In recent months our household finances have been squeezed by rising mortgage, utility, food and petrol prices.

For many, this will mean that a summer holiday this year is out of the equation because there won’t be any spare cash once all the bills are paid for.

However, as we all know, taking a break out from the stresses and strains of daily life can revitalise even the most tired soul and prepare it for another year of hard work.

So, if you have resigned yourself to the fact that you won’t be jetting off to warmer climes this summer, think again.

Here are our top tips to help you budget for a summer holiday including how to get your hands on a money-off voucher for Thomas Cook worth £150.

Thomas Cook voucher

Throughout May, compareandsave.com has been running a Barclaycard survey about spending. Each person who fills in the quick five minute survey will be sent out a money-off voucher for Thomas Cook worth £150.

Click on the link to enter the Barclaycard survey

Credit Card

If you don’t think you will be able to save enough money to pay for a holiday in just two or three months, but you could manage it in say six to 10 months, you could use a credit card to pay for your trip.

If you get a Barclaycard Purchases Credit Card, you will pay no interest on all purchases for 10 months.

This would work great for you if you are disciplined with your money and made a deal with yourself to pay the balance off before the 10 month interest-free period expired.

What’s more, when you pay for a Thomas Cook holiday using a Barclaycard or Thomas Cook credit card, you will not have to pay the usual credit card fee of 2.25% (up to a maximum of £50).

Typically, when someone uses an interest free credit card to make a purchase they will then save up the money they need to pay the bill off at the end of the free period in a high interest savings account. This money will then be earning interest which can go towards the money needed to pay off the credit card balance.

You can apply for the Barclaycard Purchases credit card here.

Travel Insurance

If you are going on holiday, you will need to buy travel insurance – don’t forget to account for this in your holiday budget.

If you compare travel insurance, you may be able to find better cover for a lot less money which will keep the overall price of your holiday down.

Click on the link to compare travel insurance.

Give up a habit

It is amazing how much we spend on regular luxuries without realising it. However, giving up these luxuries is most likely to give us the free cash we need to be able to afford a summer holiday.

It may be hard to leave behind these regular treats, but you really will be amazed at how much they cost you over the course of the year.

The most obvious expensive luxury is smoking. The average male smoker smokes 14 cigarettes a day and is set to save over £100 a month if they quit.

If you don’t smoke, you may well be a regular coffee drinker. If you spend £1.50 on a coffee each morning, you are spending £7.50 in a working week and £30 a month on your caffeine kick.

Another common way people haemorrhage money is by buying lunch every day instead of bringing food from home.

If you spend £3.00 a day on lunch, you are spending £15 in a working week and £45 a month on a meal that could cost a third of the price if you make it yourself.

No matter what your vice is, there is certainly money to be saved if you can give it up. If you put this money in your savings account each month, your holiday fund will soon grow.

Use our calculators to see how much you could save

Savings accounts

The Thomas Cook holiday voucher will be a good start to your holiday fund however, you are probably going to need to save to pay for the rest.

Do some research and see how much you will need to be able to afford a holiday in two or three months. If you can, hold off until the end of the peak holiday season and you will get much more for your money.

Once you have an idea of how much your holiday will set you back, work out how much you will need to save each week or month to meet your target.

If you put this money into one of the market leading savings accounts you could earn a substantial amount of interest which should help to boost your funds further.

Internet savings accounts usually pay higher rates of interest than accounts opened in branch.

If you need to save for your holiday, you probably won’t be able to book your holiday straight away because travel agents usually require full payment if you are travelling within 6 weeks of the date of booking.

Click on the link to compare high interest savings accounts

More ways to cut the cost of your holiday

• Pack light – save yourself money on new clothes and baggage costs
• Buy an all inclusive holiday package – by paying a little extra you can eat and drink all you like and keep any spending money you have for souvenirs
• Go self catering and shop in local supermarkets – self catering holidays are generally cheaper and if you can find a local supermarket you will be able to buy your food for less than you would in the UK. You would have to buy food if you were still at home anyway
• Find free child places – A lot of travel agents and tour operators offer free child places so if you have children this can seriously reduce the overall cost of your holiday