Travelling on a budget is all about striking a balance. For what is the point of an extended holiday in an exotic local if you can't make the most of what there is to see? All it takes to have a successful budget vacation that won't break the bank is some planning.
Your flight:
One of the easiest ways to save money in booking a vacation is to plan ahead and purchase your flight early. The closer you get to your desired date of departure, the more expensive the fare. If you start shopping around six to 12 months before your trip, you will be more likely to get a great deal. And if you travel on the shoulder or low seasons, you can also get considerable savings.
Sightseeing:
If visiting museums and art galleries is on you must do list in the countries you are visiting be sure to check if they have a "free day". Often there is one day of the week where the attraction allows visitors in for free or at least at a discounted rate. Also talk to locals and other travellers about what to check out. You can get great ideas about what to see that might not cost a thing that you wouldn't have otherwise known about.
Getting around:
When travelling over land, it makes financial sense to buy a bus or rail pass that lets you get on and off as often as you like. If you are booking an overnight journey, on most trains you can book a sleeper cabin so you don't have to worry about accommodation for the night.
Within a specific city or town, it always pays to catch local transportation instead of taxis. Also, if you only want to spend only one day in a city, you can pay for a locker at the train station and then safely store your luggage for the day.
Accommodation:
When it comes to accommodation, you have to decide just how low you are willing to go. Know yourself. Would you be happy with cheap and cheerful or do you require a higher end place to rest your head?
If you are booking into a hotel try to negotiate the rates. If you are staying for longer than five days you may be able to get a better price then if you are only crashing for one night. If you book in at the end of the day, you are in a better position to bargain.
Of course, one cheap alternative while on an extended vacation is to camp.
Food:
Simply - eat where the locals eat. Besides being cheaper, this is where you will find the best and freshest food for the best price.
If you read up and have a strategy before you go on a budget trip, you'll be able to make the most of your experience.