Cheap Places to Go in Mexico Where You Can Travel for Less Than $50 a Day

Is It Really Possible to Travel Mexico for Under $50 a Day?

If you’ve ever seen influencers sipping cocktails in Tulum or lounging at a beachfront resort in Cancun, you might assume Mexico has gotten too expensive for budget travelers. And in some places, that’s true.

Over the past few years, certain parts of Mexico—Tulum, Los Cabos, Playa del Carmen—have become ridiculously overpriced. Boutique hotels that used to be $50 a night now charge $300+. A simple meal in a touristy area can cost three times what it should. Even hostels in some of these spots charge $40 a night for a dorm bed.

But here’s the secret: Mexico is still one of the best budget travel destinations in the world—if you go to the right places.

I learned this firsthand when I spent a month traveling through Mexico on less than $1,500. While some travelers were dropping hundreds on beachfront resorts, I was:

Paying $12 a night for a private room in Oaxaca City.
Eating full meals—tacos, tamales, and fresh juices—for $5 or less.
Taking long-distance ADO buses for under $20 instead of renting a car.
Exploring beaches, waterfalls, and ruins for free or cheap.

The truth is, Mexico is as cheap or as expensive as you make it. If you stick to overhyped tourist zones, expect to pay a premium. But if you travel smart, you can explore beautiful beaches, historic cities, and stunning natural wonders—all for under $50 a day.

If you’re looking for an affordable yet incredible adventure in Mexico, keep reading. You don’t need luxury resorts or all-inclusive packages to experience the best of this country—just smart planning and the right destinations.

What $50 a Day Actually Gets You in Mexico

It’s easy to say you can travel Mexico on a budget—but what does $50 a day really cover? Can you actually get decent accommodations, eat well, and explore without constantly checking your bank account?

The answer is yes—but only if you know where to spend and where to save. In the right destinations, $50 a day isn’t just possible—it’s comfortable.

I learned this firsthand in Oaxaca City. One day, I spent:

$15 for a private room in a cozy guesthouse.
$5 for breakfast (a massive tlayuda and fresh juice at a local market).
$7 for lunch (three tacos, a side of guacamole, and a cold beer).
$2 for a colectivo ride to nearby villages.
$3 for entrance to a historical site.
$8 for dinner (grilled fish, rice, and handmade tortillas by the beach).
$3 for an evening mezcal at a local cantina.

Total: $43—and I didn’t feel like I was cutting corners.

Here’s how a typical budget breakdown works in Mexico’s most affordable destinations:

1. Accommodations ($10–$25 per night)

Budget travelers have three solid options:

Hostels – Dorm beds for $8–$15 a night in most places.
Guesthouses & Budget Hotels – Private rooms for $15–$25 a night.
Airbnbs – In some cities, entire apartments go for as low as $20 per night.

Where $50 a day works: Oaxaca, San Cristóbal, Mérida, Guanajuato, Puerto Escondido.
Where $50 a day won’t work: Tulum, Cancun, Los Cabos (where even dorm beds can cost $40).

2. Food & Drinks ($5–$15 per day)

One of the best things about Mexico? Eating like a king for almost nothing.

Street food – Tacos, tamales, tortas, and elotes cost between $0.50–$2 each.
Markets – Traditional Mexican meals (chiles rellenos, mole, fresh seafood) for $3–$5.
Casual restaurants – Full meals with drinks for $5–$10.

Skip the tourist-trap restaurants, international chains, and beachside resorts and you can eat well for under $15 a day.

3. Transportation ($2–$10 per day)

Public transport in Mexico is cheap and reliable if you avoid taxis and private tours.

Colectivos (shared vans) – $1–$3 for short-distance trips.
Local buses – $0.50–$1 for city transport.
Long-distance ADO buses – $10–$20 for 5–10 hour rides.

Taxis and Ubers are affordable in some places (Mexico City, Oaxaca, Mérida) but overpriced in tourist zones. Always ask the price before getting in.

4. Activities & Entertainment ($5–$15 per day)

Many of Mexico’s best experiences are either free or extremely cheap.

Beaches – 100% free if you skip the private beach clubs.
Ruins & historical sites – Entrance fees range from $3–$10.
Hiking & nature spots – Many are free or cost just a few dollars to enter.
Museums & cultural attractions – Often have free entry days.

5. Total Daily Budget

Low-budget travelers (hostels, street food, colectivos, free activities): $30–$40 per day.
Comfortable budget travelers (private rooms, local restaurants, paid activities): $45–$50 per day.
If you splurge on a nice dinner or extra drinks: You might hit $55, but it’s still incredibly cheap.

The Best Cheap Places to Go in Mexico for Under $50 a Day

Not all budget-friendly destinations in Mexico are equal. Some places claim to be cheap, but once you arrive, you realize everything costs twice as much as expected. Others, however, let you stretch your money so far that $50 a day feels like a luxury.

