If you’re planning a holiday, a festival or anything fun this summer, we’ve put together a handy 3 Step Guide to help you save some money and make the most of the brighter weather, when it finally arrives!
Step 1: Sort your subscriptions
We all love a night of Netflix or creating the perfect playlist on Spotify. But all your monthly subscriptions and direct debits can add up to a significant amount.
February is a great time to review your commitments and be honest – could you lose a music or film streaming site? Could you swap your gym membership for a run in the park? Did you sign up to a free trial ages ago then forget to cancel your subscription?
Even cancelling a couple of small £10 direct debits every month could save you £100 by the start of the summer – and that’s a great start to your weekend break fund or festival budget.
Step 2: Create a budget
Do you ever get to the end of the month and wonder where your money went? With bills, social occasions and one-off purchases, it’s easy to spend more than you’d hoped to.
One easy way to cap your spending is to set a budget and stick to it. Here’s our quick guide to getting started…
- Gather all your financial statements including bank statements and recent utility bills.
- Take a note of all your sources of income including pay cheques, freelance income and any other payments. Record this total as a monthly amount.
- List all the expenses you usually have in a month, such as mortgage or rent payments, car payments, insurance, groceries, student loans, eating out, gym membership and clothing budget. Everything you regularly spend money on.
- Categorise your expenses into either fixed or variable. Fixed expenses stay roughly the same every month and are non-negotiable, such as your mortgage or rent payments, where-as variable expenses change each month, for example your grocery bill and eating out.
- Compare your total income with your total expenses – both fixed and variable. Are you spending more than you earn every month, or do you have money left over?
- Work out your plan. If you have money left over (well done!) you could start adding to your summer holiday savings or paying more off your credit card balance. Alternatively, if you’re spending a bit too much, now’s the time to start cutting back. Start by looking at your variable expenses (as we mentioned above) and see where you could start saving.
Handy tip: There are plenty of budgeting apps available such as Mint which helps you track your monthly spending.
Step 3: Review your savings
Having any kind of savings is great – and if you do have some money in reserve, making sure it’s in the right type of savings account is really important.
Here at The Cumberland, we offer a wide range of savings options* including ISAs which can be great for long term saving and Regular Saver Accounts which can help you save for a specific goal.
Why not get in touch with our team to book a savings review – it’s the perfect way to check your finances are in order and start planning for the future. With a bit of forward planning, your summer holiday plans could be even better and brighter!
*T&Cs apply to all our savings accounts