Most backpackers chose to stay in Hostels, partly because it’s one of the cheaper options but also for the social aspect and party atmosphere that can often be found there. This being said, even staying in hostels will soon add up and eat away at your budget.
In days gone by, this was not too much of a quandry for backpackers around the globe. Budget travel needs, by definition, budget accommodation and up until the last decade the main types of accommodation favoured by many backpackers have been campsites, caravans/campervans and of course, good old youth hostels.