We don't really save for vacations, but we don't take expensive ones usually either. That being said, we decided to do a Disney Med cruise this summer. I started putting money aside for our excursions, hotels (we're also going to take an extra week and sightsee around Europe). I put all of our "spare" money in it. I give myself an allowance each week (pay cash for everything except groceries and gas) - any extra goes in there. Any cash we got for Christmas - most of it went in there. Selling on Craigslist, Ebay, etc - it all goes in there. We're going rewards points for airfare and some of the gift cards, so all in all, the vacation won't be excessive (I hope!)