Our savings cover all those things Chaz and others. It's just not categorised or separated. If we go on holiday, need a new car, or washing machine, we just buy it, or in reality, put it on a cashback credit card when possible and pay it off at the end of the month.
All money just goes in and out of the Santander 123 account and because it pays 3% interest on everything whenever the balance is above £3k, there's no need to be messing about with separate accounts. The cashback paid on household bills covers just about all of the £5 monthly fee.
I think what I'm trying to say is that budgeting doesn't have to be time consuming or complicated. I can see people thinking that if they have to be writing down every penny they spend or open multiple accounts all over the place they won't bother.
What is important is having a good understanding of all outgoings, where they sit in order of priority and making sure there is provision for irregular expenditure like Christmas, holidays, replacement of cars and household appliances, property maintenance etc before spending on routine day to day stuff that is usually not strictly necessary like food and drink out of the house, magazines, entertainment and days out, new clothes for adults when you have loads already, that sort of thing.
Because a lot of the time it is unaffordable spending on the latter that means people get into a mess budget wise and can't afford a holiday, or a new car when needed. Excluding the people whose income doesn't even cover their basic outgoings obviously.