Winter always seem to be the hardest time of the year to save up, with energy bills increasing as the heating is on more and everyone going spend crazy in the run up to and over the Christmas period. With TrustTwo reporting that interest rates are now at a record low, managing savings looks set to be even trickier over winter this year. There are a number of ways to efficiently manage savings over the colder months to ensure you have plenty to spend once the warmer weather comes around again.
Budget for Christmas
December is arguably the most expensive month of the year for a lot of people, unless they go on a costly summer holiday. Many people go a little bit overboard at this time, spending more than they can afford on presents, food, drink and other festivities, before realising their mistake when their bank statement comes through the next month.
To avoid blowing a lot of your savings in winter, it is important that you draw up a solid budget. Decide how much to limit yourself to when buying presents, the Christmas dinner and any festive night outs you go on. This should prevent you digging deep into your savings when it could be easily avoided.
Cut Heating Costs
Savings can take a big hit if it is a really cold winter, as people turn the heating up more and energy costs increase. There are various ways to save energy and money in winter, from simply putting on an extra jumper to unplugging electronics when not in use.
When it comes to putting up Christmas lights, use energy-efficient LED bulbs instead, and set a heating timer so your home warms up in anticipation for your return. These and many more energy saving tips will mean you don’t dip into your savings to afford heat and light over winter.
As well as budgeting for the winter period, to manage savings as a whole, it is a good idea to track all your spending. Monthly costs such as energy bills, car insurance, phone charges and more can be expected, but there will be some added ones for winter.
There are many free apps for tracking spending that can be used. It is useful to do so, in order to predict what impact winter spending has had on your savings and how you will prepare personal finances for the new year. This should help you adequately manage savings over the winter period.