Peru is pretty cheap... when I was there we ate at the local equivalent of five-star restaurants for less than $10 per person... and hostels aren't very expensive either.

Once you get to Europe that can change, of course.

Maybe you'd be interested -- a few days ago I posted on my blog @traveladdict some "insider secrets" for travelling really cheap based on a lot of hard earned experience.

And speaking of hostels, tomorrow I'll post my hostel sex story. (It's less awkard than it sounds.)