Dave Sykes linked to a post by a fellow returned from 9 months living out of a backpack in New Zealand:
… One of the most surprising discoveries I made during my trip was that I spent much less per month traveling foreign counties (including countries more expensive than Canada) than I did as a regular working joe back home.
I had much more free time, I was visiting some of the most beautiful places in the world, I was meeting new people left and right, I was calm and peaceful and otherwise having an unforgettable time, and somehow it cost me much less than my humble 9-5 lifestyle here in one of Canada’s least expensive cities.
It seems I got much more for my dollar when I was traveling. Why? …
Raptitude – Your Lifestyle Has Already Been Designed

My hostel dorn bed in Cape Town cost $9/night.
Later, for 3 nights, I splurged on a poolside single, $28/night.
related – my philosophy of voluntary simplicity