The first thing to do is think of your ideal holiday and research the costs involved. Whether it’s an exotic, far-flung destination or a UK retreat, understanding exactly how much you’ll need will give you a target to work towards and keep you motivated.

It can help to break down your expenses into travel, accommodation, food, activities and miscellaneous costs. With a clear budget in mind, you can work out how much you need to save each month. You can use a savings calculator to do this, 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 precious savings pot.

The Coventry Building Society Regular Saver account allows you to deposit from £1 up to £500 per month for 12 months and can be a great way to steadily grow your holiday fund. However, if you need to access your money early, you will incur a charge equal to 30 calendar days’ interest on the amount withdrawn so it’s important to make sure that you know the date you’ll need to access your funds.

Or, 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 allowing you to continue building up 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, bringing you closer to your goal.

Lots of travel companies run promotions and deals throughout the year, so make sure you keep an eye out for discounts.

One way of finding a bargain is to sign up to airline newsletters and using travel rewards programmes. It’s also worth looking at booking flights and accommodation during sales or off-peak times to maximise your savings.

Pre-booking your activities is usually cheaper, with many attractions, tours and experiences offering early-bird discounts.

There are lots of ways you can boost your income. Firstly, think about your finances and whether you’re getting the best deal for you. Comparison websites can help you to find the best deal on everything from gas to electricity and broadband.

Why not look at ways to slash your grocery bill by using loyalty schemes to unlock discounts or switching to own-brands? It’s also worth considering whether there are jobs around the house that you may be able to do yourself without paying out, such as DIY. According to one study, nearly half of homeowners estimate they’ve saved over £1,000 from taking on DIY projects themselves instead of calling a professional¹.

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