‘Brat summer’ has taken over social media, signalling a season of fun, letting loose and creating lasting memories.
It can be tempting to splurge on every whim and fancy. But what about the future? Here’s how you can enjoy a brat summer and still save responsibly for the future you deserve.
1. Set a summer budget
You want a budget that allows you to enjoy yourself while still setting savings aside. Allocate a specific amount for summer activities.
Tips for budgeting
- Track your spending: use apps to monitor your expenses in real time.
- Prioritise your activities: decide what things you like to do best and budget for those.
- Pay yourself first: set money aside for your financial goals – like your pension. Putting in extra money on top of your usual payments is a great way to make sure you’re looking after your future self.
2. Automate your savings
One of the easiest ways to make sure you’re saving for the future is to automate your savings. Set up regular payments into your savings and investments. That way, part of your income goes directly to your future self before current you has a chance to spend it.
Auto enrolled in a workplace pension? You’re well under way!
Why automate your savings?
- Peace of mind: knowing your future is being taken care of allows you to enjoy the present brat-style.
- Regular growth: regular payments help your savings grow over time.
- Growth on top of growth: pay in regularly and you benefit from compound interest – growth on top of growth – growing your savings faster.
3. Make the most of your workplace pension
If your employer offers a workplace pension, stay in it if you can! Your employer pays in as well as you – that’s free money! And if you earn over the personal allowance, you’ll get tax relief – money from government.
How to make the most of your pension
- Max your payments: pay in as much as you can afford. Your future brat self will thank you!
- Get to know your pension: check how much you pay, how much your employer pays, how your pension works and how much you’ve built up so far. This can help you aim better for your retirement goals.
- Consider putting your pensions together: if you’ve had more than one job, chances are you have more than one pension. Bringing your pensions together can make your pension savings easier to manage. You’ll be able to see how much you’ve got, you’ll probably pay less in admin fees and your money benefits from investment returns. Learn more.
It can be hard to set aside money when we’re in a cost of living crisis. Have a look at our article on cost of living and paying into your pension for some different perspectives.
4. Find cost-effective fun
Having a brat summer doesn’t mean you need to break the bank. Look for cost-effective ways to have fun.
Budget-friendly activities
- Get outdoors: hiking, camping and beach trips can be exciting and inexpensive.
- Embrace your community: look out for free or low-cost events in your community like festivals, concerts and markets. If you’ve got the time, check if they need volunteers!
- DIY: host a picnic, BBQ or game night.
5. Plan ahead
Planning ahead can help you enjoy your brat summer while keeping your future in mind. Book trips and activities in advance to take advantage of discounts and early-bird rates. This can save you money and help you stick to your budget.
Planning tips
- Research deals: look for travel deals, discount passes and package offers.
- Create an itinerary: plan things like travel in advance to avoid costly last-minute decisions.
- Set goals: what do you want to achieve? Have clear financial and personal goals for the summer – and the future.
A brat summer doesn’t have to mean neglecting your future self. Follow our easy tips and enjoy your summer, while still saving for the future you deserve.
The information contained in this article is for general informational purposes only. It does not constitute investment, legal, pensions or tax advice and reflects, as of the date of publication, the views of now:pensions and sources believed by now:pensions to be reliable. The views expressed in this article, or any factual information contained within, may change at any time subsequent to the date of publication.
