The backpacker hostel dormitory where I spent my first night in Lisbon had twelve people in a room designed for four. One was snoring with the volume of a chainsaw. Another was on a conference call at three in the morning. That night cost me eight dollars, and it was one of the best decisions I ever made.
Budget travel is not about suffering. It is about spending money where it matters and being frugal everywhere else. You can eat extraordinarily well in local restaurants for a fraction of what tourist-focused establishments charge. You can sleep in incredible accommodations for almost nothing if you are willing to sacrifice location and luxury.
Accommodation Alternatives
Hostels have evolved dramatically. Many now offer private rooms at prices that rival hotels, with social atmospheres and kitchen facilities that hotels cannot match. House sitting platforms connect travelers with free accommodation in exchange for pet and plant care. Couchsurfing remains viable; the network of generous hosts spans virtually every country.
Eating Like a Local
Tourist restaurants cluster around attractions, charging premium prices for mediocrity. Walk three blocks in any direction and you will find neighborhood establishments where locals actually eat. Markets and street food offer the most authentic and affordable dining experiences in most countries. Cook for yourself whenever possible.