Money Hangover

Did you suffer from a money hangover last summer, where you woke up one day and realised that you spent more than wanted to? It is not a great feeling, especially with the cost-of-living pressures making it even harder to bounce back this year. 

Summer is fast approaching again, and with it comes the temptation to spend on holidays, socialising, and entertainment. We all deserve to relax and enjoy this beautiful time of year, but how can you enjoy the next few months without overspending? 

1. Create a summer budget

Before you start making plans for the summer, you should consider creating a summer budget. You can start by listing all your anticipated expenses for the season, including holidays, events, and summer activities. It is also important to note any expenses that arise in summer that may not be in your usual budget including Christmas gifts, New Year’s Eve plans or additional costs for fuel if you are planning a road trip. Allocate a specific and realistic amount of money to each category, and stick to your budget as closely as possible. This will help you avoid overspending and keep your finances on track.

2. Automate your savings 

Over the summer period, it’s important not to forget about your long-term savings goals. If your money is sitting in your spending account, it may be too easy to spend it. Stay on track with your savings plan by automatically transferring into your savings account or Term Investment as soon as you get paid. If it’s out of sight, it’s usually out of mind! 

3. Pause any un-used subscriptions

If you are planning holidays over the summer period, be sure to cancel any subscriptions that won’t be used while you are away. This could include gym memberships or Netflix accounts that are only active during the chilly winter months. Over the summer, you may choose to exercise outdoors and pick up a book instead. Think about what your lifestyle will look like and if you can make any cost-saving adjustments.

4. Make the most of free outdoor activities 

Summer can be expensive because you are likely to be socialising or travelling more often. The beauty is that there are plenty of free ways to make the most of the great outdoors on a sunny summer day. Picnics, bike rides, camping, hiking, and beach days are all cost-effective ways to soak up the Australian summer. When planning your summer activities, be sure to consider cheaper alternatives that won’t impact your enjoyment.