With backpacking, your mantra should always be pack light. Only pack the essentials in order to avoid weighing yourself down when you are hiking or running for a train. Leave your favorite jewelry or sentimental stuff back at home. Only pack what you can easily replace without financial constraints, also it will be cheaper in the long run.
Save every penny you can
If you can, you should really camp out for part of your backpacking trip. In many countries, there are plenty of campgrounds that will not drain your limited resources. This is a great option if you have some experience camping and you have the option of carrying your own tent. Camping just is not for everyone try one of the hundreds of backpacker-friendly hostels or BnB’s.
The best ones have free breakfasts, or even a communal kitchen with access to cooking stuff. If you buy groceries and prepare meals in the hostel, you can save a ton of money over a long trip. You also enjoy the experience by making new friends, which I consider a bonus. Snacks might seem like a silly addition to your gear, but it can really help you keep energy levels high between meals and rests. Dodge this unforeseen expenditure and bring your own protein or granola bars.
Pre-pay for travels
In many places, there are train passes you can pre-purchase. These passes can allow you to travel all over the country you’re in, without worrying about cost after that initial purchase of the pass, for a set period of time. If you are going around a certain region, a train pass can save you bucket loads of money over the course of your entire trip. Train hopping can really get you a great view of a country.
Avoid the convenience of a cab ride lure you in. There are mileage costs and sometimes cab drivers just flat-out overcharge you. If you want to go somewhere and it is too far of a walk, look to public transit to get you there. Buses and trains are cheap and usually reliable. No matter where you are backpacking.
Stay on budget at all costs
Cities have some form of pickpockets or scam artists. They can spot a tourist from a mile away, and will go out of their way to take advantage of you. It is heart-breaking to be staying on budget and then have that all ruined by a theft, so you need to keep your money nearby. The best way to do this? Hidden pockets and money belts. Local businesses love making money off tourists. The ones near tourist destinations will overcharge because they figure you will not realize it.
Check local public drinking restrictions before you go out. Check out travel guides to get all information you need to know. Watch where the locals go. Eat lunch where the locals eat. Spend Friday nights where the locals do. Keep a running list of the cool stuff to do in a location that does not cost anything; going to a parks and gardens or doing some window-shopping. Take advantage of attractions that have deals for students or discount days. Museums and playhouses are the best source of these.
Bag pack as a group
Bag packing is a freeing experience, but there is always strength in numbers. Traveling as a group can save you cash by sharing various duties. One of you is a good cook. That will help big time. One person is detail oriented. Let them set up the train trips. One is a seasoned camper. They will have the gear to camp comfortably and affordably. A group complicates the planning process, but do not let that scare you. You can always break away and meet up later.