Summertime is the season most people are waiting for, however it’s often the period when we are spending the most. With the kids out of school and in need of entertainment, along with holidays abroad, the summer is an expensive time for many Brits. The average household is expected to spend almost £2000 more on holidays in the summer.
It can be difficult to add summer savings on top of your other financial priorities, whether that is buying a new home or building your retirement fund. You could consider taking out a credit card to pay for your holidays so you don’t need to dip into your savings. However, if you don’t have one already, you might need to increase your credit score to take one out.
Here are some ways you can prepare your savings for the upcoming summer months:
Plan your spending
It’s not always easy to be a long-term planner but planning ahead can help you establish a figure that you have to save for. Creating a financial plan will help you save enough money to pay for all your upcoming expenses without sacrificing your other long-term goals.
Especially if you have children, the cost of activities over the summer holidays can build up. Having a look at some free activities to do with the kids can help you cut costs, whether that is taking them for a picnic or trying to find a low cost camping trip.
Establish a budget
Once you’ve decided on the activities you’ll be doing, you can then establish a budget to cover it all. This will include being realistic about your household financial situation and what you can realistically afford to spend. It’s easier if you set different budgets for all your necessities, from transport and entertainment to food and accommodation.
Knowing exactly where your money is going will help you stick to your budget and make you more intentional with your spending.
Understanding what a necessary expenditure is and what is not will help you cut your spending. Any expenses relating to your home and well-being are a priority which typically includes rent or mortgage, bills, food and transport. Other spending on wants like eating out, shopping, and entertainment subscriptions are less vital and may need trimming down.
Cutting down on unnecessary spending will help you make your savings in good time for summer.
Set a monthly goal
Giving yourself an attainable and realistic financial goal each month will build your confidence in saving. You can start small before saving more each month as your financial situation changes. It also allows you to track your savings, ensuring you’ll have enough for your summer activities and plans.