How to Travel South America on a Budget

You can travel South America for $25-40 per day by staying in hostels, taking buses, eating at local markets, and avoiding tourist traps. Start with cheaper countries like Bolivia and Ecuador, then move to pricier ones like Chile and Argentina when your budget allows.

  1. Start in the cheapest countries first. Begin in Bolivia, Peru, or Ecuador where your dollar stretches furthest. Daily costs run $20-30. Save Chile, Argentina, and Brazil for later when you've built travel momentum and found your rhythm.
  2. Master the bus system. Buses are your lifeline. Download Rome2Rio app for routes and prices. Book directly at terminals, not online, to avoid fees. Overnight buses save a hotel night - invest in an eye mask and earplugs.
  3. Stay in hostels and use Hostelworld. Book 1-2 days ahead maximum. Dorm beds run $8-15 per night. Look for kitchens to cook your own meals. Ask other travelers for recommendations - word of mouth beats online reviews.
  4. Eat where locals eat. Find the busiest street food stalls and local markets. A full meal costs $2-5. Avoid restaurants near tourist sites. Learn key phrases: 'menú del día' (daily menu) gets you the best local deals.
  5. Use free walking tours and negotiate. Most cities offer free walking tours - tip $5-10. For activities, always ask 'hay descuento?' (is there a discount?). Group discounts are common for 3+ people.
  6. Travel slowly and plan loose routes. Spend at least 4-5 days per city to reduce transport costs. The classic backpacker circuit: Lima → Cusco → La Paz → Salta → Buenos Aires saves money on flights between countries.
Is it safe to travel solo?
Yes, but use common sense. Don't flash electronics, avoid walking alone at night, and trust your gut. Hostels are great for meeting travel partners for day trips or longer stretches.
How much cash should I carry?
$300-500 in USD. Many places don't take cards, and ATMs can be scarce in smaller towns. Keep cash in multiple hidden spots - never all in one place.
Do I need to speak Spanish?
Basic Spanish helps enormously. Learn numbers, food words, and transport phrases before you go. Brazil speaks Portuguese, but Spanish will get you by in most situations.