When taking into account the quality of hostel accommodations, one can, more often than not, find it surprisingly affordable. On the other hand, prices can balloon given only a couple of months. One way to cope with this is by tripling your budget for accommodations and other costs.

Next, decide on the number of days you plan on traveling and multiply this to your estimated accommodations cost. Add this to your airfare, bus, and other transportation costs and you would have a rough estimate on how much you would be spending.

If you want to tighten your budget even further, you can opt to prepare your meals yourself. Keep your hands off the heavy drinks and alcohol, that way you will have total control over your expenses. Nevertheless, sometimes one can't help himself to do a little more of white water rafting, bungy jumping, or even sky diving.

ATM and credit cards are some a traveler's emergency kits. ATM booths and shops that accept credit cards have become so widespread and they have now taken over traveler's cheques at the top of the list; though they have their own distinct disadvantages.

Traveler's cheques can be replaced if they get lost or stolen. One thing to keep in mind is, you should keep a record of your traveler's cheques or keep them in a place where someone can fax them to you if you make a claim on a lost cheque.

On the other hand, it would take some time to have an ATM or credit card replaced. On top of that, there are a number of ways one can use your credit card details in a fraudulent transaction. So make sure you don't lose your ATM or credit cards, if you plan on bringing them.

Moreover, if you intend on bringing traveler's cheques with you, make certain that you sign them when you purchase them. But never countersign them until the moment you want to cash them.

Some of the most widely accepted traveler's cheques are American Express and VISA, although American Express might stop selling them soon. It would be unwise if you bring anything other than these two because most people will not recognize or even accept them.