Do you ever feel like certain times of the year just drain your wallet more than others? Anticipating and managing seasonal expenses can be challenging, but with a little planning and creativity you can keep your finances in check while enjoying various activities throughout the year. Whether it’s summer outings or winter relaxation, here we outline some points on how to budget effectively.
Anticipating Seasonal Costs
Start by reviewing your past spending to identify high-expense periods, such as summer holidays, back-to-school shopping, or the festive season.
Create a calendar of these anticipated costs and set aside a little each month. This way, when the kids are eager for outings or special events, you’ll be financially ready.
Saving During High-Expense Periods
When high-cost seasons approach, it’s time to tighten the belt without losing the fun:
- Holidays: Start gift shopping early and stick to a budget. Experiences often make better gifts than things—think about a family membership to a local attraction or a voucher for a meal at a café.
- Back-to-School: Shop during sales, buy in bulk, and consider second-hand uniforms and books.
- Seasonal Activities: Seek out free or low-cost local events, like community markets or outdoor concerts. Enjoying nature can be a great, budget-friendly adventure. The Peninsula has plenty of beautiful spots for family adventures that won’t cost a cent.
Budget-Friendly Activities (that won’t break the bank!) - Summer: Pack a picnic and head to a park, explore local markets, or hike through the Mornington Peninsula National Park.
- Autumn: Take in the autumn colours at Cranbourne Royal Botanical Gardens, enjoy a scenic drive or take a free walking tour and discover Frankston’s hidden art with the Street Art Explorers Program: www.imaginefrankston.com.au/street-art-explorers
- Winter: Rug up and watch the waves at one of the peninsula’s many beautiful surf beaches. Then, to defrost, enjoy a cosy movie night at home with hot chocolate and homemade snacks.
- Spring: Plant a garden together, explore McClelland Sculpture Park and Gallery, or go for a family bike ride along the Peninsula Link Trail.
Adapting to Income Variability
If your income fluctuates, adjusting your budget can help smooth out the bumps. During high-income periods, focus on saving and paying down debt. Build an emergency fund to cover expenses during leaner months. Track your spending closely and be ready to make adjustments as needed. Finding additional income sources, like seasonal work or side gigs, can also help bridge the gap.
Reviewing Your Home Loan for Financial Flexibility
One effective yet often overlooked strategy is reviewing your home loan. Interest rates change, and refinancing your home loan could save you significant money each month. Consider speaking to a mortgage broker to explore better deals or more flexible terms that suit your financial situation.
By staying proactive and making small adjustments, you can keep your finances in check while enjoying a variety of activities, no matter the season. Remember, a little planning goes a long way in ensuring your family’s financial well-being.
Switching to a home loan with a lower interest rate or features like an offset account or the ability to make extra repayments without penalties can provide more financial breathing room, especially during high-expense periods.
Jo and Carl Violeta are self-confessed numbers nerds, parents of an energetic toddler and a super switched-on teenager, and co-founders of the award-winning business, Violeta Finance. They are a husband and wife team who are passionate about empowering their community with financial education, love the odd glass of wine, and get a kick out of helping families achieve their homeownership and financial dreams.
www.violetafinance.com.au