The first thing to do is think of your ideal holiday and research the costs involved. Whether you’re travelling far away or staying close to home, understanding exactly how much you'll need will give you a target to work towards. It’ll also keep you motivated.

It can help to break down your expenses. Think travel, accommodation, food, activities and miscellaneous costs. With a clear budget, you can work out how much you need to save each month. You could try using a savings calculator. Oh, and don't forget about any interest you might expect to earn!

To keep track of your progress, you could open a specific savings account for your holiday fund. This way, your money stays separate from your daily spending so you won't be tempted to dip into your savings pot.

Our Regular Saver account lets you deposit from £1 up to £500 per month for 12 months. It could be a great way to steadily grow your holiday fund.

But with this account, if you need to access your money early, you’ll incur a charge equal to 30 calendar days' interest on the amount withdrawn. That’s why it's important to make sure that you know the date you'll need to access your savings.

You could save money into one of our limited access accounts. In return for less access to your money, you get a better interest rate that helps grow your savings. This will give you flexibility to pay for different parts of your holiday when you need to, while still building your savings pot.

To make it easier to keep on target, you could set up automatic transfers from your main account to your holiday fund using standing orders. Pick a day of the month that suits you, such as payday, and get saving.

Even if you can only afford small amounts every month, making regular deposits that earn you interest will add up over time.

You’ll often find travel companies run deals throughout the year. It’s a good idea to keep an eye out for discounts so you can grab a bargain.

A good way to do this is to sign up to airline newsletters and travel reward programmes. You could also book flights and places to stay during sales or off-peak times to maximise your savings.

Pre-booking your activities is usually cheaper too. Attractions, tours and experiences usually offer early-bird discounts.

There are lots of ways you can boost your income. Firstly, think about your day-to-day finances and whether you're getting the best deals. Comparison websites can help you make savings on everything, from gas to electricity and broadband.

You could slash your grocery bills too, using loyalty schemes to unlock discounts or switching to own brands. There might also be jobs around the house that you may be able to do yourself instead of paying for help. According to one study, nearly half of homeowners estimate they've saved over £1,000 from taking on DIY projects themselves. ¹
 

Also, did you know many companies and organisations are willing to pay consumers to test and rate their products? Signing up to market research focus groups or online survey sites can be another way to earn a bit of extra money.