£500 is currently about $800 US. When I lived in Mexico for 3 years, I did okay on about $650-$700 a month - but I was living in an apartment. I would think to travel around on that kind of budget you would be living in a tent most of the time, and not have a lot extra for emergencies, hotels, luxuries, etc.
I think you can do it, but you will be living on the cheap and probably need to have an emergency fund stashed away.
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Bruce Clarke - 2020 Yamaha XV250
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