Mid-Year Money Makeover: How to Keep Your Finances on Track This Summer

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Summer is here, and with it comes a chance to kick back, enjoy the sun, and maybe finally take that holiday you’ve been dreaming about. But just because we’re in the middle of the year doesn’t mean we should put financial planning on hold. In fact, summer is an ideal time to review your finances. You’re far enough into the year to have a good sense of your financial patterns, yet there’s still plenty of time to make adjustments before the year ends.
If the idea of budgeting on a beach sounds less than thrilling, don’t worry! You can keep this check-up light and straightforward, focusing on a few small but significant areas. Let’s look at how to enjoy the summer while setting yourself up for a stronger financial future.

 

Reflect on Your Year So Far

The first step in your summer check-up is to review your progress and see where you currently stand. Ask yourself a few questions:

• Are you on track with any financial goals you set back in January?
• Have you managed to save as much as you planned?
• Are there any spending habits that have changed since the start of the year?
• Have there been any significant events or lifestyle changes or this year that could impact your financial goals or plans?

 

Summer is the perfect time to get a fresh perspective. This could involve reviewing your bank and credit card statements, checking in on your savings accounts, or reassessing any financial goals that may have changed. The insight you gain here will set the stage for making any necessary adjustments.

 

Revisit Your Budget for Seasonal Expenses

The warmer months bring unique spending opportunities – and challenges. From festivals and weddings to holidays and outdoor activities, it’s easy for summer fun to take a bite out of your wallet. Review your budget with these expenses in mind and plan ahead for any big-ticket events. A few tips to keep your spending in check this season:

• Plan free or low-cost activities. Look for local events or outdoor activities like picnics, beach outings, or hikes. Summer offers plenty of entertainment that doesn’t break the bank.
• Use apps to track spending. With budgeting apps becoming more popular, it’s never been easier to keep an eye on your spending in real-time, helping you avoid going overboard.
• Set a ‘summer fun fund’. Having a separate, small fund just for summer spending can help you enjoy the season without guilt, as you’ve planned for it ahead.
• Allocate funds for annual events. Begin setting aside funds now for year-end events like holidays and Christmas to avoid last-minute financial stress.

 

 

Boost Your Savings (Even If Just a Little)

One of the most effective ways to make steady financial progress is by setting small, achievable savings goals, and summer is an excellent time to do just that. If you receive a holiday bonus or tax rebate, consider putting a portion of it into savings rather than spending it all on immediate gratification. A few easy ways to bolster your savings:

• Round-up savings. Many banking apps allow you to round up your purchases to the nearest pound, depositing the difference into your savings account.
• Challenge yourself to a ‘no-spend weekend’. Set aside one weekend a month to avoid any non-essential spending. The savings may just surprise you.
• Automate. Set up an automatic transfer from your current account to your savings account for a specific day each month (payday is often best). You’ll be building up your reserves without thinking about it.
• Divert windfalls to savings. Consider directing any windfalls like a bonus from work or smaller things like competition wins, cashback rewards or refunds, straight into your savings account to increase your reserves gradually.

 

 

Strengthen Your Insurance and Protection Plan

While the warmth of summer encourages us to enjoy life, it’s also a great time to ensure we’re prepared for unexpected circumstances. Insurance is essential in securing your financial future, so consider taking a fresh look at your current coverage. A comprehensive insurance review will help safeguard your family, health, and income against life’s uncertainties.

• Protect your income. Income protection insurance can replace a portion of your income if you’re unable to work due to illness or injury. This is a particularly wise choice if you’re the primary earner in your household, as it can help maintain your financial stability in challenging times.
• Check life insurance policies. Life insurance provides financial support to your loved ones in the event of your passing. Ensure your policy is updated to reflect any changes in your family structure, such as new children and assess if you have adequate coverage.
• Consider critical illness cover. This type of insurance provides a lump sum if you’re diagnosed with a serious illness, helping to cover medical costs or living expenses during recovery. Evaluate whether this cover aligns with your healthcare needs and financial goals.
• Build an ‘emergency fund’. In addition to insurance, set aside funds equivalent to three to six months of living expenses to act as a financial cushion. An emergency fund can be invaluable if unexpected costs arise, providing flexibility without needing to dip into savings.
• Don’t forget travel insurance. If you’re planning a holiday this summer, travel insurance is a must. It covers a range of unexpected events, from trip cancellations to medical expenses abroad, offering peace of mind while you explore new places.

 

 

Audit Your Subscriptions and Recurring Expenses

With the fast pace of life, it’s easy to lose track of subscriptions and direct debits that quietly chip away at your finances. Summer is perfect to have the time to audit these expenses and decide what’s still worth keeping.

