Holidaying on a budget can be difficult, however it is possible. With a good deal of research and patience, you will find that vacationing can be cheaper than you imagined, and might even leave with you with a little extra cash to spend on souvenirs that would otherwise have remained un-bought.
To begin with, you will want to plan your holiday in good time. The further in advance you book, the cheaper it is likely to be, so if you can start organising a year ahead of time, you'll find your wallet a lot healthier than if you'd started to arrange a few months before.
Comb the internet and travel agents' brochures for package holiday deals. Often Cheap deals on good hotels in Amsterdam, Cairo, New York, or wherever your destination may be, are tied up with flights as well. This can be very cost effective, and you will pay for both air tickets and accommodation at once.
Conversely, you might want to investigate self-catering apartments as an option. These are far cheaper than hotel living, and can be beautiful as well. In addition, renting a vacation flat or villa allows you to really throw yourself into the culture of the country, and make independent decisions about where and when you eat and what sights to see.
In short, it is more than possible to plan an exciting holiday on a smaller budget. There are plenty of areas in which the costs can be dramatically cut, and research and good organisation play a vital role.