I'm an Australian female and am going to Europe next Friday alone for 6 months.
While in Europe you must make a habbit of living in small rooms. But as far as surrounding is concerned Europe is a must visit destination, beautiful and fascinating.
Hostel costs vary strongly according to time of year (july/august is high season, and more expensive) and country (eastern europe is cheaper). Especially for the weekends, it makes sense to book ahead. Check the at the top of the page for some indication of prices. (This is the combined set of the hostels from two of the largest hostel booking sites, hostelworld and hostelbookers, so lots of choice.)
Some hostels have a maximum stay of a week. Some allow staying for longer. I generally assume that if you're settling down for an extended period of time, though, it's cheaper to find a share house than to stay in hostels. Also, London itself is one of the most expensive cities in the world - If you at all need to stretch your money, get out.
Work without visa: Forget it. Why would they run the risk to employ you (which could get them massive fines), when there's a ton of Europeans who'd love to get the same job, and would stick around for more than a few months? So, erm, I really hope you don't need that in order to survive for those 6 months, given that you're leaving next week... Consider still applying for a Working Holiday visa for the UK, maybe? I don't know what the requirements are for that exactly, and if it's at all feasible to complete the application process while on the road, but I'd say that's your best shot.
When you have a WHV, a common thing to look for (one of the few industries actively recruiting backpackers in the UK, from what I hear) is a "live in job", where you're offered accommodation and pay in a hotel somewhere (expect it to be far away from everywhere), and do cleaning / work the nightshift / whatever.
Unfortunately, you do need a work visa to get a job in the UK. Check out the visa options on the UK Border Agency site:
In regards to hostel costs, it can be as much or as little as you want to pay. In you can move the slider to Price to sort hostels by cheapest available. That should give you a decent price range to budget for. You can also book up to 31 days on TP and once you have checked in many properties are happy to extend for long-term stays.
Good luck with your planning!
Work without a visa may be hard to impossible to find but lots of travellers find work in hostels. You don't officially get paid anything so it is classed as voluntary work (which you need visa for) but you can get food and free accommodation out of it.
This is as good as getting paid a small wage given how expensive food/beds are in europe. Hostels will be £15+ just for a bed in a shared room in London and an be even more expensive in other parts of Europe. Check hostelbookers or hostelworld websites for an idea of prices.
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