I am same as wombling but do it the other way round, we can only save X amount to holidays so I save first then plan with what we have managed to save for the year.
We never ever do half board - or package holidays, unless you get the special deals and one offs - they are known to be far more expensive than just booking flights and accmd yourself.
Op we stayed at home one year and went to a YH for two nights by the sea, and in that year I started to save £10 a month to holiday and whatever I could each week. DP would give me £200 for bday and DH dp would give around same for bday and xmas, so we could each put another £200 from bday to holiday, the other £200 would get divided into our other saving pots, which are for bday and xmas. ( also put £10 a month in those and whatever we can from the week)
So after a year of small but steady saving we were able to build up a few hundred pounds, still not enough to get us on a plane, but enough to get us over to europe on the ferry using tesco vouchers. Had a wonder 4 nights away in a glorious theme park in Europe. But because of saving year in advance the next holiday was already being accrued....now we are 4 years into this regime, and this year we are going away for the longest time, 10 nights. Still Ferry, still euope, still not spain yet...but I cant wait
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At Easter we took advantage of amazing YH offer and stayed in one in countryside for a few nights - its was only £35 per night
and it was a gorgeous hostel and the nicest hostel room
I am hoping they do the offer again in January. The room was normally at least £109 per night. We just take breakfast with us.
This years holiday is already paid for and next years has £400 already accrued. I am hoping we can finally afford flights and a self catering gorg apartment I have found myself in Mallorca.
Because we also save for everything else we need, ie xmas, bdays, childrens fund for clothes and other stuff, means holiday money is for holidays....