How to get there
To reach McLeod Ganj, you must take a night bus in the Kashmere Gate bus station in Delhi. This bus cost approximately 1000 INR and you arrive the next day 6 AM in Dharamshala. From there you need to get a tuk tuk or taxi to go up the hill to McLeod Ganj and the surroundings cities.
Where to stay there
I stayed in the small city of Bhagsu and was paying only 100 INR, around 1.5 USD per night to sleep in a clean private room with shared toilet. 
In this city is very useful to have a bootle of water with you all the times because you can fill it with filtreded water in stores for 5 to 10 INR per litre.
The place I was staying was called Melting Pots and was located next to Bhagsu temple. The owner was a lovely indian lady with nickname of Didi.
There are another cities around famous for backpackers including Dharamkot. If you want to stay more central in Mcleod Ganj you pay at least 1000 INR per night, meaning 10 times more expensive.
What to do there
If you are into meditation, the Tushita center in Dharamkot is a great place to go and get daily classes between 9:30am and 11am in exchange of donations. Classes were always full, so be there earlier.
If you are up to yoga there are plenty of courses and they cost 200 INR per class. Massage is also available starting from 500 INR. I payed 900 INR for a Ayurvedic massage.
There is also one waterfall in the city. You need to do a 20 minute walk up the hill and enjoy the view. The water is quite chill but I was able to enter and swim in the top. There is a also a small shop to buy chips and drinks in case you forgot to bring.
The walk between Bhagsu and McLeod Ganj takes 20 minutes and there are a few interesting local shops on the way including hena stamps. In the same way there is an old man that read your hands for 100 INR.
Another attraction is going to the cafe and small restaurants. There are jam sessions in Om Café in the way between Bhagsu and Dharamkot, I went twice there and was invited to play the guitar. During the day many people spend time drinking chai, the famous indian tea with spices. Almost all of these restaurants have free wi-fi. In the city of Mcleod Ganj, theree is the famous Dalai Lama temple and also a small and beautiful temple in the entrance of the city.
If you are up to shop, there are plenty of souvenirs stores to test and buy the singing balls.
