Five tips to help you save money this summer

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The weather in the UK may not have got the memo, but it is officially summer. And although the warmer months tend to be filled with fun activities like trips away, beer gardens and barbeques, the costs of a busier social life can add up. So here are five tips to help you keep up with your spending this summer.

1. Automate your savings

Find yourself dipping into the money you planned to save when payday starts to feel a little out of reach? We’ve all been there. But doing it for a few months in a row can start to chip away at the progress you’ve made towards your goals. 

Instead, an easy way to prioritise your savings is to automatically put them aside on the same day you get paid – that way you’re not tempted to spend them later in the month.

You can usually do this by setting up a standing order online with your bank, then you don’t even have to think about it.

Just make sure you’ve got left enough in your account for any bills or other important outgoings that month.

2. Make the most of lower energy bills

When temperatures are higher and the sun is up for longer, we spend less on heating and electricity, and our household bills can come down. And, considering the high cost of energy over the last few years, you might find that it makes a fairly big difference to your monthly outgoings.

Instead of leaving any extra money in your bank account and spending it later, think about adding it to your savings as a little extra boost

3. Pause unused memberships

In general, we tend to be a bit busier over the summer. So you might find that you’re not getting as much use out of your monthly subscriptions as you usually would – whether that’s your gym or class membership, a recipe delivery service or an entertainment subscription for podcasts, TV or audiobooks.

A lot of subscription services will let you pause rather than cancel them. Meaning you might find you’d be better off pausing some of them for a few months if you won’t be using them enough to make the most of the cost.

4. Make a summer budget

The best way to make sure you stay on track with your spending and saving is to make a budget – and you might already have one. But it’s not a bad idea to consider adjusting your budget over the summer to accommodate your change in lifestyle.

For example, let’s say your budget is usually a classic 50/30/20 split – that’s 50% on your needs, 30% for your wants and 20% to your savings. You could think about changing this for the summer months, so you put a little more towards your wants and a little less towards your savings. 

It might sound counterproductive, but being unrealistic with your budget can lead to overspending, and that could mean you don’t end up saving at all.

5. Be smart with where you put your money

Sometimes it’s not just about how much you save, but what you do with the money you save. 

For example, with interest rates still on the higher side just now, you might be able to get a generous rate on a cash ISA or other savings account. So if you’re saving for a shorter-term goal like a holiday or a car, then it’s worth considering if something like this could make your money would work harder for you.

On the other hand, if you’re saving for a longer-term goal (typically five years away or more) like retirement, then putting any savings into a pension plan or a stocks and shares ISA could be a better option. That’s because when you invest your money, you give it the opportunity to grow over time. Just keep in mind that investment growth isn’t guaranteed, and you can’t normally access the money in your pension until you reach age 55 (57 from 6 April 2028).

You can read more about saving for some of life’s big goals in How to save for milestones.

The information here is based on our understanding in July 2024 and shouldn’t be taken as financial advice.

Pension plans and some types of ISAs are investments. Their value can go down as well as up and could be worth less than was paid in.