• List and evaluate subscriptions. Go through your bank statements to identify all active subscriptions, then ask yourself if you’re truly getting value from each. Many services offer temporary pauses if you’re unsure about cancellation.
• Check insurance policies and utilities. Summer is also a good time to look over any insurance policies you might have and review your utility bills to make sure you’re not paying more than necessary. Shopping around for better deals can lead to big savings.
• Look out for monthly or annual renewals. Many services auto-renew each month or annually. Set calendar reminders to review these before renewal dates to cancel or negotiate lower rates.

 

 

Review Your Investment Portfolio

Markets fluctuate year-round, so it’s always wise to check your investments. While you don’t need to make dramatic changes every summer, a mid-year portfolio review ensures that your investments are still aligned with your goals and risk tolerance. Things to consider could include:

• Review performance against benchmarks. Compare the performance of your investment portfolio against suitable benchmarks to see if it’s meeting expectations or if adjustments are needed.
• Ensure suitable diversification. If you find your investment portfolio is heavily weighted in one area, consider reallocating assets to create a more balanced portfolio.
• Check the charges you are paying. Review the charges associated with your investment accounts and platforms. Charges can range from annual fund fees to platform management charges, which can eat into your returns over time. Look for lower-cost funds and platforms if charges seem excessive, as these small costs can add up.
• Consider consolidating. If you have multiple investment accounts, consolidating them can simplify management, reduce charges, and help you track your overall asset allocation more easily. Before consolidating, it’s important to check for any potential exit charges and make sure you’re not losing valuable perks or benefits associated with certain accounts.

 

 

Plan Ahead for End-of-Year Tax Efficiency

Though the tax year-end next April may seem a long way off, summer is a surprisingly good time to start planning. Investing in tax-efficient accounts like ISAs (Individual Savings Accounts) or contributing to pensions can offer both immediate tax advantages and long-term financial growth. Things to think about include:

• Using your ISA allowance. Up to £20,000 in ISA contributions each tax year, and investing in an ISA can protect your savings from income and capital gains tax. You can also invest tax efficiently in Junior ISAs for children or grandchildren.
• Consider pension contributions. Contributions to your pension are tax-efficient and may qualify for government top-ups. Plus, by starting now, you can make sure you’re making the most of your annual allowance.
• Review and utilise capital allowances. If you have ‘unwrapped’ investments (those not held in tax-efficient products like ISAs or pensions) it may be worth considering utilising your Capital Gains Tax allowance.
• Gift to reduce potential Inheritance Tax. Consider making tax-free gifts within your annual gift allowance to reduce future Inheritance Tax liabilities.

 

 

Set New Goals for the Remainder of the Year

Now that you’ve got a good sense of your financial standing, take some time to set fresh goals for the remainder of the year. Whether you aim to save for a holiday, pay off a debt, or increase your retirement contributions, setting specific, measurable goals can keep you motivated. A few ideas:

• Pay down debt. Focus on high-interest debt first, setting a plan to make regular payments.
• Set a small splurge goal. Saving isn’t all about denial; planning for a future splurge can make budgeting easier and keep you focused on your broader financial picture.
• Assess personal development goals. Personal growth goals like training or skill acquisition can benefit your long-term finances and increase career prospects.
• Plan for 2026. Start thinking about any major expenses or changes you anticipate next year and create a plan now.

 

 

Stay Focused, But Enjoy the Summer Season

A proactive summer check-up of your finances means you’re not just preparing for the rest of the year – you’re ensuring a smoother financial journey for years to come. Whether you’re reassessing spending habits, reviewing your investments, or setting up an emergency fund, each action brings you closer to achieving your financial goals. Summer’s relaxed pace can be a golden opportunity to tackle financial tasks you might otherwise overlook, making it a perfect time to plan for the future while enjoying the present.

Managing expenses and identifying areas to save is just one piece of the puzzle. Making sure your investments are aligned with your goals, taking a close look at the charges you are paying and thinking about consolidating accounts if needed can help streamline your financial landscape. Adjustments made now, however small, can help you enter the second half of 2025 with renewed financial confidence, giving you more control and flexibility over your resources.

So, as you head into the heart of summer, consider carving out some time for a mid-year financial review. You’ll find that even minor changes can have a big impact on your overall financial health, freeing you up to enjoy your holiday plans or invest in new experiences without worry. Seize this opportunity to check off a few financial tasks and reward yourself with peace of mind – knowing that, come autumn, you’ll be one step closer to meeting your goals.

 

If you would like to talk about any of the issues in this article or need more general help with your finances, please get in touch with us.

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