While summer may be a slow time for businesses, for individuals, it is typically a time when we spend more than we do the rest of the year, due to holidays, weddings, and other events. While it’s great to indulge once in a while, you should not forget your financial goals altogether this summer! Below are our 3 tips to help you spend a great summer vacation on a budget.
1. Pay Yourself First
Setting up a direct debit payment to your savings account, so that part of your monthly wages goes directly to your savings account is the first step in order to avoid unnecessary overspending this summer. It’s an easy and effortless way to control how much money you want to spend on your summer activities each month.
2. Make a Match
Another tip to budget smart this summer is matching your spending. For example, if you buy shoes which cost £50, put another £50 in your savings account. This will make you think twice before making unnecessary purchases, as twice the amount will be out of your account!
3. Follow the 50-30-20 Rule
We advise you to use the 50-30-20 rule to make budgeting for the summer, and all year round, easier. 50% of your salary should go to living expenses, including rent, bills, transports, grocery, household, and toiletries shopping. Then, 30% should be dedicated to socialising and buying items which make you happy. Finally, 20% should go to your savings. This is an easy way to budget because you still allow yourself enough to socialise as well as budget for holidays and summer trips or weddings, but you also have a chunk of your salary which will be used to increase your savings.
Summer Vacation on a Budget
If you would like help or advice dealing with your finances, get in touch with The Kelvin Partnership, where one of our accountants will be happy to help assess your financial needs.