In the northern hemisphere, summer officially begins on the 21st of June 2023. In no time, the days will be longer and the sun warmer, allowing us to get outside and make the most of the season.
But summer’s carefree nature can lead to many losing track of their budgets and financial goals. When the sun is shining, it’s all too tempting to dip into your savings and splurge while everyone is in a good mood. However, this should be avoided at all costs — especially if you’re trying to pay off debt or feeling the effects of the cost-of-living-crisis.
In this article, we are examining proactive methods to financially prepare for summer 2023 and how to avoid overspending. Use these suggestions to strengthen your personal finances and goals before the season arrives.
Preparing is the best way to get ahead. Use these summer saving tips to maintain your budget throughout the season. Or learn how to create a budget here.
This might seem like an obvious tip, but planning your summer around free or low-cost activities will majorly affect your expenses. Plus, planning ahead will help you avoid saying yes to last-minute expenses and events. Book your calendar with local free festivals, museum trips or casual friend meet-ups.
Reducing your automated savings or emergency fund when summer rolls around can be tempting. But this should be avoided at all costs. You never know when an emergency will occur, and having a fund set aside takes the stress away from unexpected fees. Plan your spending around your savings and emergency cash.
Did you know some airlines and hotels reduce their costs around the last week of August?
Though summer is a more expensive time to travel, fees vary throughout the season. It’s estimated that you’ll spend 20% less if you travel after the main summer holiday rush. If possible, travel during September for even more affordable prices.
Leaving your credit card at home forces you to budget with the cash you have. This can reduce the temptation to spend outside your means, which further helps you maintain your budget. Of course, this isn’t always possible. But if you can, focus on spending cash and prioritise necessary expenses.
Knowing the pros and cons of credit cards can help you use them with confidence. Research these cards before you start using them.
If you need extra motivation during the summer, create a second summer budget. This way, you can plan out smaller expenses to give yourself clearer goals rather than relying on your yearly budget. Possible categories for this budget include holidays, entertainment and day-to-day spending limits.
As the summer approaches, examining your budget and current savings is crucial. The warm season can be enjoyed on a smaller budget, but a low-spend summer is more achievable with some pre-planning. Use these tips to make summer 2023 the best so far.
Check out our other great content in our Info Hub, with articles about the different types of credit products, money management tips and help with saving money!