or official government websites to avoid misinformation.

By planning ahead and staying informed, you can make sure a smoother travel experience without unexpected visa complications.

Insurance

You might wonder if travel insurance is truly necessary. My answer? You absolutely need one.I never travel without it. Whether you’re going on a weekend city break or a long-term backpacking adventure. Travel insurance is essential for protecting yourself from unexpected costs like medical emergencies, trip cancellations, lost luggage or stolen items.

If you take multiple short trips each year, it can be more convenient, and often more affordable, to purchase annual travel insurance. For long-term travel, however, you’ll likely need a specialized policy. In countries like Belgium and the Netherlands, for example, most standard health insurance plans won’t cover you if you’re abroad for more than three months. In that case, additional coverage is required.

For Belgian and Dutch travellers, I highly recommend JoHo Insurances. I personally had good experiences with them. They have a range of plans tailored to different travel purposes. Whether you’re going on a holiday, studying abroad, doing an internship, working internationally or go for adventurous activities like trekking or bungee jumping.

Other well-known travel insurance providers include:

• Allianz Travel
• Travel Guard
• World Nomads

These companies offer international coverage for various nationalities and trip types.

Tips before buying travel insurance

• Compare policies carefully: Each company offers different coverage levels and exclusions.
• Consider your trip type: Are you planning to work, study or do extreme sports? Choose coverage that matches your activities.
• Read the fine print: Understand what is covered, what’s not, and how to make a claim.

Ultimately, the best policy depends on your personal needs, destination and travel style. A bit of research upfront can save you a lot of trouble (and money) later on.

Vaccines

Before travelling, it’s important to consult your doctor or a travel health clinic to find out which vaccinations are recommended or required for your destination. They can advise you based on your medical history, travel plans and current health risks in the countries you plan to visit.

If you prefer to do some research yourself, a good starting point is the World Health Organization (WHO) website. They have up-to-date information on health risks, disease outbreaks and recommended vaccinations for each country.

Vaccination costs can vary depending on your country, the clinic and the specific vaccines required. Be sure to include them in your pre-trip budget. Common travel vaccines include Hepatitis A and B, Typhoid, Yellow Fever and Rabies. But it depends on your destination and activities.

Planning your vaccinations in advance not only protects your health but also helps you avoid last-minute stress or travel delays.

On-the-road-expenses

Once you’ve decided on your destinations, the next step is to estimate your daily expenses. Especially for accommodation, local transport and food. These costs can vary greatly depending on the country and your travel style.

• Accommodation
• Food
• Transport & Tours
• Extra funds
• Other

Accommodation

To get an accurate idea, I recommend reading blog posts and checking online reviews. I find them particularly helpful for practical travel information, cultural insights, estimated costs and inspiration for places to visit.

When it comes to accommodation, I usually book a hotel or hostel that’s located near the sights or neighbourhoods I want to explore. Staying in a central or well-connected area can save both time and money on transport. I personally use Booking.com for nearly all my bookings—it’s user-friendly, offers flexible cancellation options, and keeps all my reservations organized. That said, there are plenty of other great platforms out there, including Hostelworld, Agoda and Airbnb.

If you’re travelling for several months, it’s often easier to stick to one or two booking platforms. This way, you won’t miss messages from hosts, and you can manage all your reservations in one place without getting overwhelmed.

Budget and free accommodation

If you’re travelling on a budget, there are several great ways to cut down on accommodation costs without sacrificing comfort or experience.

One of the most popular options is staying in hostels. Booking a bed in a dormitory room is often the cheapest accommodation available, especially in backpacker-friendly countries. What I love about hostels is not just the affordability but the social atmosphere. They’re a fantastic place to meet other travellers, especially if you’re going solo.

Another option is Couchsurfing, where locals offer a free place to stay. It goes from a spare bed to a spot on the couch. It’s a great way to connect with people and get a local’s perspective on the area, although comfort levels and availability can vary.

You could also consider Workaway, a platform where you volunteer your time in exchange for accommodation and sometimes meals. I once did this at a hostel in Kuching, Borneo, working four hours a day. In return, I got a free place to stay and had the rest of the day to explore. Each host sets different terms, so it’s important to read their listings carefully.

Another creative option is TrustedHousesitters. This platform connects travellers with homeowners who need someone to take care of their pets and house while they’re away. In return, you stay for free. It’s a great choice for animal lovers and for travellers looking for a quieter, home-like setting.

Food

When you’re on the road, you’ll likely find yourself eating out more often than usual. I personally use Google Maps to find restaurants, cafés and street food stalls. I always check the reviews and use the “Save” feature to mark places I want to try. It’s a simple way to stay organized and plan meals around your itinerary. Also ask locals and travellers for tips. You will find the best restaurants and street food stalls this way.

