Is it safe to drink the tap water?

No. Always use a filter bottle or boil your water to avoid stomach issues that will ruin your budget and your trip.

Should I bring US dollars or local currency?

Bring pristine USD bills to exchange at Casas de Cambio for better rates, but always carry Soles for day-to-day spending in markets.

Backpacking Peru on a Budget

You can comfortably backpack Peru for $35 to $40 USD per day by eating at local markets, using overnight buses to save on accommodation, and booking excursions directly in-country rather than through international agencies. Stick to the 'Gringo Trail' route to utilize affordable shared transport and hostels.

Master the 'Menu del Día'. Avoid tourist restaurants. Look for local eateries offering a 'Menu del Día' for lunch, which includes a soup, a main course, and a drink for 10 to 15 soles ($2.70–$4.00).
Prioritize Overnight Buses. Use Cruz del Sur or Tepsa for long hauls (like Lima to Cusco). They cost $20–$30, but since they travel at night, you skip the need for a hostel bed, effectively saving you $10–$15 per night.
Book Excursions Locally. Do not book tours online before arriving. Walk into local agencies in Cusco or Huaraz one day before you want to leave. You will pay 30-50% less for the same trek or tour than booking in advance.
Use Colectivos. For short distances between towns, skip the tour buses and take 'colectivos' (shared minivans). They cost a fraction of the price and run constantly between major hubs.

Is it safe to drink the tap water?: No. Always use a filter bottle or boil your water to avoid stomach issues that will ruin your budget and your trip.
Should I bring US dollars or local currency?: Bring pristine USD bills to exchange at Casas de Cambio for better rates, but always carry Soles for day-to-day spending in markets.