Budgeting for the Summer Holidays

Budgeting for the summer holidays is something we all mean to ‘get around to’, but often good intentions remain just that, with credit cards and loans being common short-term fixes. However, these types of short-term loans can rapidly multiply and escalate into more significant debts if not managed properly, putting additional pressure onto already squeezed consumer purses.

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A better solution relies on a little planning and advance preparation – a good budget and some handy money saving tips. Rather than panicking at the last moment and taking out expensive loans, start planning for the next summer’s holiday, immediately after the current year’s has finished.

You should do a similar budget plan for other big annual milestones such as Christmas, but the approach is the same. Work out how much you will need for the summer (and other) annual holidays and then break it down over the course of a year.

At the same time, set up separate holiday savings accounts and a direct debit to transfer a smaller regular amount into them each month. Make sure it’s a savings account with a good interest rate!

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Over time, your regular payments will add up until you have a usable lump sum amount. Small bite size payments are also far easier to accommodate than finding large chunks of money.

By following some basic and often old-fashioned money saving tips and thrift, you can easily save yourself a ‘bonus’ sum each month, without cutting your quality of life in any way. This can all go into the savings account.

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Obvious examples include turning your heating down when the weather gets warmer and putting washing outside to dry, rather than into the tumbledryer. Put on jumpers, turn down the thermostat!

Try growing your own fruit and vegetables. Thousands of people are turning to home-grown for the cost savings and health benefits and it’s easy to get started with basic seeds and pots or raised beds. Join a gardening group for tips and advice.

Stop buying small unplanned treat items without thinking about it. The odd coffee, magazine, nail polish or sweets rapidly add up into significant sums! Sums which are better off gathering interest in your holiday savings account…

Start using a cashback site for online purchases. You can rapidly earn commissions and incentive sums on the items you’d already buy online by clicking through your account (just don’t buy extra!).

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Downgrade your brands – if you buy branded or premium, buy regular for non-key items. If you buy regular, seek out the value priced items on the lower aisles. Often, the quality is much the same and some consumer reviews have rated these items higher than their more expensive counterparts!

Remember that marketers count on you being prideful and slow to action or change with your shopping. Bite back, by using vouchers and tokens, switching brands and suppliers for cheaper options and making conscious purchasing decisions.

Once you have the budget and money saving tips in place, then sit back and enjoy the feeling of being in control while you await the holiday fund to build up.

Small steps reap big rewards. Managing your personal finances on a small level is a surefire way to managing your wider finances on a more substantial level. As the older generation were prone to saying ‘if you watch the pennies, the pounds will take care of themselves!’
About the author
The article was writted by Sam,  a financial blogger for moneysupermarket.com, the UK’s number one comparison website, read more here to find out about the great loan rates currently available.





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