budget traveling this July. Am I crazy?

50 Eur is not much, but it's possible. Buy a small tent and a sleeping bag. Camping is the cheapest way to spend a night, for about 10 Eur you'll get a place. Try to share a car with other travelers for transportation. See on website www.mitfahrgelegenheit.de . For food and drinks you'll need min. 15$.
Good luck - Asia is much cheaper
Costaklaus

Hi Nefertiti
How nice you are coming to Europe, to bad you are not coming to Sweden :)
Of course there are a lot of tourists here, a lot of americans but mostly europeans. There are a lot of tourist not going abroad, so a lot of German tourists in Germany for example. I don't think it will be so much more expensive in the summer. Unless you are going for the coasts. But not a problem with the countries you are going for.
Have you checked how expensive the festival is? I think you should try to find a hostel before you get there. If there is a festival, then it could be expensive to find a bed.
I don't think 50 euros per day is a big problem, I usually live on 60 euro per day in western europe. Then I'm staying in hostels, eat breakfast at the hostel, but eat out in cheap places twice a day. A lot of people make dinner at the hostels, and perhaps have a pick-nick in a park. If you wanna live cheaper then eastern europe is cheaper. But if you are going for Netherlands of course you should see Paris as well.
Some people love couchsurfing you save money and meet people. Have you descided on the counties/towns you wanna go to, or is it just a suggestion?

Hi again

hostels in europe if you can't find a hostel in the town you are going to, try to send an e-mail to the tourist info center in the town, and ask if they have some cheap place. Don't come to a town in the evening without a place to stay, then you might have to take an expensive hotel. Taxis are pretty expensive in europe so try to go by bus or metros in the towns. I said I live on 60 euro per day, but I'm not a party guy, so if you wanna go to a disco and drink a lot of alcohol it could be verry expensive.
How do you plane to travel around? There is a card you can buy so you could travel free on the railways but I think it's cheaper to go by bus or buy a trainticket.
Sometimes you can find cheap flights between the cities, for example ryanair and easyjet . It's verry different prices on different days, and they will charge you taxes and extra if you bring your big backpack so be careful. A bus company who goes in a lot of places in europe is eurolines . Perhaps not between all the towns where you wanna go, but it give you a hint of the prices.
Are you a student? bring your student card. A lot of places have student discounts, museums and transport for example.

Hi,

Like costaklaus said you can better go camping. The downside of that is that campgrounds are often a bit out the city center. If you have to take the public transport to the city to much you maybe better of looking for a cheap hostel.
Eurolines is probably the cheapest way around, but if you look in time for cheap flights you might be lucky. But July is high season

Good luck and enjoy Europe..

The first link in #3 only covers a tiny fraction of the hostels. Example they list 4 towns in Denmark with hostels!!!! The organization www.danhostel.dk has alone hostels at some 75 locations in that country!! In Sweden and Norway it is even worse (I am aware that you are not going there - but the situation isn't much different in other countries).
In addition Hostelworld sometimes charges extra compared to booking directly at the hostels homepage.
Try to locate both the national Hostel organisation and look for the links at the officieal tourist offices homepage for the city/town/country in question (to find the private hostels).

Re your budget. Be prepared to have to eat picknick food most of the time. And then you say that it should cover transport: hopefuly not between places, but only local in the towns visited? And some entrance fees may be VERY high (10€) and limit you.

Thank you so much you guys. I would need to stay in the center tough since I would do a lot of museum going.Hopefully all will goes well there.

Cheers,
Eve

In some towns you can buy a tourist-card, then you could take local buses and go for free to the most museums. It's a lot of towns you will visit in 3 weeks. Of course you want to see as much as possible, but perhas you should go for less towns and see more of them. Then it will be cheaper because you don't have to take so many buses.

I would not even venture to try it on 50 euros per day.

50 euros per day is definitely doable if you don't include accommodation. A night in a hostel in many major cities will run you between 20-30 euros, which doesn't leave much for anything else. Fortunately, you can see and experience a lot just by walking around. If you're a student and have an ISIC card, you may also be able to get some discounts on admission to various museums etc. Tourist cards can often be quite expensive, especially for a tight budget.