Hey all:
You need to save but mainly you need to plan. You need to save because in most places you can't work legally or rely on finding some sort of program which gives you room and board in exchange for work. You need to read a lot in order to pin down which country or countries interest you and have activities you would enjoy. Staying in one city, or even more than one, will not give you the best experience of South America.
What you need to budget depends on which country you want to visit but a good average per day is US$60 not including your international air fare. That will be more than enough somewhere like Bolivia but basic budget in other places like Chile, Argentina and Brazil (which is more like US$100). On top of that are any flights you might take within a country or from one country to another.
You need to have some sort of plan of where you want to go and how long you can afford to stay. It is better to save up than rely on finding some sort of menial work to support your trip.
Not totally on topic but something to be wary of is Brazil is hosting the World Cup in the Summer of 2014. Plane and Hotel rates will be a lot more expensive than they usually are, and harder to book. Could make things a pain during that month, but I'm sure it will be a sight to behold if you are willing to deal with the crowds.
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