2. Be Okay With Hostels!
Piggybacking off of that last point, don't knock hostels! Sure some of them can be a bit rundown and bare-boned, but you basically get what you pay for. If you're in Europe and you stay at a place where it's $5-$10 a night to have a bed, things might not be as spruced up as you'd like them to be. But if you bump up your price to around $20-$25 a night, you literally get hotel quality rooms. The only difference is that at a hotel, you'd be paying $50-$100 a night. Look at those savings. 

You can easily look up hostels, check out reviews, and scan pictures at sites like Hostel World- give it a try!