The key is knowing where to go.

Some of the best destinations in Mexico aren’t the ones you see on every influencer’s Instagram. They’re the places where you can wake up to ocean views without paying resort prices, eat incredible food for a few dollars, and explore without constantly pulling out your wallet.

Beach Towns That Won’t Empty Your Wallet

If you’re looking for a cheap beach escape, avoid places like Cancun and Playa del Carmen, where even basic accommodations cost three times more than they should. Instead, head to Mexico’s less touristy coastal towns, where the beaches are just as stunning, but the prices are much more reasonable.

Puerto Escondido is a perfect example. While tourists flock to Tulum and spend a fortune on beachfront hotels, Puerto Escondido still feels authentic. You can rent a simple guesthouse for $20 a night, eat fresh-caught seafood for under $5, and spend your days on a completely free, uncrowded beach. If you’ve ever wanted to learn how to surf, this is one of the cheapest places to do it, with rentals and lessons costing a fraction of what they do in pricier beach towns.

Further north, Mazatlán offers a blend of city life and beach culture without the inflated prices of other coastal destinations. Unlike places that feel like they exist solely for tourists, Mazatlán still has a local charm. You can stay in a comfortable budget hotel near the beach, grab tacos for a dollar, and explore the colorful historic center—all while keeping your daily budget well under $50.

For something even quieter, Zihuatanejo is one of those hidden-gem beach towns where it still feels like time moves slower. It’s a fishing village at heart, meaning seafood is cheap, accommodations are affordable, and the beaches are peaceful. It’s the kind of place where you can spend the day hammocking by the ocean, eating ceviche, and watching the sunset—without spending more than you would on a night out back home.

Colonial Cities Where Your Money Goes Further

If you prefer history, culture, and food over beaches, Mexico’s colonial cities offer some of the best value for budget travelers. These places are walkable, filled with cheap yet incredible local restaurants, and packed with free or low-cost attractions that let you explore without spending a fortune.

Oaxaca City is a perfect example. Even though it’s becoming more popular, it’s still one of the cheapest places to visit in Mexico. You can book a private room in a charming guesthouse for as little as $15 a night, then head straight to a local market for a massive tlayuda (think of it as a Mexican-style pizza) for just a few dollars. Oaxaca is also known for its mezcal, and unlike overpriced tourist bars in other cities, mezcalerías here serve flights of locally made spirits for less than the price of a cocktail in New York.

Mérida, the capital of the Yucatán Peninsula, is another city where you can stretch your money far. While nearby Cancun is overpriced and packed with tourists, Mérida is a laid-back, cultural hub with colonial architecture, lively markets, and some of the best street food in Mexico. The city is also a great base for visiting cenotes—natural swimming holes surrounded by limestone caves. Many of them cost just a few dollars to visit, making them a budget-friendly way to cool off in the Yucatán heat.

If you want to experience Mexico’s most colorful city, head to Guanajuato. The entire place looks like something out of a storybook, with narrow alleyways, bright pastel houses, and underground tunnels that serve as roads. Even though it’s one of the most visually stunning cities in Mexico, it’s still surprisingly cheap. You can get a private room in a locally owned guesthouse for under $20, eat at family-run restaurants for $3–$5 a meal, and spend your afternoons wandering the city’s plazas, visiting art museums, or taking a cheap but scenic funicular ride up to the best viewpoint in town.

Nature & Adventure for a Fraction of the Cost

If you’re the type of traveler who prefers nature over nightlife, Mexico has plenty of destinations where you can explore stunning landscapes on a budget.

Bacalar, often called the “Lake of Seven Colors,” looks like the Maldives—but without the ridiculous price tags. The town itself is quiet and relaxed, and unlike many of Mexico’s beaches, you won’t have to pay resort fees or overpriced entry to enjoy the water. Many hotels and hostels sit right on the lake, meaning you can swim or kayak straight from your doorstep for free.

For a mix of history and jungle adventure, Palenque is an incredible (and affordable) option. The town itself is cheap to stay in, and the nearby Mayan ruins—some of the most impressive in Mexico—are surrounded by lush jungle. Entry to the ruins costs just a few dollars, and you can easily spend the whole day exploring waterfalls, hiking trails, and ancient temples without breaking your budget.

Then there’s Copper Canyon (Barrancas del Cobre), a place that often gets overlooked in favor of more famous destinations. But here’s the thing—Copper Canyon is actually bigger and deeper than the Grand Canyon, and it’s far cheaper to visit. One of the best ways to experience it is by taking the Chepe Express, a scenic train that winds through the mountains. Tickets are affordable compared to most tourist trains, and the views are absolutely unreal.

