What if I told you that the budget stressing you out every month in the US could make you wealthy in South America?
$2,000.
Same number, completely different life.
In California, that budget puts you in a one-bedroom plus constant apprehension. In England, it means cutting corners, delaying travel, and worrying about bills.
However, in South America, $2,000 represents a standard of living that feels unattainable in the US or UK.
I lived in South America for 26 years, and today I’ll break down ten different locations where that income gives you a comfortable middle-class to upper-middle and even elite lifestyle.
This same budget can unlock a home with a swimming pool, weekly restaurant meals, and even frequent travel to the beach or ski resorts. Once you see side by side what’s possible, your idea of financial freedom may change forever.
The surprises aren’t only about cost — they’re about how much better life feels when affordability meets quality living.
The Criteria We Used
For fairness, the same approach was applied in every country. Each sample city was chosen because expats showed strong interest in it in some videos on my channel.
These cities generally have between half a million and 1.5 million residents. That ensures good hospitals, services, and entertainment, without the overwhelming traffic or inflated prices of megacities like Buenos Aires or São Paulo.
I tested the same $2,000 monthly budget in each city. Rent was set as the anchor expense, between 25% and 35% of income, or about $500–$700. This keeps housing costs healthy and avoids the trap of sacrificing quality of life for shelter.
Besides rent, I considered groceries, dining out, transport, utilities, and a cushion for leisure and savings. This method reveals not just how numbers change from one country to another, but how your lifestyle itself transforms.
To put it into perspective, that same budget in parts of the US or UK could force you into a shared space with roommates. In the cities I’ll highlight, it buys far more.
Argentina – Mendoza
Mendoza sits at the foot of the Andes, near Chile’s border, with about one million people in the metro area. The climate is dry, with hot summers, mild winters, and constant sunshine—perfect for outdoor living and wine-country scenery.
Among Argentine cities, Mendoza is considered one of the safest. It also consistently shows strong results in life satisfaction indexes.
A local told us:
“Mendoza is one of the safest parts of Argentina. There are some dangerous areas like anywhere else in the country, but you just need to be careful: hide your phone at night, be attentive to possible thieves, and you’ll be fine.”
The city is also a regional hub with universities, hospitals, and the type of infrastructure expected in a mid-sized South American city. I covered Mendoza in detail in another article, and many readers agreed it’s truly one of the best options in the country.
Argentina’s economy does come with instability, and inflation rates are high. But if your income comes in US dollars, peso devaluations work in your favor and actually increase your purchasing power.
Rents for a central one-bedroom average $450 to $600, while a larger two-bedroom in a quiet but connected neighborhood is about $700. Spending $500–$700 on housing secures you a modern apartment, often with a balcony. Utilities are modest, averaging $50–$100 per month, mainly fluctuating in winter when heating is used.
Groceries cost roughly $220, and dining adds $320, letting you eat out three to five times weekly. Public transport and ride-hailing rarely push past $50 each month, and the central areas are walkable.
Put together, $2,000 supports not only rent, food, and utilities, but also leaves $350–$400 for travel or savings. Locally, you’re positioned as upper-middle class, with comforts most residents cannot afford.
For comparison, that same $2,000 in New York or Los Angeles often leaves you in the lower-middle class, sharing a place with roommates. In Mendoza, you’re living comfortably with space to breathe.
Bolivia – La Paz
What if your morning commute wasn’t spent in gridlock but soaring over the city in a cable car? That’s daily life in La Paz, Bolivia.
The city sits at more than 3,600 meters above sea level in a steep valley surrounded by mountains. With 800,000 people inside city limits and over two million in the metro, it is by far the highest national capital in the world.
Due to the altitude, the climate stays cool year-round, with mild days and chilly nights. Zona Sur, at a lower elevation, is warmer and has become the preferred residential area for many expats seeking tranquility.
A former resident told us:
“As someone who lived there, I loved it, but it highly depends on what part you live in. Zona Sur is more modern, tranquil, full of great restaurants, and cleaner than other parts of the city.”
Outsiders often assume Bolivia is too rugged or underdeveloped for comfort, but the numbers prove otherwise. With $500–$700, you can rent a secure one or two-bedroom apartment in Zona Sur or Sopocachi, often with elevators, security, and modern finishes. Utilities average $60–$120 monthly, rising in the coldest months for heating.
