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Rent a room via airbnb or stay at a hostel
It is possible to find a room or a bed for 30 euros or less a day in most places. In Barcelona we stayed at a hostel found on booking.com, and in Alicante we rented a room via airbnb for that price. Most places have a kitchen where you can cook your meals, a washing machine and a patio where you can relax and make new friends.
Of course there will be a variation in terms of cleanliness, noise or comfort level but this can be expected given this low price in a tourist destination in a developed country.
These are the rates for renting a place for a few days. You can get a discount if you rent a room or an apartment for a week or more, and it is much cheaper (around 200-300 euros) to rent a place for a month or more.
Buy groceries from a local store and cook your own meals
For the first few days in our stay in Spain, we spent a lot of money on dining out. In our later travels we started buying groceries and cooking at least two meals a day. I am still pleasantly surprised by the quality and price of groceries. A loaf of bread for 60 cents, half a kilo of grapes and a bunch of fresh figs for less than two euros, a large chunk of sheep cheese for three euros or less, six eggs for one euro, etc. You can have three delicious meals for 20 euros, wine and beer included.
Eat at places where locals eat
Dining out in Spain is a fantastic experience. There are cafes and restaurants on every corner in major cities, and the quality of food ranges from good to very high (with a few bad exceptions where cafes mostly cater to tourists in popular areas like beaches or tourist attractions). If you go to places where mostly locals eat, usually further away from popular areas, you will get really good food for a very reasonable price. If you hear a lot of Spanish around you, it is a good sign! In many places you can get breakfast which includes tostada (toasted bread with butter and meat or cheese) and a cup of coffee for two euros. For dinner, it is best to get tapas and meals that are from local cuisine. On a hot day, you can get a nice milkshake, a beer or a glass of wine for less than three euros. I love seeing locals get a cup of coffee and sip it leisurely while reading a newspaper or chatting with friends.
I love walking in meandering streets and observing everyday life. Apart from getting a feel for the real life in these new places, you can come across beautiful sites or art generally unavailable on typical tours.
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