I got curious and looked. I'm from Sweden and for $1000 I could get to Cabo Verde, Madeira and or course most parts of Europe (like Italy, Greece, France). That is for flight and hotel. You need to eat as well of course, but that you need to do at home as well.
OK, if you live in (Western) Europe, you can go, say, from Netherlands or Sweden to fabulous places like Barcelona or Rome or Istanbul, all very different, picturesque, and not hugely expensive. A flight, if you time it well, could cost less than €100, or even €60..
we in europe are lucky. i got a flight for 20€ to portugal and was staying there for a week for around 50€ a day. thats not even 500 bucks. this vr headset would be 5-8 weeks of holiday worth
So many options in Europe if you don't mind discomfort. From the UK, I'd maybe take a cheap flight to Poland or even the long distance bus. Once there, YHA hostels, camping etc.
Another option is fly to Greece and island hop on the ferries. Or Portugal and northern Spain. Buses are the cheapest way to get around there and fairly flexible although not quick. Sometimes you can hire a car for a week for $250, or some places hire mopeds for way less.
A lot of "meanwhile in Europe" replies here, but even within the United States there are great places you can fly to pretty cheap. Or make a road trip out of it.
Yeah, you've gotta budget it, but it's not impossible to get somewhere, have a great time, and get back for under $1000.