When traveling abroad on a budget, it is important to remember to live like a local. The closer you are to living like a local in a foreign country, the less money you are going to spend day-to-day. Taxis and private drivers should be avoided. Take the metro, the train, and the public bus. Depending on the country you are traveling to, these modes of transport could set you back just a dollar or two. You will also be amazed by the quality and efficiency of some of these public systems abroad.
For example, when traveling to Singapore, I took a taxi from the airport to my hotel for about $20. On the way back to the airport for my flight out, I took the MRT (Mass Rapid Transit) for about $2. Not only did this save me money, but the trip was extremely comfortable (air conditioned in the hottest month in Singapore) and very fast (took about 25 minutes).
Another positive outcome from taking public transportation is gaining a better understanding of the local culture. You see people on their way to work, kids on their way to school, grandmas on their way to the market. You can watch people interact with each other and pick up some local dialect. And while sitting next to them, ask them for cool things to do and where to grab a bite to eat.
Take public transportation, become intertwined with a new culture, and save money. This tip will help you have a more fulfilling travel experience.