Groceries cost about $230 per month for one person. Dining adds $260–$320, which is enough for several restaurant outings weekly, including almuerzo set lunches that cost only a few dollars.
Transportation adds a unique twist. The Mi Teleférico cable car system connects neighborhoods over hills and valleys, making commutes scenic and surprisingly quick. At $50–$70 monthly, it is affordable and efficient.
On a $2,000 budget, rent, utilities, food, and entertainment are all covered, leaving about $435 for travel or savings. In La Paz, this places you in the upper class to elite lifestyle bracket.
Compare that with San Francisco, where $2,000 might barely get you a cramped room in Oakland.
Brazil – Florianópolis
Florianópolis, or Floripa, is located in the southern state of Santa Catarina. Known for its beaches and subtropical climate, it has around 500,000 people in the metro, making it a city that blends coastal beauty with a growing tech hub.
Expats often assume living here demands Rio de Janeiro prices, especially for anything near the water. But positioning yourself in central or mainland neighborhoods tells a different story.
In areas like Canasvieiras, Coqueiros, or Agronômica, a modern one-bedroom costs around $600 per month. These apartments often come with doormen, elevators, parking, and sometimes even gyms or pools included.
Utilities average $70–$120 monthly, largely due to heavy air conditioning use in the summer. Groceries for one person come to about $270 per month, with eating out adding around $300 if you mix casual lanchonetes and mid-range seafood spots.
Transportation adds $60–$120 depending on your use of buses and ride-hailing apps. Bridges can be congested, but costs remain manageable.
With $2,000, your budget covers everything and leaves about $200–$250 as a cushion for savings or travel. This places you comfortably in the upper-middle class locally, with access to housing and beaches.
Meanwhile, in Miami, $2,000 might not even cover rent. In Floripa, it gives you your own apartment — even with a glimpse of the sea.
Chile – Viña del Mar
Imagine living five minutes from the Pacific, with a beautiful view and sunny weather, but paying a fraction of what it would cost in California. That’s the reality in Viña del Mar, Chile.
The city is about 120 kilometers from Santiago and has a population of around 330,000. It’s known for its beaches and public parks.
The climate is Mediterranean, with warm, dry summers and mild winters, making it attractive for those who want the coastal lifestyle without extreme seasonal swings. Viña del Mar is considered one of Chile’s more polished cities, and because of that, many people assume it’s out of reach for moderate budgets.
A Chilean from Santiago who lived in Viña told us that: “Chile is very expensive compared to other more popular nomad options. A lot of places in Viña are kinda posh, so you may see very high-priced stays and rent, but Uber is pretty cheap.”
Compared to some South American peers, Viña is pricier, especially for housing and food. Still, with $700 per month (or less) you can rent a one-bedroom apartment in central districts or in Recreo. In less central neighborhoods, the same money can even stretch to a two-bedroom.
Utility bills vary between $100 and $140, combining electricity, water, internet, and mobile use. Groceries run about $290 monthly, which means higher costs compared to regional averages but still below North American levels. Dining out two to three times per week adds another $330.
Transport stays reasonable, usually between $50 and $90 if you rely on public transport and ride-sharing apps. It places you in the middle class locally but not at an elite level, since Chile’s costs are noticeably higher than many neighbors.
It might sound expensive compared to the other cities and countries you will discover today, but compare that to San Diego, California, where US$2000 barely covers rent.
Colombia – Bucaramanga
Do you think Colombia is only about Medellín or Bogotá? Many people focus on those two cities, but Bucaramanga offers a different option.
Known as the City of Parks, it has a reputation for green spaces and a relaxed pace. Located in the northeast of the country, near the Andes, the city has a metro area of around one million people.
The climate is stable year-round, with warm days and mild nights. Bucaramanga often gets overlooked by expats who assume it lacks amenities. In another article, I compared it to other major Colombian cities to show its advantages.
Bucaramanga, in reality, has strong value in housing compared to bigger Colombian cities. With a budget around $600, you can secure a new two-room apartment in areas like Cabecera or Sotomayor. Utilities remain affordable, at about $100 per month.
