Your budget will depend on the region you choose to travel. Traveling to South East Asia, Africa, Eastern Europe or South or Central America is going to be much cheaper than Australia, Western Europe, New Zealand or North America.
There are four basic aspects to a travel budget:
Transportation is the necessary evil that can be controlled to some degree. You can travel with the locals on public buses or in economy class trains. Besides the initial flight to your destination, which is typically one of the first items to go into your budget, you can decide not fly if there’s the ability to travel by slower means. Also, transportation adds up no matter what country you’re in. The more you move around, the more expensive it gets. You will be able to save yourself a lot of money if you stay in one place for an extended period of time.
Accommodations can give you a good estimate on how much you will be spending in a town or city. I can typically estimate how expensive a destination is by the cost of their hostels or budget guesthouses. I usually assume if my budget accommodations are $4 US per night, I will be spending an additional $8 each day. If its $15 per night, I should expect to spend an additional $30 that day in food, activities, and transportation around town, Simply double the cost of my accommodations. It specifically depends on how you prefer to travel. I personally look for the cheapest option in town. These hostels and guesthouses are typically not for people who need a strip of paper over the toilet, while they convince themselves they are still the first person to sit there. More often than not, its got a friendly group of international travelers whose budget reflects mine. This is also a benefit when you start making friends in a hostel and decide to go out for food, activities, and onward travel. Activities and onward travel will often cost less if you link up with fellow travelers. For example a cab ride or a shared room in a guesthouse will cost less if divided among friends.
Food is on of my favorite subjects while abroad. I love heading into open markets and searching out new things to try. In fact I was able to do this today in Mandalay, Myanmar/Burma. If you can find an open market or street food is typically the most economical way to eat. You’re also able to immerse yourself in cultural foods, which you may miss if confine yourself the touristy restaurants which are typically overpriced. Obviously, markets aren’t everywhere, so look for restaurants where the locals are eating. Typically shows the food is well priced and prepared safely. I realize that street food and markets can cause some interesting bowel movements, but in the end when i return home I always De-worm myself. But, i would suggest that to anyone who has traveled to 3rd world countries upon their arrival home whether they eat from street vendors or not. Also, drinking alcohol can severely deplete your budget. In some typically inexpensive countries, a beer will be expensive in comparison to food and accommodation.
Activities are the most manageable part of your budget. You either choose to do the activity or you don’t. If i plan to do an expensive activity such as a 3 day elephant tour home-stay, skydiving, or scuba certification you will likely want to balance the cost with a few days of being more thrifty.
There are several ways to look at a personal budget and whats discussed above is what works well for me, but possibly not for everyone. If it looks like it will work for you, make it your own and tweak it along the way, as your budget has the ability to make or break a trip of a lifetime.