Backpacking Central America on $20 a Day

To survive on $20 a day, you must exclusively stay in hostel dorms, travel via local 'chicken buses' instead of shuttles, and cook your own meals using local markets. Prioritize countries like Nicaragua, Guatemala, and Honduras where your purchasing power is significantly higher than in Costa Rica or Panama.

  1. Choose your geography carefully. Stick to the 'Northern Triangle' and Nicaragua. A daily budget of $20 is almost impossible in Costa Rica or Panama. Spend your time in Antigua (Guatemala), Leon (Nicaragua), or Utila (Honduras) to maximize your funds.
  2. Master the 'Chicken Bus' network. Avoid 'tourist shuttles' which cost $20-$40 per ride. Use local repurposed school buses. They cost between $1 and $5 for most inter-city trips. Always ask locals at the terminal where the bus to your destination leaves from to avoid being overcharged.
  3. Eat the local staple diet. Stop eating at restaurants that offer menus in English. Buy your ingredients (beans, rice, plantains, eggs, seasonal fruit) at local municipal markets. A kilo of rice and beans costs about $2 and will last you three days.
  4. Book beds in person. Don't use booking apps that charge commission fees. Walk into hostels during the morning, ask for their cheapest dorm rate, and negotiate a discount if you stay for 3+ nights. Aim for a max of $7 per night.
Is it safe to travel this cheaply?
It is generally safe if you avoid traveling at night and keep your valuables (passport, phone) in a money belt underneath your clothes at all times. Use public transport during daylight hours only.
Can I really do this in Costa Rica?
No. Costa Rica is significantly more expensive. If you attempt this budget there, you will likely run out of money within 48 hours or be unable to afford a place to sleep.