Many people get caught up in the seemingly cheap prices here in Lima, but costs add up. Especially with the falling dollar, now one sol is only 2.92 dollars at most places. If you plan smartly, you can easily get by on 500 USD a month. It’s not as impossible as it seems, my husband and I live off of 600 USD a month and that’s for two people. We still manage to go out to restaurantes and out on the town a couple of nights a month. For more ideas go to www.theultimateperulist.blogspot.com

Housing
Furnished housing is by far more expensive than unfurnished housing. So if you’re planning on staying for a bit, go for the latter option. In Lima, you’re best bets are San Luis, Surquillo, San Miguel, Jesus Maria, Lince, Barranco, Chorillos and some parts of Surco and San Borja. We actually spent about 5 months in Miraflores, one of the top-end districts here in Lima and I hated it. We constantly battled mould as it was near the ocean. Now we live in Surquillo, have a much bigger place and don’t have mould. You’ll probably spend about 100 – 200 USD on housing. Another plus about living in the districts above is that utlities are cheaper. We pay half of what we did in Miraflores.

Transport
Although many foreigners and some Peruvians will tell you that the combis (buses) aren’t that safe, I personally think they’re a lot safer than taking taxis and heaps safer than driving yourself around. Combis have routes they follow, unlike taxis which weave all around. Combis will charge you a set rate, but you have to ask a taxi driver how much it costs beforehand and if you look foreign or don’t speak Spanish, expect to be charged double. I enjoy taking combis, you tend to run into people you know and it’s a good place for people watching. Most combis charge 1 sol or 1.20 soles. A 45 minute combi ride to work only costs me 1 sol. If you’re going for a short distance, you should only pay a china, 50 cents, but be sure to ask before you get on the combi.

Groceries
There are lots of supermarkets here, but prices tend to be higher there than in other places. Eco, is a cheaper supermarket. It carries the same things as more expensive supermarkets and is a branch of the Wong supermarket. We go to Eco weekly and probably spend about 60 soles whereas if we went to other supermarkets, we’d probably pay nearly 100 soles for the same things.

Another good place for grocery shopping is the market. Markets are all over the place and allow you to get a glimpse of how Peruvians shop. There’s fresh foods and veggies and even homemade sauces, such as aji.

Shopping
Markets are the best place to go, best sure to ask for a discount and you can usually get a couple of soles knocked off. In general the shops in the front charge more than those inside. A tip, if you’re going to a market, make sure you go with old clothes, no jewelery, and hid your money well.

Polvos Rosados is usually where tourists go, but if you cross the streets to Polvos de Higuereta, you’ll find better quality, cheaper prices, and a cleaner atmosphere. Next to Polvos Rosados is CC de los Altos, which is right on Ovalo Higuereta in Miraflores. There are lots of little kiosks.

El Hueco in Abancay in the center and El Mercado Central are huge markets. I’ve gone to both, and prefer to go with my husband rather than go alone as it’s in a bit of a rough neighbourhood. If you look foreign, I wouldn’t recommend it unless your Spanish is super. You can find good bargins though.

Perhaps the most famous market in Lima with people coming from Chile and Ecuador just to go shopping. It’s a sprawling market with blocks and blocks of shops.

A good place for furniture is Plaza Hogar in Av. Angamos in Surquillo. We just bought a dresser and closet there for about 200 USD. Things are often made by hand (even sanded by hand), and you can choose from different woods and varnishes. Av. Angamos also has lots of stores that sell matresses.

Going Out
There are good freebie places to go in Lima, such as Parque Kennedy, the Plaza de Parmas, Parque de la Muralla, or the Cathedral of Lima (but only on Sundays during Mass). You could also walk along Larco and look at all the souveniers that shops there sell.

If you’re going to go out to discos, try to go a bit early, ie around 10 as prices tend to be cheaper then. Movies usually have lower prices on Tuesdays. Many pizza joints have two-for-one deals on Tuesdays and Thursdays. For restaurantes, look for the smaller hole-in-the-wall places off the main streets. Not only do they usally have cheaper prices, but the food is usually better. Beaches are also free and a great place to relax and people watch.

So by staying off the tourist track, planning, and a bit of sacrifice, you can easily live off of 500 USD a month.