How to budget for summer?

How to budget for summer?

Summers are an expensive time of the year; ACUMA financial advisor Natalie Storey gives you a tip or two on summer budgets so you don't end up feeling like a pauper come September

June 21, 2012 4:29 by kippreport

During the summer period when we experience humidity at an unbearable level, most of us are reluctant to spend much time outside and we require indoor activities to keep us occupied. To add to this, families find their self with their children off school for two months. Free activities like a family day at the beach or playing in park are no longer possible. This means indoor activities, visiting the malls, cinema, kids club can seriously have a knock on effect to your cash flow. It is also a perfect opportunity to go on a family holiday or a visit back to your home country, which all cost money.

It is worth putting a budget together with the amount you can afford to spend each week/month on activities to entertain you and your family during the summer months. Make sure you plan ahead. It would also be a good idea to start saving in advance, by putting money aside to help with the financial strain this period might cause. I would suggest that every year, starting from September you look at what you can afford to put into a savings pot each month for your ‘summer holidays’. Every month keep contributing to this saving pot and when the summer arrives 9 months later, you will have the surplus money available to do the things you would like to do. Make sure you have a separate bank account to separate the money.

One useful tip for this summer would be to collect all your receipts for all the activities you did – from weekends away, flights, and all the smaller things that amount up, like days out at the aquarium, new toys etc. Keep a tally of everything you spend during the summer months and see what your total spends are. You will then know how much you will have to put aside each month, from September 2012 for the next 9 months. This pot of money can also act as a reserve for any other unexpected activities you and the family would like to do throughout the year. If you plan in advanced for these things, you will be able to enjoy your summer more without any financial worries.

Natalie Storey is an Executive Consultant at ACUMA Wealth Management