On the Road Budget

Your daily costs when travelling will be the bulk of your budget. If you are doing an organized tour this is easy to calculate - the trip details will tell you what to allow for personal expenses and meals not included as well as optional tours.

For those of us making it up as we go along the trick is to break it down. Don't ask - what will be average daily cost for a 12 month trip including Europe, Thailand, Vietnam, Australia, and a week at a luxury resort in Fiji. The answer is meaningless. Instead split down to regions, countries and sometimes by parts of country (capital cities are often more expensive). Checking guidebooks, travel forums and blogs will then give you an idea of actual costs.

Keys costs for a daily budget are:

Accommodation

These days with the internet fairly easy to estimate. Best budget tip - travel with a friend - in most of the world a double or twin costs the same as a single, and is probably only twice the price of a dorm room. Check out guide books to get an idea of accommodation options available, choose a style of room and then check on line for the average cost. In developing countries you will probably find cheaper options not advertised on the web so using web prices as a basis for a budget is a good idea. Also get a feel for whether breakfast is typically included or not

Food and drink

Probably the hardest thing to estimate. As a rule of thumb I now calculate it as as the same as accommodation - assuming I'm staying in modest hotels (developing nations) or twin share in a private room in hostels (developed world). The amount of self-catering I do will then make the budget a reality. If you drink a lot you may need to add more. Especially in countries where alcohol is a lot more expensive than food e.g. India. If you really cant go without alcohol its worth drinking what the locals drink - its generally cheaper to drink wine in Spain than beer or coke! It was a surprise but we adapted!

Transportation

Catching local buses and shared taxis in developing countries usually averages out the same cost as my daily budget for accommodation. Transportation can vary widely for day to day depending on how fast you are travelling so I average this budget over a week or even a month if spending a week or two on a beach.

I budget separately for internal flights and bus or train passes - the prices for these are readily available on the internet.

If you are purchasing (or taking your own) vehicle remember to include items such as services, tyres, insurances, registration fees and any sales taxes applicable. Also add an allowance for advertising costs on sale and a loss on sale.

Its worth attempting to arrive at the end of a long flight before midnight or after 6am. Not only is it difficult to get accommodation at the hour of the morning but having to pay for a taxi rather than an airport bus can be a budget-killer. Another option is to chill at the airport for a few hours until the bus starts again.

Miscellaneous

Entrance Fees

Some world famous sites now charge foreigners well-advertised western prices US$20 / day for entry to Angkor Wat doesn't sound a lot when you read it a home - but in Cambodia that could cover your hotel and restaurant bill for the day. Its worth budgeting for if your daily budget is US$25/day - especially as most people will spend at least three days at the temples.

Local tours and guides

Again this varies by country, significantly but it can often be cost effective, especially if can get a group of 4 or so together to hire a car and driver or a taxi for day to seem a number of sites in a short time.

Adventure Options

Bungee jumps, jet boat rides, tandem parachute jumps, balloon rides and 4WD adventures. Skiing and scuba diving experiences. Scenic flights, caving expeditions, mountain biking trips. All great fun but even in developing countries you tend to pay first world prices for these imported thrills. If you want to do them its wise to budget for them separately.

Visas

If you are travelling in a part of the world which requires you to get a lot of visas these can add up and are probably worth including into your budget. Sometimes too you will need to make sure you have the right currency with you to pay - the Cambodian government will only accept US$ for their visa on arrival in Cambodia!

Miscellaneous

Laundry, postcards and stamps, internet cafes, replacement batteries, movies, toiletries, hair cuts, aspirin and cough lozenges. I allow about 10% of my accommodation+transport+food budget for these items and the other stuff I have forgotten about. I don't call home often and don't carry a cell phone - if you are planning on doing both regularly you may need to up this budget a bit.

Souvenirs

If you have an idea you will be buying some souvenirs budget for it (including the excess airline charges or postage home).