Grocery costs average $230 for a person, and this already includes regular use of high-quality produce and meats. Dining out is also inexpensive. Setting aside $320 per month allows for three to five restaurant outings every week.
Transport adds very little strain. Buses and ride-sharing apps keep monthly expenses at around $60. Combining expenses, a person on $2,000 spends around $1,635 on essentials and leisure, leaving about $365 as a cushion for travel or savings.
With that income, you land solidly in the upper-middle class by local standards, enjoying comfort and conveniences far above average. The same $2,000 total budget in Washington, D.C. leaves you scraping by in a basement studio.
In Bucaramanga, you get a full apartment with a pool.
Ecuador – Cuenca
What if the stress of calculating exchange rates and losing money to sudden fluctuations simply didn’t exist? That’s what sets Ecuador apart — it uses the US dollar, and for anyone earning in the American currency, that means predictability.
There we chose Cuenca, Ecuador’s third-largest city, and one of the favorites of our viewers. The city has around 600,000 people in the metro area, and it is located in the southern highlands near the Andes, about 2,500 meters above sea level.
The climate is mild all year, ranging between 50 and 70 degrees Fahrenheit most days. Because of this temperate weather, utility bills are much lower compared to hotter or colder cities, and the currency stability avoids surprises.
Housing options are strong. Spending between $500 and $700 secures either a high-standard one-bedroom apartment in El Centro or along the river, or a two-bedroom place in a newer building. These units often include security, elevators, and good insulation.
For $2,000 a month, spending a third of it on housing gives you far more than the average local resident. Average expenses for electricity, water, and gas fall around $40 to $80 monthly. Groceries average $220 if you shop in the large food markets, where fresh vegetables, meats, and fruits arrive daily.
Dining out is also not expensive. With $300 monthly for restaurants, you can comfortably eat out three to four times every single week. Public transportation costs only about $40, and because the historic center is walkable, you save even further.
Adding it all up, a sample budget of $2,000 covers everything, and still leaves about $445 for travel or discretionary spending. In Cuenca, that positions you firmly in the upper-middle class, a level far above average.
In Chicago, an income of $2,000 and a budget of US$700 for housing puts you into a lower-class studio in a high-crime area.
Paraguay – Asunción
Asunción, the national capital, is our choice in Paraguay. Located on the Paraguay River in the country’s southwest, it has a population of nearly 550,000 in the city and over 2 million in the metro area.
The climate is subtropical, with long humid summers and short, mild winters. Life there runs at a slower pace compared to many other capitals in South America, and that’s part of what draws in newcomers.
The city has a reputation for being very affordable, but many dismiss it as too basic or underdeveloped. The reality is that Asunción has grown steadily, with new cafés, health centers, and modern housing changing perceptions.
This is what an expat in Asunción told us: “Asunción is a welcoming city. The historic center isn’t very well preserved, but the people are friendly, with that typical indigenous hospitality. The financial center here is growing quite a bit, with some tall towers being built.”
For $500 to $700 per month, you can rent a modern two-bedroom apartment in neighborhoods like Villa Morra, Carmelitas, or Recoleta. These apartments often include access to swimming pools, gyms, parking, and 24-hour security.
Monthly utilities are straightforward, covering electricity, water, internet, and mobile service at about $120. Groceries average $220 per month if you shop at supermarkets and local markets. Dining out is affordable at about $320 each month, which comfortably supports three to five outings every week.
Transportation costs roughly $80 monthly. Altogether, these costs come to around $1,665. That leaves a cushion of about $335 out of a $2,000 budget, to save or spend on travel.
In Asunción, a $2,000 income places you firmly in the upper-middle class. The same US$2,000 that in Asunción makes you comfortable and gives access to a pool and gym, in Boston, Massachusetts, gives you access to three roommates.
Peru – Piura
Piura, in northern Peru, is our focus here. It’s a city with about half a million residents, located a short drive from some of Peru’s best beaches along the Pacific.
The climate is hot and sunny, with little rainfall, which is why air conditioning is a necessity in most apartments. Compared to Lima, Piura offers not just lower costs but also less congestion and a slower pace of urban life.
