This hotel room is damp, dirty, and smells of stale urine and I still can't afford it.

Hotel rooms are just not in my budget and I am guessing that if you're here, on my blog now, it probably isn't in yours either. Do not let this stop you from traveling! There are some cheap, even free alternatives!  Backpacking Hostels

Santiago de Compostela, Spain. Backpacking hostel I worked for in 2012.
Hostels get a bad rep. If you have ever seen the horror movie Hostel you probably want nothing to do with one (severed limbs, no thank you!) but please remember it is just a movie folks. Hostels are actually a fairly ordinary thing in Europe and in many cases, just seem strange and foreign to us Americans. I like to think of it as having a sleep over with a potential friend!  If bringing a towel is an inconvenience you can rent one for a few dollars! HostelWorld is a very well known/popular hostel finder worldwide. Use it too!

Airbnb

San Lorenzo, Italy $67/night 2ppl
If you aren't comfortable sleeping with 4+ others in a single room and can't afford the outrageous prices hostels charge for individual rooms then Airbnb is perfect. You pay for a room in someones home. A private room for less than what it costs to sleep next to several others in a hostel? I'LL TAKE IT!
Couchsurfing

Don't want to pay for a room at all? Sleep on someone's couch (or bed!) This is a groovy travel platform that connects you to other travelers who have a couch to lend! You might even get lucky and sleep in a bed! Stick with people who have good references. But whatever you do, be respectful and don't treat it as you would a hotel room. Create relationships with your hosts, not sleep and leave. 

University Dorms

Trinity College. Dublin, Ireland. Twin ensuite accomodation. While students are away for the summer some universities rent out dorm rooms to travelers at a low cost. Isn't that innovative? Here is a link that will guide you in the right direction for college dorms! I must make a confession: After working at several backpacking hostels, a dirty and damp hotel room doesn't sound half bad if it means privacy!