Budget travel in South America has a cost spectrum wider than any other region, and understanding which countries are cheap vs expensive by local standards matters.

The cheap tier (2025): Bolivia ($20-28/day), Ecuador ($25-35/day), Peru outside Lima ($22-30/day), Colombia ($30-45/day), Paraguay (rarely visited, genuinely cheap).

The middle tier: Argentina (varies wildly due to inflation and exchange rate — research current conditions carefully), Uruguay (similar costs to Southern Europe, not a budget destination), Chile (expensive by regional standards, Patagonia especially).

The expensive tier: Brazil (Rio and São Paulo are surprisingly expensive; the interior is more affordable), the Caribbean coast of Colombia (Cartagena specifically has become very expensive for accommodation).

The regional transport note: long-distance buses in South America are generally excellent quality. The cama (reclining flat bed) class on Chilean and Argentine buses is genuinely comfortable for overnight journeys at $30-50. Peru's Cruz del Sur has semi-cama and cama options that are much better than the tourist vans that clog Cusco.

The altitude note: Bolivia and Peru involve significant elevation. Acclimatization days in Cusco ($2,500m) and La Paz ($3,600m) are not optional — they prevent the miserable headache-and-nausea days that waste trip time. Budget these days into your itinerary.