This post was written in collaboration with the Bank of Scotland
Over the past couple of weeks, we have been talking about paying your mortgage off early with ideas for making small savings that can really add up over time.
By making small monthly overpayments, you could save thousands in interest on a 25 year mortgage. So let’s have a look at a concrete example that’s on many of our minds: travel. Here are seven ways you can save on travel and holidays, and how much you could save. Just put the savings toward overpaying your mortgage, to help you get mortgage free faster.
1. Book NOW
The likelihood of a super cheap last minute deal right when your leave of absence gets approved, in the middle of August are pretty slim. So book your holidays as soon as possible! If you wait until everyone starts planning, you’ll pay more in flights and accommodation. Plus, your boss may deny your time off because other co-workers have already booked theirs. The early spring is the perfect time to start planning for a great summer. If you are unsure you’ll be able to make it, travel insurance is generally cheaper than the price hike when booking your stay at the last minute, and many hotels will allow you to cancel free of charge if done in advance.
Money saved: At least £100 per person on flights, and £100 on accommodation. For a couple, that is £400.
2. Get on the email list
Hotel chains, low-cost airlines, even restaurants have mailing list where they let you know their deals in advance. Join the list and be ready to book when the time is right. Keep your holiday savings fund full, so you can snatch the best deals as soon as they are advertised.
Money saved: £20 per night, £140 for a one week holiday.
3. Set an alarm in your calendar
A one way ticket from London to Edinburgh costs £140 if you’re booking for the next day. Book 12 weeks in advance when the fares open up, and you can book a £30 ticket. Eurostar, Megabus and other tickets are the same, but they fly when reservations open. So make sure you get a reminder on your agenda so you can be online exactly 12 weeks before and book your tickets.
Money saved: £110.
4. Enjoy currency swings
One pound currently buys 1.25 euro. Not quite as good as a few months ago, but much better than a couple of summers ago. So if you can couple that with a cheap low-cost fare, you can spend your holidays overseas and have your currency buy more than if going on a national holiday.
Money saved: If you buy £1,000 worth at 1.25, you will get 1,250 euros. If the rate goes down to 1.20 by summer, you will only get 1,200 euros.
5. Look for free things to do
There are tons of free museums, art shows, summer concerts and other cultural events you can enjoy. Just have a look at the calendar of the tourism board of the region you plan to visit, and schedule your holidays around those events. You will then have plenty of money left for a couple of big ticket attractions.
Money saved: £200 for two £25pp outings for a family of four.
6. Stay with family and friends
If you have friends or family members in a region you haven’t visited yet, what better way to spend quality time with them than to explore their stomping grounds? You can also look into exchanging houses if they want to holiday at yours while you enjoy their place… for free.
Money saved: £80 per night, £560 for a week.
7. Remember holidays come once a year
Or more! So save accordingly. It is much easier to save £100 a month and afford a £1,200 holiday than to charge said holiday on your credit card and end up paying it off after you’ve enjoyed it (which is a bit depressing), plus interest at 24.99% APR. You know next summer you’ll go on holiday. Start saving a little with each payslip, and have a great time!
Money saved: up to £300 to finance a £1,200 holiday at 25%.
Check out the Mortgage Free Faster hub of the Bank of Scotland for more information.
David @ Thinking Thrifty says
A lot of great tips there I had never heard of. I’ll certainly be applying these in future when booking my next holiday. Thanks for sharing!