Just because the economy is bad does not mean you should never leave home. In fact, now may be the best time to travel if you know how to budget your expenses and save money along the way.

The following tips are perfect for traveling on a budget:

1. Take a trip with another person or family so you can split the costs. Imagine how much cheaper gasoline would be if you were to car pool with a friend or family member. The same holds true for other expenses including car rental (if you need one), lodging, etc. By splitting costs you are effectively halving the amount of money you would have spent.

2. Use the internet to find and compare the best travel deals. Sites such as Kayak.com allow you to find cheap flights, cars, vacation packages, lodging, and much more. With the ability to compare prices there is no reason why you won’t be able to save money.

3. Avoid eating out. Instead, bring along as many meals and treats as possible. This may very well be the best way to save money when traveling. Believe it or not, a family of four would spend an average of $100/day eating out; and this is a conservative estimate.

4. Opt for free or cheap entertainment. For instance, instead of spending a lot of money on a guided bus tour you could simply walk around the area and learn on your own. In many cases it is more fun to explore an area without a “so called professional.” Ask locals for ideas on what to see, and grab a map from your hotel or a convenient store.

5. Take cash instead of relying on credit cards. This may not sound like the best idea, but if you want to save money it is a tip you don’t want to pass by. When you rely on cash you can only spend what you have. For example, you may want to take $1,000 in cash for a seven day trip. This means you will be able to comfortably spend $143/day. And remember, you don’t have to spend your allotment every day. Helpful hint: Be sure to take at least one credit card with you in case of an emergency.

If you are a budget-minded traveler you will appreciate these five money saving tips.