Overpriced Places to Avoid in Mexico (If You’re on a Budget)

Not all destinations in Mexico are cheap, and if you’re traveling on $50 a day, picking the wrong place can ruin your budget fast. Some spots, especially the ones marketed as “must-visit,” have become so expensive that even budget travelers struggle to make it work.

The problem isn’t just the high hotel prices—it’s the hidden costs. You’ll book a cheap flight, thinking you found a great deal, but once you arrive, everything costs more than expected. Restaurants charge double what you’d pay in a local town, taxis overcharge tourists, and even basic activities come with inflated “tourist prices.”

If you’re looking for cheap places to go in Mexico, these are the spots you should avoid—or at least rethink—if you’re on a tight budget.

Tulum: The Worst Budget Travel Scam in Mexico

Tulum used to be a laid-back, affordable beach town—but those days are long gone. Today, it’s a place where influencers pay $20 for a smoothie, hotels charge “eco-luxury” prices without the luxury, and even hostels cost as much as boutique hotels in other parts of Mexico.

One of the biggest budget traps in Tulum is transportation. The beaches, ruins, and cenotes are spread out, and taxis are notoriously overpriced. There’s no Uber, and colectivo prices keep rising as tourism grows. Unless you rent a bike or take collectivos everywhere, getting around Tulum alone can eat up a huge part of your budget.

Food isn’t much better. While street tacos in Oaxaca cost $1, in Tulum’s main area, you’ll see menus listing tacos for $3–$5 each. That might not seem like a lot, but when you’re used to paying $5 for a full meal in other parts of Mexico, it adds up fast.

If you’re set on visiting Tulum, the best way to keep costs down is to stay in Valladolid instead and take a day trip. You’ll get the same cenote and Mayan ruin experiences without the inflated prices.

Cancun’s Hotel Zone: More Expensive Than the U.S.

Cancun is one of the biggest tourist traps in Mexico, especially if you stay in the Hotel Zone. Restaurants here charge U.S. prices, street vendors overcharge tourists, and even budget hotels cost far more than similar ones in other parts of Mexico.

The biggest issue? Everything in Cancun is built for tourists. If you want a local experience—or even just a reasonably priced meal—you’ll have to leave the Hotel Zone entirely.

If you’re flying into Cancun but still want a budget-friendly trip, head to Isla Mujeres or Puerto Morelos instead. These places have better beaches, fewer crowds, and prices that aren’t inflated just because of tourism.

Los Cabos: A Resort Town That Doesn’t Cater to Budget Travelers

Los Cabos is where you go if you have a big budget and want to spend it. Everything here is priced for resort travelers, not budget backpackers. Hotels, food, drinks—all marked up to match the high-end tourism industry. Even hostels in Los Cabos are overpriced compared to the rest of Mexico.

One of the worst parts? The beaches. Many of the best ones are controlled by private resorts, meaning you either have to pay for access or end up at a less desirable, crowded beach. If you’re looking for an affordable Baja experience, La Paz is a much better option. It has cheaper hotels, better beaches, and a more laid-back vibe.

Playa del Carmen: Cancun’s Smaller, Overpriced Cousin

Playa del Carmen used to be the budget-friendly alternative to Cancun, but over the past few years, it has gotten just as bad. Accommodations are still slightly cheaper than Cancun’s Hotel Zone, but prices for food, drinks, and activities have skyrocketed.

One of the biggest issues in Playa del Carmen is the cost of beach access. Many of the nicest beaches are now controlled by beach clubs, which charge high cover fees. If you want a free public beach, you’ll be competing for space with the crowds.

If you want a budget-friendly beach town in the Yucatán Peninsula, skip Playa del Carmen and head to Mahahual or Bacalar instead.

Puerto Vallarta: Beautiful But Overpriced

Puerto Vallarta is a beautiful destination, but it’s one of the most expensive beach cities in Mexico. Since it’s popular with both international tourists and retirees, prices have crept up to match the demand.

Food, drinks, and activities in Puerto Vallarta cost double what you’d pay in Mazatlán or Zihuatanejo. Even the taxis here are some of the most expensive in Mexico. If you’re traveling on a tight budget, it’s better to stay in Sayulita or San Pancho, just up the coast.

How to Travel Mexico for Less Than $50 a Day (Budget Hacks & Money-Saving Tips)

Traveling on a budget in Mexico isn’t just about choosing the right destinations—it’s also about knowing how to stretch your money once you’re there. Even in cheap places, you can accidentally spend way more than necessary if you don’t know what to avoid.

When I first traveled to Mexico, I made a lot of rookie budget mistakes. I took taxis when I could have used colectivos, ate at restaurants that looked cheap but had hidden service charges, and booked last-minute accommodations in the wrong areas. But after spending months exploring Mexico, I figured out how to keep my daily expenses low—without sacrificing comfort or missing out on great experiences.

