This is a guest post by travel enthusiast Matthew Kepnes.

Europe is one of the most popular destinations for North Americans.  Yet even with the slide in the value of the Euro, it is still not a cheap destination. Cheaper than before but still not cheap. However, there are many ways to cut down the cost of a European Vacation.  We don’t live a good financially sound life so we can spend all our money on a two week vacation.  Just like good money management requires planning, so does going to Europe.

Here are 8 ways to save money on your next trip:

1. Don’t do Dinner

In Europe, restaurants offer a set lunch menu, often called the plate of the day. This menu has a number of dishes at an affordable cost. For dinner, these same meals might cost double. Eat out at the nice restaurants for lunch and save money. In Barcelona, “la menu de dia” is usually 10 Euros while a dinner at the same restaurant can run around $35 Euros.

2. Get a Eurail Pass

Traveling around Europe doesn’t have to be expensive. If you plan on visiting a lot of countries or covering a vast distance, get a Eurail pass. These passes offer you unlimited travel within a set time frame and can be used for 1, 3, or 15 countries, or over number of days or months. You pick. When I used mine last summer, I saved over $650 dollars. You can read my Eurail pass review here.

3. Use Tourism Boards

City tourism websites are often an overlooked source of information. People tend to stick to their guidebooks but that information is at least a year old. City tourism websites have a long list of current activities, events, and deals that cost little or no money to you.  While in Amsterdam, I found a city fair because I looked on their website. I spent an afternoon at this event and it didn’t cost me any money.

4. Couchsurf

Couchsurfing is a global phenomenon where people offer other travelers a place to stay for free. The site has over 2 million members.  Locals open up their home to you and provide you with a free place to stay. It’s safe as members as verified by other members and the service. (Other than not getting along, I’ve never heard of a problem!) Most will host families and couples- you don’t need to be a single traveler.  This not only provides you with free accommodation but also gives you a chance to meet the locals and get local tips on what to see, do, and how to save even more money.

5. Take Free Tours

In most of the major cities in Europe, you will find free tours of the city. They are a great way to see the city, get your bearings, and learn about the city without ever paying for it. The biggest company is New Europe and they have tours in about 10 different. I’ve done a few of their tours and they have been very informational. You can find more about them here. However, even if they don’t offer a tour, you can find someone else that does.

6. Go off Peak

The most expensive part about Europe is getting there but if you avoid the summer months, flights will be much cheaper. Visit during the shoulder seasons of the spring or the fall and you can find prices much cheaper and the weather still as nice. Also, use Momondo.com for your flights. They search websites around the world and not just in the US.

7. Skip the Major Cities

Europe has millions of great places to see besides Paris, Rome, London, Milan, etc. Save money by avoiding the big cities. Go to alternative destinations like Croatia, Poland, Budapest, Cornwall (in England), or Southern Germany. Get off the beaten path a bit and you’ll find prices drop a lot. These places are just as good, just as fun, and just as beautiful but without the crowds or high costs.

8. Find the Freebies

In every city, you’ll find free exhibits, museums, and attractions. You just need to research. The Louvre is free on Fridays. All museums are free in England.  FOAM, an art museum in Amsterdam, is free.  But I didn’t know any of that before I did some research. If I didn’t use Google, I never would have known the Prado in Madrid is free from 6- 8pm. Before you go on your trip, do a little research and get a list of free attractions. Often times we assume things aren’t free or cost money when they don’t. A simple Google search can help with that.

Europe doesn’t have to be an expensive destination. I manage to travel around Europe on around 60 Euros per day by following the tips above. Just because we are on vacation doesn’t me have to waste money. There are plenty of ways to have a good time without spending a lot of money.   Budget travel doesn’t have to mean hostels and ramen noodles- it just means thinking outside the box.

Matthew Kepnes has been traveling around the world for the past four years. He runs the award winning budget travel site, Nomadic Matt’s Travel Site, and has been featured in The New York Times, The Guardian UK, AOL’s Wallet Pop, Wisebread, and Yahoo! Finance. For more travel tips and money saving advice, visit his website.

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Welcome to the Million Dollar Journey July 2010 Net Worth Update

Very little has changed since the June update.  In fact, the updates look very similar with the biggest increase this month again being … savings!  While building and generating cash is the goal, it can become an issue if you don’t know what to do with it.  With excess cash, my first choice is to pay down debt, but in my case, my only debt remaining has extremely low interest, or is tax deductible.  The next option is to invest it, which is where I see most of the cash balance going.  For 2010, I haven’t made any RRSP contributions yet, so I’ll be sure to get on that soon.

For those of you who have strong cash flow, what are  your priorities for cash allocation?

On to the numbers:

Assets: $ 531,900 (+1.00%)

• Cash: $4,500 (+0.00%)
• Savings: $50,000.00 (8.93%)
• Registered/Retirement Investment Accounts (RRSP): $76,500.00 (+0.26%)
• Tax Free Savings Accounts (TFSA):  $19,900 (-0.47%)
• Defined Benefit Pension: $30,450.00 (+1.67%)
• Non-Registered Investment Accounts: $12,300.00 (+0.69%)
• Smith Manoeuvre Investment Account: $55,000.00 (+0.92%)
• Principal Residence: $283,250 (+0.00%) (purchase price adjusted for inflation)

Liabilities: $68,200.00 (-2.15%)

• Principal Residence Mortgage (readvanceable): $13,800.00 (-10.97%)
• Investment LOC balance: $54,400 (+0.37%)

Total Net Worth: ~$463,700.00(+1.49%)

• Started 2010 with Net Worth: $399,600.00
• Year to Date Gain/Loss: +16.04%

Some quick notes and explanations to net worth questions I get often:

The Cash

The $4,500 cash are held in chequing accounts to meet the minimum balance so that we pay no fees (accounting for regular bill payments). Yes, we do hold no fee accounts also, but I find value in having an account with a full service bank as the relationship with a banker can prove useful.

Savings

Our savings accounts are held with PC Financial and ING Direct. We usually hold a fair bit of cash in case “something” comes up. The “something” can be anything that requires cash such as an investment opportunity that requires quick cash or maybe an emergency car/home repair.  We also need cash to cover any future tax liabilities.

Real Estate

Our real estate holdings consist of a primary residence plus a rental property. The value of the principal residence remains valued at the purchase price (+inflation) despite significant appreciation in the local real estate market.

Pension

The pension amount listed above is the value of both of our defined benefit pension plans.  I basically take the semi annual statement and add the contribution amounts (not including employer matching) on a monthly basis.

Stock Broker Accounts

Another common question is which discount broker do I use?   We actually have accounts with multiple institutions.  I’m hoping to reduce the number of accounts that we hold in the near future.  Here is a review of some of the more popular online stock brokers.

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