8 tips for a smart summer economy

It’s holiday season and for many, that means trips, summer parties, and other activities that are fun, but that can also be expensive. On top of that, we live in a time where people across Europe are worrying about their bills more than ever and financial confidence is low (European Consumer Payment Report, 2022). 

One of the best ways to feel less stressed about one’s economy is to take control and get a grip on one’s spending habits. Where does my money actually go? And where can I cut back on expenses?

While you can’t do anything about the general state of the economy, you can improve your own finances and establish habits that will see you through the good and bad times.

Here are our 8 top tips for a healthy wallet

1. Look at the big picture:

   The first step to taking financial control is to know what you have coming in each month and how much you’re spending. Remove uncertainty and know exactly how much money you will be able to spend the next month. Download our free budget planner to help you get to grips with your current money situation.

2. Be a detective:

   Examine your spending patterns and look for places where you can save money. Do you regularly spend small amounts that add up – on lunches or coffees, for example? Do you have monthly expenses for subscriptions or services you no longer use? Can you find cheaper options for your energy, telephone and television providers?

3. Pay off debt:

   Remember to start with the account with the highest interest. If your debts are overwhelming, speak to your creditors or an independent advice organisation for help. You may be able to have a payment holiday, consolidate your debts or renegotiate your payment plan to get back on track.

4. Be a smart customer:

   Boost your credit score by paying bills on time, reducing credit card balances and disputing any errors on your credit report. Showing a good track record will help you access lower-cost borrowing in the future should you want to take out a mortgage, for example.

5. Maximise your potential:

   Can you increase your income by securing a promotion, asking for a raise or doing some extra work? This will help you pay off debts and save for the future. Make sure you’re getting the right rewards for your efforts.

6. Open up to friends:

   Be honest with your friends that you’ll need to do activities that cost no or little money. Instead of going out for dinner, you can cook together at home. Being upfront with this will make it easier for you and your friends to come up with social activities that both of you can afford. 

7. Stash the cash:

   If you have any extra money, start saving. Even a small amount a month will add up in the long term and saving is one of the best financial habits to master. E.g. if you skip a takeaway latte one day, save that money. Ideally, focus on building an emergency fund with enough savings to cover three to six months of living expenses. 

8. Future proof:

   Think about investing for the long term, whether through pensions or other investments. Be proactive about your financial wellbeing by reviewing your finances regularly. Reading books, taking classes, listening to podcasts or working with a financial adviser helps you to keep up with economic trends and will increase your financial knowledge. This in turn will help you make more informed financial decisions.
    

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