Work out what you will spend on holidays over the next 12 months.
Don’t forget to include weekends away, hen dos, and spa breaks. Make sure that your calculation is comprehensive and includes the cost of insurance, spending money, airport purchases etc.
Take a look back to previous years to work out what you have spent in past years to check that your figure is accurate.
When you know what you will spend in the next 12 months, divide this number by 12. This is the amount that you should then be set aside each month into a separate holiday account to prefund your fun.
So, for example, let's say you are going to spend 2,750 in total, you then need to save 229.17 each month. You could use a regular saver that allows withdrawals for holiday account.