1. The first thing to worry about is your plane ticket. Always make the reservation WAY in advance. Most people have a AT&T mastercard/phonecard and you should get (or can get via phone) some coupons on international travel.
The Eurorail is AWESOME. It is the most convenient way to travel ever. You can use one pass for 24 hrs. Use this wisely. Car rental.. My friends and I rented a car for £100 in Germany for 6 days.
Obviously you want to stay in Bed and Breakfasts, or Youth Hostels. Youth Hostels are usually £15-25 a night. Make reservations if you can. ALSO - Don't forget, If you are traveling in Europe, and and you decide to Eurorail it, You can take an OVERNIGHT train, or one that travels late, and sleep on the train. (we did it from Italy to France.) Saves money some times.
- I think that a good way to save money is not eating out too much. I mean, You should DEFINITELY tasted the different cultural food of each country, but don't splurge too much. And DEFINITELY go to McDonalds as LEAST as possible. There are always grocery stores around the corner. Bread, Meat, Cheeze, and soda is cheap at a corner store. As someone (Mike) suggests, "Food, eating, and mealtimes are a significant part of the different cultures. So make sure you don't miss out when you are visiting different countries." I totally agree, but if you are watching your money, don't splurge too much :) be wise about it!
Along with it being much safer, traveling in groups is cheaper too. You can split things w/ your friends and/or people that you meet wherever you are. Just because you are alone, doesn't mean that there aren't those that are wanting to go or do what you are. Split the cost. There are so many nice people out there that are just as willing as you.
Don't buy too many souvenirs. - You wont have room for them anyway.