Sweating over your summer spend? Plan your budget ahead

Estimated reading time
  6 min

In this article

• Plan your budget early to avoid overspending
• Practice mindful spending and energy efficiency to save money
• Manage holiday expenses with smart planning and deals

Summer is here, and while we all deserve some indulgence, it doesn't have to lead to debt.

With the right approach, you can get the most out of summer while keeping your finances in check. Here are some clever budget ideas and easy ways to reduce your expenses, plus some interesting facts to think about while you soak up the sun. Pass the sunscreen, please!

Plan your budget

Sounds boring, but it doesn’t have to be! A couple of hours spent planning your budget now will start your summer and upcoming year off right. Remember, it’s not how much you have, it’s how you manage it.

Wants vs. needs

It’s hot, and you really, really want that second summer spritz. But do you need it? Differentiating between wants and needs can make or break your budget. Striking a balance requires some thinking and pre-planning. Start by reviewing your latest bank statement and categorising expenses into wants and needs based on your annual plans. It’s all about striking a balance.

Do the 50-30-20 budget

Boy, do we love this budget hack. Based on percentages and not how much you earn, the 50-30-20 budget will help you decide where your financial priorities lie. Divide your income: 50% for needs (rent, bills, debts, food), 30% for wants (concert tickets, fine dining) and 20% for savings. Keep in mind, if getting out of debt is more important than fun in the sun over the next few months, you may want to funnel a portion of your savings into its own debt bucket temporarily. The important thing is you divide your expenses in a way that makes sense to you and your situation.

Review early and often

Once you’ve created a summer budget, don't just set and forget. The best budget can easily blow out without monitoring. Use your transaction history or a spending tracker (like ANZ Spendi in the ANZ App) to track daily expenses. Sticking to your budget week-on-week? A gold star on the fridge is surprisingly rewarding. And as the season changes, so might your budget. So, use that time as an opportunity to give your budget a spring clean.

Clever budget ideas to reduce your expenses

Mindful spending

Mindful spending is about being aware of where your money goes and making conscious choices that align with your values. It’s not about deprivation but rather about spending on what truly matters. For instance, instead of buying a coffee daily, invest in a quality coffee machine and make your own at home. This change can save you hundreds of dollars over the summer.

Buy gifts during sales

Make a list months in advance and purchase presents (whether for Christmas, weddings, birthdays, or other occasions) early and when they’re on sale. This way, you’ll not only save money, but also avoid last-minute stress and scrambling. Remember, some gifts don’t cost money, like flowers from your garden and babysitting vouchers.

Embrace the sharing economy

The sharing economy has grown significantly in recent years, offering a range of services that can help you save money. From car-sharing services to accommodation rentals, there are plenty of ways to cut costs. The sharing economy contributed over $15 billion to the Australian economy in 2024, according to the Australian Bureau of Statistics. By getting into it, you can enjoy shared resources and keep expenses in check.

Energy efficiency

Summer often means higher energy bills due to increased use of air conditioning. You can reduce your energy consumption by making your home more energy efficient. Simple actions like using energy-saving light bulbs, sealing gaps around windows and doors, and using fans instead of air conditioning can make a big difference. The Australian Government’s Energy Rating website has some useful tips and information on how to improve your home’s energy efficiency.

Managing holiday expenses

Summer holidays often mean higher spending. Here are some tips to help you manage your expenses without breaking the bank:

• Plan ahead: Book your travel and accommodation well in advance to take advantage of early bird discounts and special offers.
• Budget, budget, budget: Allocate a specific amount for your holiday expenses and stick to it. This includes travel, accommodation, food, and activities.
• Look for deals: Use comparison websites and apps to find the best deals on flights, hotels, and activities. Consider using loyalty points or rewards programs to save on travel costs.
• Travel off-peak: If possible, plan your trip during off-peak times to avoid higher prices and crowded destinations.
• Pack smart: Avoid paying for extra baggage fees by packing efficiently and only bringing the essentials.

Interesting facts and statistics

Household debt

• Household debt in Australia reached a record high of 190% of disposable income in 2024. This means that for every dollar of disposable income, households owe $1.90 in debt. Managing your summer spending can help you avoid contributing to this growing statistic.

Cost of living

• Cost of living increased by 3.5% in 2024. This rise was driven by higher prices for housing, food, and transportation. By being mindful of your spending and sticking to a budget, you can better manage the impact of these rising costs.

Savings rate

• The average savings rate for Australian households was 4.5% in 2024. While this is an improvement from previous years, it’s still important to prioritise saving and ensure you have a financial cushion for unexpected expenses. 

Data source: Australian Bureau of Statistics

In a nutshell

By following these tips and being more intentional in your spending, you can enjoy a stress-free summer without blowing all your cash. Remember, it’s all about balance and making choices that align with your financial goals. So, go ahead and enjoy the sunshine, knowing that you’ve got your finances under control.