Believe it or not, Europe on $50 a day is still possible as long as you are flexible, creative and willing to give up on a few comforts of home.

Remember: hostels are not just for the young.  If you are game, you can expect a shared bathroom and a basic dormitory style bedroom with anywhere from six to 20 other guests slumbering beside you. The prices vary between Eastern and Western Europe but they almost always include free breakfast and sometimes a free walking tour or bike rental.  For $10, you can buy a membership gold card for www.hostelworld.com, which allows you to save on the $2 service fee every time you book.

Camping is another great way to cut down the budget. Scandinavia is one of the most expensive areas on the continent to travel but there is actually a law in Norway and Sweden that allows you to camp for free in any public place. My niece Kit and her boyfriend Will actually camped in a dog park when they were there this past summer.

When it comes to eating, don't be afraid of street food. It is a unique culinary experience; cheap and delicious. The sausages you can buy in Germany and the Czech Republic are way better than a cheap restaurant experience. 

Consider shopping for your own groceries.  Many hostels offer access to a kitchenette if you want to cook yourself a hot meal or have a picnic. If you are anxious for a restaurant meal, take the time to source out three different options.  Force yourself to always compare prices before making a final choice.  

When it comes to things to see and do, your first stop should always be the local tourist office. Look for a list of free attractions and don't forget to grab a map. The back page is often full of discount coupons to local must-sees. Downloading free audio tours are another great way to learn about the destination.  Search for alternatives to the expensive attractions.  For example, in Barcelona, skip the cable car and hike up to Parc Guell.  You will share the same incredible view with people who just paid 20 euros for it.  

When moving around the continent, travel on regional commuter trains and avoid the expresses. It may take longer but the savings are significant.  For longer trips (meaning a couple of months, not weeks) don't buy a Eurail pass.  It is too restrictive and limiting and you also end up paying a reservation fee for every booking. A good alternative is the Eurostar bus company. Their pass covers a larger territory, offers flexible booking options and is cheaper.