Pack light. No matter where you are going or how you intend to get there, packing light will save you time and money. Try to get everything you need into one large backpack or suitcase to limit baggage fees and provide flexibility to your lodging options.
Bring comfortable shoes. If you want to travel on a shoestring, you will spend a lot of time walking. Skip cabs, buses, and other transit whenever possible and walk from destination to destination. Additionally, extra pairs of shoes only create baggage that is more cumbersome.
Organize your backpack items into containers. This will help you to quickly grab the things you need and keep you organized.
Stay in hostels as opposed to hotels. Hostels are generally much cheaper than hotels. In most hostels you will likely share some common areas with strangers, which can be fun or scary depending on your personality.
Cook your own food. It is much cheaper to buy groceries than to eat out every night. Purchase easy on-the-go snacks like trail mix and granola bars and buy groceries whenever you are staying at one destination for a few days. Cutting your food costs is incredibly effective for stretching your budget.
Stay local and off the beaten path. Large tourist areas are usually expensive. Hanging out in more off the beaten path areas will keep your costs down and may open you to experiences you would have otherwise missed.