Setting a budget for food isn’t always easy, as it can vary depending on your destination and travel style. It helps to agree with yourself, or your travel companions, on a daily food budget. You can apply the same approach to accommodation. Ask yourself: What can I realistically spend per day on food and accommodation combined?

Naturally, your approach will differ based on the type of trip. If you’re taking a two-week holiday, you might splurge and eat out three times a day. But for a longer trip, especially one that lasts several months, having a clear estimate is essential.

During my 1.5-year trip around Asia, I set a daily budget of €12 for food and €13 for accommodation. This was perfectly manageable in most parts of Asia, where meals and accommodations can be very affordable. But in Europe, that same budget requires a lot more planning and flexibility.

Tip: Buying groceries and cooking your own meals (when possible) is a great way to stay within budget, especially in higher-cost countries.

Transport & Tours

Unlike food or accommodation, I’ve never set a daily budget for transport or occasional tours. These costs tend to vary depending on where you are and what you decide to do. In general, the cheapest way to explore is to go independently, either on your own or with other travellers you’ve met along the way. Group tours can be expensive, often crowded, and usually follow a tight schedule. But in some cases, they’re the only option you have.

Personally, I’m not a big fan of organized tours, but when I do join one, I always choose a local operator. I avoid booking through large international tour platforms, as they often take a hefty commission and don’t directly support local communities. The best way to find good tours is by asking for recommendations at your hostel or hotel, checking online reviews, or talking to other travellers.

For getting around, most countries have affordable options like buses, trains, metro systems, or ride-hailing apps. Always make sure taxis are legitimate because scams are common, especially at international airports. In India, for example, I always use Uber or Ola (India’s version of Uber) for safety, fair pricing and convenience.

Booking tip in Asia: Book your train and bus tickets in Asia via 12Go.

While you don’t have to plan every local trip in advance, it’s wise to research transport options and stay flexible. Over time, you’ll get a feel for how much you’re spending and where you can save.

Extra funds

When creating your travel budget, don’t forget to set aside extra money for emergencies. You never know when something might go wrong. You can get sick, loose something valuable or need to return home unexpectedly. It’s important to be realistic about these possibilities and plan for them in advance.

For example, I’ve had two medical emergencies while travelling. The first was in India, where I caught typhoid. Even though I had travel insurance, I had to pay the doctor and medication upfront. The second time was in Thailand, where I ended up in a private hospital with a €650 bill. I had to cover the costs first and send the receipts to my insurer afterwards.

That’s why I keep a separate savings account I don’t touch, reserved only for emergencies. I made an agreement with myself not to use that money unless absolutely necessary. It gives me peace of mind. When I needed urgent medical help, I wasn’t stressed about the cost. And when that emergency fund starts running low, I know it’s time to reassess my trip or head home.

So whether it’s a few hundred euros tucked away or a full emergency fund, make sure you have some financial backup. It’s a small step that can make a big difference when the unexpected happens.

Other expenses

Don’t forget about the extra expenses that come with travelling. Think of souvenirs, going out for drinks, yoga classes or getting a local SIM card. These things may seem small, but they add up over time. Think about what experiences matter most to you. For instance, when I was in New Zealand in 2011, I spontaneously joined other travellers for a skydive. It was fun, unforgettable and quite expensive. It wasn’t something I had budgeted for, but I was glad I had a little flexibility.

When planning your trip, ask yourself:

• How much money do I have or need to save?
• How long can I realistically travel?
• Where do I want to go and what do I want to do?

You might be able to travel around Europe for one month, or go backpacking in Asia for three months. A well-planned travel budget gives you clarity and helps you stay in control of your money. Once you’re on the road, it’s smart to track your expenses to see where your money goes. And if you notice your funds running low, it might simply be time to head home, save up and start dreaming about your next adventure.

More tips from Gateway Travel about budget friendly travel: How to Provide Budget-Friendly Travel Choices While Maintaining Quality

Highlights to visit in Asia

Chiang Mai in northern Thailand is a must-visit for its ancient temples, including the majestic Wat Phra That Doi Suthep, and its busy night markets. Just a short flight away is Luang Prabang in Laos. The city is known for its serene atmosphere, colonial architecture, and the stunning Kuang Si Waterfalls. The cosmopolitan city-state of Singapore is a dazzling blend of modernity and tradition. This city is famous for it’s iconic landmarks like Marina Bay Sands, the futuristic Gardens by the Bay, and cultural neighbourhoods such as Chinatown and Little India.

In Malaysia, the rainforests of Borneo have incredible wildlife experiences. From orangutan sanctuaries to colourful coral reefs in Sabah. Don’t miss Ayutthaya, an ancient city just north of Bangkok. It is home to beautiful ruins of temples and palaces, reflecting Thailand’s history. Each of these destinations is a unique sight into the diverse cultures and natural beauty of Asia.