Backpacking South America on a Budget
To backpack South America on a budget, stick to a daily spend of $40–$50 USD by prioritizing local buses over flights and sleeping in hostel dorms. Focus your route on countries like Bolivia, Peru, and Colombia where the cost of living is significantly lower than in Chile or Uruguay.
- Route planning by cost. Structure your route to spend more time in Bolivia ($25-30/day), Peru ($35-45/day), and Colombia ($35-45/day) to offset the higher costs of Patagonia or major cities like Buenos Aires.
- Master the bus system. Avoid regional flights. Use long-distance buses (cama or semi-cama seats) for overnight travel. This saves you the cost of one night's accommodation and covers hundreds of miles while you sleep.
- Eat at 'Menu del Dia' spots. Look for local eateries offering a 'Menu del Dia'—a fixed-price lunch including soup, a main dish, and a drink. These usually cost $3–$6 USD and are the best way to keep food costs down.
- Use hostel kitchens. Commit to cooking breakfast and dinner in hostel kitchens at least 5 days a week. Shop at local 'mercados' rather than supermarkets to get produce and staples at local prices.
- Manage your cash. Use a bank card with no foreign transaction fees (like Charles Schwab or Revolut). Withdraw large amounts at once to minimize ATM fee impact, as many machines in rural areas charge $5–$8 per withdrawal.
- Is it safe to carry cash?
- Carry only what you need for the day in your wallet. Keep your emergency cash and backup cards in a hidden money belt or inside a locked dry bag within your main pack.
- How do I find cheap hostels?
- Use apps like Hostelworld to compare, but try booking directly through the hostel's website or WhatsApp for a 5-10% discount.
- Should I buy travel insurance?
- Yes. A minor medical issue or a missed flight can cost more than your entire trip budget. Use a service like SafetyWing that allows you to pay month-to-month.