Upvote:2
Asking this here you will get a dozen different answers and all of them will be correct. Everyone backpacks differently... some people love tents, some people love hostels. I know a guy who spent a month traveling Japan, but would only crash in abandoned houses.
I would recommend you read up on some basic backpacking guides. There are a dozen out there. I pursued one for you quick and thought it was pretty informative. Only you can decide where you want to go, although people here will be glad to give you some advice about specific locations.
I would recommend you read a few guides... buy a travel guide (if you want to save money 'Europe on a Shoestring' is quite handy). Then, when you have some specific questions that can be answered in a Q&A format, ask them here and we will be happy to help you in any way we can.