Here’s how to make $50 a day last longer in Mexico so you can travel better for less.

Eat Where the Locals Eat

Food is one of the biggest travel expenses, but in Mexico, it doesn’t have to be. The secret? Skip tourist restaurants and eat like a local.

Markets are your best friend. A plate of chilaquiles or huevos rancheros for breakfast costs $2–$3 at a market stall, while street food vendors sell tacos, tamales, and quesadillas for under a dollar each. If you sit down at a full-service restaurant in a tourist area, expect to pay at least three times more for the same food.

If you want a full, home-cooked meal for cheap, look for fonda-style restaurants that serve comida corrida—a daily set menu that usually includes a soup, a main dish, tortillas, and a drink for as little as $5. These places are popular with locals and workers, which means you’re getting authentic Mexican food at local prices.

Use Public Transportation Instead of Taxis

Taxis in Mexico can be shockingly expensive, especially in tourist areas where drivers refuse to use meters and charge "gringo prices." If you rely on taxis, your daily budget will disappear fast.

Instead, use public transportation like colectivos and ADO buses. Colectivos are shared vans that run set routes, and they’re usually cheaper than city buses. A short ride in a colectivo costs about $1–$3, compared to taxis that might charge $10+ for the same distance.

For longer trips, ADO buses are the best way to travel between cities. Unlike taxis and domestic flights, ADO buses are comfortable, reliable, and extremely affordable. A 5-hour bus ride from Oaxaca to Puerto Escondido costs around $15, and routes between major cities are even cheaper if you book in advance.

Book Accommodations in Advance for the Best Deals

Mexico is full of budget-friendly hostels, guesthouses, and Airbnbs, but prices can jump at the last minute—especially in high season. If you book early, you’ll find private rooms for $15–$25 a night, but if you wait until you arrive, you might end up paying double for a last-minute option.

If you’re staying somewhere for more than a few days, many hotels and guesthouses offer discounts for longer stays—but you have to ask. In places like Oaxaca and San Cristóbal, I’ve negotiated 20–30% off just by agreeing to stay a week or more.

Take Advantage of Free and Cheap Activities

Mexico is one of the best places in the world for budget-friendly adventures because many of the best things to do are free or cost next to nothing.

Most beaches in Mexico are completely free to visit—unless you go to places like Tulum, where resorts have privatized much of the coastline. Instead of paying for access to an expensive beach club, find a local beach where you can bring your own drinks and enjoy the same ocean without the extra fees.

Many of Mexico’s best ruins, museums, and historical sites have free days. In Mexico City, major museums like the Palacio de Bellas Artes and the National Museum of Anthropology offer free entry on Sundays. Some Mayan ruins, like Uxmal and Ek Balam, have low-cost entrance fees ($5–$10), while others, like the Palenque ruins, let you explore the jungle for a fraction of the cost of Chichén Itzá.

For nature lovers, Mexico is full of free hiking trails, cenotes, and national parks that don’t require expensive tours. In Bacalar, for example, you can rent a kayak for $5 instead of booking an overpriced boat tour. In San Cristóbal, you can hike in the surrounding mountains without needing a guide.

Travel Slow to Save More

One of the biggest mistakes budget travelers make? Trying to see too much, too fast. The more you move, the more you spend on buses, flights, and accommodation changes.

If you’re traveling on $50 a day, your best bet is to pick a region and explore it fully rather than jumping from city to city. Spending a week in Oaxaca, Mérida, or Guanajuato will cost you far less than trying to visit five different places in the same amount of time.

Buy Local and Avoid Tourist Traps

Markets, independent shops, and street vendors offer way better prices than touristy souvenir stores. If you’re buying crafts, textiles, or artwork, always shop where locals shop and negotiate the price. Many sellers expect haggling, and you can often get a fairer deal by simply asking, “¿Es su mejor precio?” (Is this your best price?).

Is Mexico Really That Cheap?

If you pick the right places, Mexico is one of the best budget travel destinations in the world. But if you don’t plan carefully, it’s just as easy to blow through $50 before lunch.

I’ve done Mexico both ways. I’ve spent less than $40 a day in Oaxaca, eating street food, staying in budget-friendly guesthouses, and exploring free cultural sites. I’ve also accidentally spent $100 in a single afternoon in Tulum, paying for overpriced drinks, taxis, and a beach club that charged just to sit in the sand.

So, is it really possible to travel Mexico for less than $50 a day? Yes—but only if you avoid the overpriced tourist traps, travel smart, and stick to destinations where your money actually stretches.

The key takeaway? You don’t need an all-inclusive resort or a luxury budget to enjoy Mexico. You just need to travel smart.

Now, the only question is: Where are you going first?