Dean Butler, Managing Director of Retail Direct at Standard Life comments: “School is out, warmer weather is here - and while summer is a time for making memories, it can also be a season of overspending. From holidays and days out, to barbeques and entertaining the kids, it’s easy for costs to spiral and to dip into savings to tide you over. However, by taking a few simple steps such as automating your savings or pausing unused subscriptions, you can stay in control of your money and still enjoy everything that the summer months have to offer. You don’t have to turn down all the fun, but if you spend smarter and make savings where you can, you’ll likely feel less of the financial heat by the time school resumes in September.”
Dean Butler shares five top tips to help you save money this summer:
Automate your savings – “Summer spending can involve ice creams at the park, family trips, or spontaneous days out. One way to stay ahead is by automating your savings before the fun begins. Set up a standing order to move money into a savings account the day you get paid, so you’re not tempted to spend it. Some banks also let you turn on automated roundups, which ‘round up’ purchases and save the change – a small but effective way to build up savings as you go. It’s important to ensure your bills and regular expenses are covered first, but once that’s sorted, having automated savings in place can help you enjoy summer without derailing your financial goals.”
Make the most of lower energy bills – “When temperatures are higher and the sun is up for longer, we spend less on heating and electricity, and our household bills can come down. Considering the high cost of energy over the last few years, this could make a fairly big difference to your monthly outgoings, especially if you’re on a variable rate energy contract. Instead of leaving any extra money in your bank account and spending it later, think about adding it to your savings as a little extra boost”
Pause unused memberships – “In general, we tend to be a bit busier over the summer, so you might find that you’re not getting as much use out of your monthly subscriptions as you usually would – whether that’s your gym or class membership, a recipe delivery service or an entertainment subscription. Helpfully, a lot of subscription services will let you pause rather than cancel them, so it’s worth reviewing whether you might be better off pausing some of them for a few months whilst you juggle a busier summer schedule, if you won’t be using them enough to make the most of the cost.”
Make a summer budget – “The best way to make sure you stay on track with your spending and saving is to make a budget. You may already have one, but it can be a good idea to consider adjusting your budget over the summer to accommodate your change in lifestyle. For example, if your typical budget is a classic 50/30/20 split – i.e. 50% on your needs, 30% for your wants and 20% to your savings - you could think about changing this for the summer months, so you put a little more towards your wants and a little less towards your savings. It might sound counterproductive, but being unrealistic with your budget can lead to overspending, and that could mean you don’t end up saving at all.”
Be smart with where you put your money – “Sometimes it’s not just about how much you save, but what you do with the money you save. For example, with interest rates remaining relatively high, you might be able to get a generous rate on a cash ISA or other savings account. If you’re saving for a shorter-term goal like a holiday or a car, then it’s worth considering if something like this could make your money would work harder for you.
“On the other hand, if you’re saving for a longer-term goal (typically five years away or more) like retirement, then putting any savings into a pension plan or a stocks and shares ISA could be a better option. This will give it the opportunity to grow over time. Just keep in mind that investment growth isn’t guaranteed, and you can’t normally access the money in your pension until you reach age 55 (57 from 6 April 2028).”
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