Heading overseas as a family or as a group of friends can be financially challenging. You probably have a set holiday budget and within a few days you are already heading to the ATM to draw more cash.

There are ways you can save money when holidaying abroad. Some are obvious steps you can take to get the most for your money, while others are being aware and taking advantage of the services available to save you money and give you more freedom to enjoy yourself in a foreign country.

The first way to save money for your holiday abroad is to book early. Airlines and hotels often offer early bird discounts, which enable you to enjoy a high quality room at a discounted price. Booking in advance also reduces the risk of disappointment in finding out all the rooms are booked by the time you are ready to commit.

Take advantage of comparison sites. Use the internet to your advantage to find the best priced deals where you can save money on flights, travel insurance and hotel accommodation. Comparison sites will take your dates and destination into consideration and provide you with a choice of deals which you can then take advantage of, choosing the ones you feel blend into your budget with ease.

Be aware if you decide to take your credit or debit card abroad with you. Ensure you check with your bank before travelling so you know how much the charges will be. Try not to draw cash from an ATM unless you are desperate. It's always best to exchange your currency at home where possible, exchange it on a day which offers a good exchange rate. Traveller cheques are also a good choice and much cheaper than using your cards while travelling.

Ensure you have some currency on you when you arrive at your destination. But if you're carrying mostly your own country's currency or traveller cheques, don't exchange all your currency at the airport. You will find that once you have settled into your hotel, you can find a bank that will do the exchange for you and they are usually cheaper, giving you a better exchange rate and giving you more cash to spend.

Be wary when buying travel insurance. You should never travel abroad without good insurance but avoid buying it from your local travel agent. You can shop around online and often find the same level of cover at a fraction of the cost.

When travelling abroad don't use your mobile phone unless it is a dire emergency. Roaming charges can quickly build up and give you a nasty surprise when you get home. Rather take advantage of the free Wi-Fi at the hotel where you are staying and use VoIP services, such as Skype to stay in contact with those back home. It's completely free and you won't end up with a horrid bill on your return home.

If you want to hire a car to give you freedom to explore the country while on holiday, ensure you book early. Booking car hire at the airport on arrival is a big mistake and you will find you will pay significantly more. Booking online enables you to find the best deals, often inclusive of miles and sometimes inclusive of insurance.

When packing your suitcase before leaving home, be wary of how much you pack. Know the weight restrictions set out by your airline before travel. If you know you will be buying items while abroad, leave some weight at home to compensate and reduce the risk of having to pay a baggage fee.

Be flexible in your travel dates and try and book out of season. Being flexible by one or two days can considerably save you money both on accommodation and flights.