A housing budget of US$550 secures a modern one or two-bedroom apartment, a spacious unit that might be unaffordable in Lima. Because the climate is hot, power usage goes up when cooling is used heavily, but the overall bill remains reasonable. This cost anchors the budget and still leaves enough space for other categories of spending.
Utilities, covering electricity, water, internet, and mobile, fall between $60 and $110 per month. Groceries come to about $210 monthly — including the world-famous Peruvian seafood. Dining out is also inexpensive.
A $320 budget is enough for several outings each week, mixing casual daily menus with restaurant dinners. Transport stays low, around $50 monthly, since mototaxis and ride-hailing apps are widely available.
One major benefit of Piura is its proximity to beaches such as Máncora and Vichayito. Weekend trips are easy, affordable, and add leisure without creating big costs.
A sample budget of $2,000 covers all essentials, plus multiple outings, with $200 left over for travel or savings. That income places you firmly in the upper-middle class locally.
Uruguay – Montevideo
Can $2,000 stretch in one of the most expensive capitals of South America? Montevideo is where we test that.
With a metro population of about 1.7 million, it holds nearly half of the country’s residents. The climate is mild and coastal, with summer highs near 29°C and cool winters where heating becomes necessary.
It’s a safe city with European influence in its architecture and culture, but that stability comes at a higher cost than many neighbors. Housing sets the tone there. If you look in areas like Pocitos or Punta Carretas, a modern one-bedroom can easily exceed $700.
To fit within a $2,000 budget, you may need to pick a smaller unit, like a studio, which you can find for $500 to $700. In one of my videos I compared Uruguay vs Argentina, and the higher cost of living in Uruguay was the decisive factor in favor of Argentina.
Utilities add another load — expect $80 to $140 monthly, with the higher range during winter when heating is a must. Grocery expenses are noticeably higher than typical South American levels, anywhere between $230 and $340 per month. Dining out costs around $300, which allows a couple of mid-range meals out each week.
These prices put Montevideo closer to mid-tier European cities in cost. The pattern becomes clear: Montevideo provides reliable safety and quality of life but requires budget discipline. With $2,000, you are middle class locally, with some comfort but not extravagance.
And despite being one of the most expensive capitals in South America, and the most expensive city in this list, Montevideo is still 24% cheaper than Houston.
Venezuela – Barcelona
What does $2,000 buy in one of the most unstable economies in the region? For this example, we look at Barcelona, a coastal city in eastern Venezuela near the Caribbean.
Together with its neighbor, Puerto La Cruz, it has around 1.1 million residents in the metro area. The climate is tropical, with high temperatures year-round and very limited seasonal variation.
On paper, you can afford much here, but the reality is shaped by the condition of the infrastructure and the security situation. Venezuela was once among the richest countries in South America, supported by oil wealth. Now, it is a society marked by collapse.
Widespread inflation and years of instability have reshaped daily life. Many assume that makes living there impossible, and in many ways, those concerns are justified. Electricity blackouts happen often, water shortages are common, and medicines are hard to find.
Added to that are high levels of violence and criminality that affect almost every region, including Barcelona. Still, the costs themselves are low. For between $500 and $700, you can rent a one or two-bedroom apartment in secure buildings.
Utilities cost around $60 to $120 per month, but sometimes you need fuel generators to have electricity. Groceries remain cheaper than in most regional peers, around $180 to $260 monthly — if the supermarkets actually have products on their shelves.
Adding expenses, a lifestyle on $2,000 per month could, in theory, place you in the upper class. What matters is whether the property has tanks for water storage and a backup generator, because without them, daily life can become unpredictable.
You would live in a secure unit, eat out, and even keep a savings cushion. But this comfort depends entirely on working backups and private services to cover where the state fails-which is pretty much in everything, from healthcare to security.
In Venezuela, you may enjoy more on paper, but when the lights go out and the water stops, you’ll see why cheap does not equal livable.
Final Thoughts On the Cost of Living in South America
While Venezuela is — sorry for saying this — a terrible place to live, there are many bright spots in South America. I saw many of them personally during my 26 years living there.
So I selected the best cities in South America in one of our most important articles ever.
Levi Borba is the founder of expatriateconsultancy.com, creator of the channel The Expat, and best-selling author. You can find him on X here. Some of the links above might be affiliated links, meaning the author earns a small commission if you make a purchase.
