It can be difficult to balance having a social life alongside trying to maintain saving goals, especially during the summer months – but financial experts insist it is possible if you follow these tips
As summer rapidly approaches, balancing a social life while trying to maintain savings goals can be quite challenging. New data from MoneyPlus has revealed that Generation X (ages 45-60) are particularly feeling the financial pinch, with over half even cancelling holidays due to their financial situation, or resorting to buy now, pay later schemes to stay afloat.
However, this struggle between saving and spending isn’t exclusive to just this age group, as it can affect everyone. Yet, finance expert at Moneyfacts, Rachel Springall, assures that “it is possible to both save and have a sociable summer.”
Springall explains: “It is down to consumers to budget and be conscious of any essential bills whilst also juggling their aspiring saving goals.”
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Don’t neglect your saving pot
MoneyPlus discovered that 60% of people surveyed felt pressured to spend a lot on big events and milestones – which may be amplified during summer.
Springall warns: “The cost of the summer can escalate quickly if someone does not make efforts to budget. It’s unwise to neglect building a saving pot at this time and it is true that consumers could be a bit apathetic this time of year to save. However, putting a little bit of cash aside each month could really make a difference in the months ahead.”
With the warmer months approaching, Springall and Santander financial advisor Mark Weston are offering practical tips on managing savings while still making the most of the summer holidays.
Automate your saving habits
Springall advises: “During this time, the arrival of app-based savings providers can be useful for those who want to automate their savings habits. There are apps available, such as Plum, which can connect to a customer’s bank account and work out their weekly savings amount. This is incredibly handy for those with busy lives and may forget to make a manual payment each month into their savings pot.”
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Know your finances
According to Weston, staying on top of your spending and planning ahead increases your chances of having more financial freedom and flexibility.
“Having a clear idea of your expenses and budget is a great start,” Weston says. “Using budgeting tools is a good way of getting a handle of what you’re actually spending and what you can afford to spend.”
He advises: “Making sure you understand where your spending has come from and also having a budget plan for the whole year, with summer in particular, can help for planning ahead.”
Springall adds: “Using a budget app like Emma, could be useful on the go. It monitors spending and can help build a pot towards different goals, like holidays, an MOT or even Christmas.”
Use a regular savings accounts
Springall suggests that these types of savings accounts are perfect for gradually accumulating funds as they encourage positive saving habits. “However, consumers will need to work out if they are the right choice for them as some can be restrictive and might not be suitable for larger deposits,” she advises.
“Regular savings accounts can also revert to a flexible account after the term ends, which might not pay a good rate, so savers must make a diary note to reinvest if they are still building funds toward their future goal.”
Be prepared for unexpected expenses
Weston particularly urges parents to have savings set aside for unforeseen costs. “If you know that your normal monthly disposable income is a bit tighter due to children being home more rather than being in school, it is good to have savings put away so it is still possible to socialise and do things with them in the summer.”
Combat financial inertia
Springall encourages consumers to overcome any indifference and reassess how to make their money work harder. “Consumers need to shake any apathy they may have and take a step back to decide how their money could work harder for them during this time period also.
“Consumers ready to get started would be wise to explore the latest top rate tables and read up on some tips and guides to help them on their savings journeys.”