With lower prices than western Europe, Poland is a cheap alternative that offers history, culture and contemporary entertainment. On an average standard of living, you can eat and sleep in Poland for $35 to $50 per day. If you want to go even cheaper, accommodations in hostels and meals at snack bars will bring down your cost to about $21 to $35 per day.
Portugal is another European savings gem. Accommodations, meals and entertainment are all cheaper than in neighboring Spain and other western European countries. Lisbon is known as western Europe's cheapest capital. According to Budget Your Trip, the average daily cost per person is $42 for accommodations and $34 for food.
As one of the newest members of the European Union, Bulgaria is working to build itself as a tourist location. For this reason, prices are cheaper than in most European countries. One U.S. dollar will get you 1.40 Bulgarian levas (the Bulgarian currency).