Our strategy is to try to be as budget-minded as possible in the broad areas---airfare and hotels. I'd fly at 4 a.m. to get a better deal, and it doesn't bother me one whit to use Priceline to get an acceptable hotel for under (or around) $100 if possible. We're not "foodies" either, and our meals are pretty inexpensive. We splurge on SHOPPING! I try to buy a Christmas ornament everywhere I go, and one for each child's collection. Coins for our youngest, both contemporary and antiques--and reproductions, too. I buy books, videogames or DVD's that aren't available in the States, presents for my nephews, clothing--you name it. I wish there was some sort of Mailboxes Etc. chain in Europe so that we could ship everything home without lugging it on the plane. We also splurge on theater tickets, going as often as we can find suitable shows. I get good seats because it seems ridiculous to be in New York or London and not be able to see the flying Chitty Chitty Bang Bang car because you're behind a post in the Palladium!

sorry, do NOT know what happened there.

Being older and not having much money, we don't buy Birthday or Christms presents. Instead we each have the choice of one or two nights at a posh place on vacation. Works for us

Sandy,
From beginning of trip....I do try to use miles to upgrade, certainly better. If that goes bust I ride in the back and love it! On arrival I generally like a good 4* with services. Car rental in Europe you need a good solid car, I typicially rent a BMW or Mercedes....if you gonna do 200 clicks its needs to hold up My pinching is apt/villa rentals, I typically go to an area and rent and save alot that way....most minor meals at home and eat out once a day. Last night is usually another full service hotel and fly home wherever they'll put me

Splurge on eating and gifts for myself. Save on hotels and souveniers for family/friends. Plus I try and walk or use public transport instead of taxis.

At the moment I can not afford to splurge on big trips but as I am in europe I have a lot of great destinations on my doorstep. I save on airfares and hotels and I am a big finder of nice sandwichbars where you can eat a nice salad or sandwich or pasta without spending too much. I allow myself occasionally. But I spend on theatre tickets and as I am travelling alone I do spend some money on taxis when around at night. And I allow myself a wonderful thing to take home-but it has to be something I really use, not a useless souvenir. For example a jacket or great perfume I wouldn`t get at home.

My husband is the one who splurges! I would be much more modest in our travels, but my husband who doesn't have many "must haves or must dos", likes to travel very comfortably. If this is his only extravagance, so be it. We usually book first class airfare (use points when possible) and a spacious room with a sitting area for relaxing at the end of a busy day. We hire drivers or take cabs instead of public transportation. We rent a good size car with a GPS (don't have one on our own car). We enjoy good food, but don't go out of our way to go to expensive restaurants. When I travel with the ladies, we are much more careful with our money!

Fly cheap, Sleep cheap, Eat Well.

Topping.

I am a chronic insomniac/light sleeper so we tend to spend our money on hotels versus meals. I don't mind eating cheap but when I only get 2 hours of sleep it really ruins my sightseeing.

I am planning my honeymoon and we have been able to save money using Frequent Flyer miles from Pgh to London. We used travelocity.com to save on the rest of the airfare to Greece and back.While in London we are using reward points to book a room at a 5 star hotel. We probably never would have paid the $$$ for the 5 star( I think it's almost $400 USD/night), but getting it for reward points makes it a great splurge. Plus it's our honeymoon!! I am definately looking forward to eating the authentic food in Greece whether it be a taverna or a sit down dinner. Plus I plan to look for gifts for myself and others I can't get in the States.
Everyone is different, but I want to have the best experience I can comfortably afford, so no matter where the money goes, you need to stay within your budget for the trip.