In South America for the past few months, I read every story I came across on how to save money in Europe. They were frustratingly similar and not very helpful.
My least favorite suggestion was a variation on "take a cruise/go to a spa/buy a prepackaged tour." These can all be nice, but really, in terms of soaking up local culture, what's the point? Then there is "go for a shorter time." What, and go home, mow the grass, and lament what a poor schmuck you are because you can't afford a week in Europe? As for "go to Eastern Europe," tell that to the woman who's had a lifelong dream of a romantic trip to Paris, Rome, or London.
Using Paris as an example, here are some tips that concentrate on what visitors do most - eat, go out, get around - that will help to save money across the Continent.
Rent a furnished apartment
Along with being cheaper than what you'd get for the same price in a hotel, renting a furnished apartment (check out the "Europe" section of the website Vacation Rentals By Owner, vrbo.com, for example) can make you feel like you live in a place. You catch the rhythms of the neighborhood, get to recognize some locals, and you can . . .
Eat in
One of the finest pleasures of being in Europe is going to food markets, but if you don't have a kitchen, you can't cook. Look for lodgings like bed-and-breakfasts and hostels (hostelworld.com) that let guests use the kitchen.
Picnic
Years ago, I was a student in France and my parents came to visit at the end of the school year. I have trouble remembering any of the restaurants we ate at, but I have vivid memories of a picnic in the Jardin de Luxembourg and a strawberry tart that nobody wanted to share on the Île Saint-Louis. Getting a chunk of cheese, some cold cuts, bread and wine, and dessert from the pastry shop isn't skimping, it's living. Bonus tip: Pack some cheap silverware, a good, sharp knife, and a corkscrew.
Eat out at lunch