Nick Pettit, 45, of Halton Road, received the medals for his bravery in Iraq and Bosnia but decided to sell them when his son Matthew asked who would inherit them.


After speaking with his wife Sonia and four children, Sam, 19, Matthew, 12, Luke, seven and Harry, six, Mr Pettit decided he would sell them and use the money to enjoy experiences with his family.


He said: "The medals don't mean a lot to me. The fact I saved lives is more important and that I made the right decisions at the right time.


"I realised if I sold them and made money I could generate as many memories as possible and do some life experiences as a family."


Mr Pettit, who now works for Simon's Construction in Lincoln, took the medals along to London auctioneer Dix, Noonan & Webb and the hammer went down for £85,000 (£99, 981 including premiums).


Mr Pettit was awarded the George Medal as an RSM serving in Iraq in 2003, where he rescued four RAF personnel from a minefield, despite coming under fire.


Speaking of his efforts in Iraq, Mr Pettit said: "I put my head over a wall and had to find out where the opposition were. I could see bullets landing in the sand behind me and if I didn't do it we would have all been killed."


Mr Pettit also received the Queen's Gallantry Medal for his selflessness in trying to save a colleague in a Bosnian minefield in 1992-93.


As a section commander, he entered a minefield to evacuate a casualty who was thought to be alive, but the casualty unfortunately died before receiving medical assistance.


Mr Pettit said: "I will spend time with my family. I didn't want to miss the kids growing up and we are looking at going to Disneyland, Florida, but so far the furthest we have got is the travel agents."


The auction lot also included campaign medals and documentation about Mr Pettit's achievements, including his recommendations for the medals, a joint commander's commendation certificate and two albums containing paperwork and photographs in relation to the awards.


It also included three letters from parents of RAF regiment airmen whom Mr Pettit saved in Iraq.


Mr Pettit retired from the army in 2004 and is a member of the Royal British Legion in Spilsby.


He has written a book about his experiences called Modern Day Heroes.