The pandemic has made us more adventurous to try new things and also prompted a ‘treat ourselves’ mentality, when it comes to travel.
With restrictions no longer in place, we are happy to spend money on experiences and holidays – to make up for lost time.
In fact, research from thinkmoney found that almost half (48%) of Brits surveyed said they were planning to spend more on their holidays, now that we have our freedom back.
This phenomenon is something known as ‘revenge spending’ – AKA blowing money on trips that we feel we are owed.
However, this can be problematic.
When we focus on short term rewards, we can sometimes lose sight of our long-term financial goals – resulting in big blowouts.
Jonny Sabinsky, head of communications at thinkmoney, says: ‘It’s a phenomenon that’s really about to erupt as we exit all restrictions and finally have the ability to spend the money we’ve been saving since March 2020.
‘As restrictions lift, you might be tempted to treat yourself, refresh your wardrobe or book a holiday to make up for lost time during the pandemic.
‘But if the last 18 months has taught us anything, it’s that we always need a safety net during hard or unexpected times. Don’t fall back into the trap of living paycheck to paycheck.’
Instead of blowing our savings on these much-needed trips, there are some simple ways to save for them and make things as cost-effective as possible.
The experts at thinkmoney have also shared some things to keep in mind…
Save £3 per day
Holidays can be expensive, but if you save slowly and consistently over time you’ll have a generous pot to put towards a trip. A good way to do this is to set a daily amount to put into a holiday fund.
Laurie, from thinkmoney, says: ‘For instance, setting £3 aside each day will see you save £1,095 over the course of the year, which you can put towards next summer’s holiday.’
Round up your purchases
As the saying goes, save the pennies and the pounds will look after themselves – and this very much is the case if you start rounding up your purchases.
Laurie adds: ‘If you spend £21.50 at the shop, round it up to £22 and add that extra 50p to your savings. If you were to do that over 12 months and went to the shop twice a week, that’s an extra £52 in your pocket.’
Lots of banking apps have features that enable you to do this with day-to-day spending.
Clear your cookies
If you’re shopping around for a holiday, ensure you clear your cookies.
‘Websites can increase the price of your holiday by installing cookies on your computer which stores your browser history. They can, therefore, compare the price you have already seen and increase it. To avoid this, clear your cookies using the setting options in your toolbar,’ adds Laurie.
Travel during the week for cheaper deals
A good way to be kind to your bank account is to book trips during the week, rather than at weekends – and avoid peak times like half terms, summer breaks and bank holidays.
Laurie says: ‘Flying over the weekend can be more expensive than, for instance, flying on a Tuesday. If you are able, fly during the week on quieter days to ensure you are getting the best bargain.’
Try keeping a money jar
Cash has become a less popular option since the start of the pandemic – but if you do find yourself with some change, be sure to stash it away.
Laurie adds: ‘If you happen to carry a lot of loose change, make sure you save it.
‘Just putting 20p into a jar over the course of 365 days will help you save £74.’
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