Are Bank Holidays A Blessing or a Cash Curse?
Bank holidays signal the start of the summer months and warmer weekends for many Brits however, longer weekends often result in more spending for most.
Sales of furniture, gardening and DIY items surge as much as 15% resulting in a greater dent to personal finances during bank holidays, as Brits use the extra day off to meet friends and family and tackle home improvement jobs.
While enjoying the extra day off work is important, Stacey Lowman, a financial coach at Claro Money says, “Brits should remember their long-term savings goals before breaking the bank this bank holiday. With so many bank holidays clustered together in the summer months, combined with many people planning their annual summer holiday, it is easy to overspend and leave yourself short for future months.
“Research shows that 41% of high earners – those earning £40,000+ – have been living beyond their means at some point over the last 12 months. This highlights that everyone should adopt a smart money mindset and plan ahead when it comes to their finances. However, the same research shows almost one in three (29%) of 18 – 30 year olds don’t use a budget to manage their income and expenditure.”
The extra bank holiday, this year, for the Queen’s Platinum Jubilee, could be the tipping point for many people’s budgets, therefore Claro Money’s personal finance expert, Stacey Lowman has shared some tips for mindful spending.
Look out for online deals and book ahead
Going out out doesn’t have to mean overspending! Whether it’s indulging in a three-course meal at your favourite restaurant, or going for cocktails with your friends, either can get pricey. So, be savvy this year by checking the restaurant or attraction’s website and see if they have any deals or discounts. This may involve opting for a set menu or booking 24 hours in advance for an online exclusive price but means your socialising won’t stunt your savings.
Seize the day within the UK
Bank holidays are a popular time of year to enjoy a quick getaway, and while this is a great way to spend a long weekend, it’s not always a cheap option. While some holidaymakers enjoy a city break to destinations such as Lisbon, Amsterdam, and Budapest, it can be cheaper to visit UK destinations. Be sure to search the internet to find the best deals, and travel to where your heart leads you, whether that may be culture in the capital or devouring fish and chips in Devon.
Start a socialising fund
Sometimes, we all spend a bit more than planned, and that’s fine as long as it doesn’t derail your longer-term budget or savings goals. As always, prevention is better than the cure, and by creating a separate ‘bank holiday fund’ or socialising savings pot throughout the year means your monthly budget remains unscathed, even through the sunny bank holiday weekends.
