Have you made traveling plans yet? You still have time in 2018 to visit some of the cheapest countries around the world.

Whether it's traveling alone or with a friend, if you like to travel on a budget, the following list of countries will help you stretch your dollar and even encourage you to stay there for a bit longer.

We have categorized the following countries by their cost of living Index (COLI). Meaning that each country is rated on a scale of 100 (100 being the most expensive in comparison to living in the U.S.).

For our analysis, we took items like food, housing, clothing, transportation, personal care and entertainment to analyze cost of living.

We also calculated the cost of living in one of America's most expensive cities (New York, NY) and compared it to our list of cheaper countries.

Panama

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COLI: .45

That's right, if you visit Panama City, Panama, you can expect to get 45% more out of your money.

You can visit climbing attractions like Los Ladrillos, Boquete or the beautiful beaches in Playa Estrella.

Mexico

COLI: .62

Some parts of Mexico may be even cheaper then the 62% listed here for Mexico City, Mexico.

You can visit Mayan ruins in Chiapas for the most enjoyable and hands-on history lesson, or  zip line through the Sierra Tarahumara in Chihuahua.

Colombia

COLI: .65

Cities like Medellín, Colombia has been experiencing a surge in tourism. With more stability and increased security in Colombia, tourists are taking notice.

Hit up Colombia's best coffee shops, or go on an underwater excursion through Colombia's lively ocean bottom.

Spain

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COLI: .42

This ancient and rich culture can strengthen your purse-power and stretch your traveling dollars.

Tour Spain on horseback to experience how the Romans traveled, or go to a disco with your friends until the sun comes up. And that's not just a figure of speech. Spanish clubs are open all night, some even after hours.

India

COLI: .73

India is one of the countries with the highest population. Here at Pen Pals, we always see that as an opportunity to make more friends!

Be in awe by one of the world's wonders with the Taj Mahal, or commit to a spiritual experience by visiting the Ganges River.

Malaysia

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COLI: .64

This Southeast Asian country packs a vast amount of culture, history and beauty.

If cheap and delicious food is your jam, Malaysia has a whole location dedicated to food at Jalan Alor. Jalan Alor is not as well known as other foodie spots, but its secrecy makes it even more appealing.

Malta

COLI: .43

Malta is an island located at the southwest of Italy.

The only thing more expensive than New York in Malta is clothing. Clothing in cities like Valletta is 13% more expensive so pack extra cash or extra clothing.

Visit the National Museum of Fine Arts to fit 7,000 years of history in a visit or be romanced by the natural beauty of Gozo.


Whether you are looking to visit or extend your stay for a couple of months or years, these countries have a cheaper cost of living.

Why not give your budget a break and embark on a new adventure at the same time?