I was lucky in planning my trip. I had internet friends who offered me a place to stay. That helped tremendously. People asked if I were concerned about visiting and meeting people I had only known on the web. My answer was "Not at all." I had the advantage of having known them for some time and talked to them often using voice over internet for quite a few months first.
No internet friends to put you up? You might want to consider couch surfing....
I came across an article at www.cnn.com for the budget minded traveler with some interesting ideas for economizing. Europe for two, under $1,200 I would definitely try this as well as hosting people. I am going to look into hosting some folks this year or next to see how that goes. www.couchsurfing.com is one site to check out as well as Couch Surfing Hospitality Site Listing.
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