Financial Planner Eoin McGee shares his top tips for saving and borrowing this summer.
"You can really help yourself out by taking 20 minutes, sitting down, and writing down the expenses you're going to be hit with," Eoin McGee says of summer planning.
The Certified Financial Planner, broadcaster and columnist says that figuring out the structure of the coming months is essential for budgeting, whether it be holidays abroad, day trips at home, or booking summer camp for the kids.
"The first step is identifying them," he says of expenses, noting that early booking for things like summer camps could save you money, as most activities are more expensive at the last minute.
Summer plans
If you've decided a summer holiday abroad is out of the question, the financial planner suggests researching day trips near your home that won't entail overnight accommodation or dinners out.
As he puts it, most of our most cherished childhood memories are of trips to the beach, climbing trees in the park, and picnics in the garden - and they cost little to nothing at all.
If you've already paid for the deposit on the holiday and are set on going away, the most important step is to recognise now if you're going to have to borrow.
For example, if you are going away in ten weeks and want €1,000 put aside, you need to start saving €100 a week. If you can't afford that, it's a sign that you will need to take out a loan - and the sooner the better.
"The later you leave that loan application, the more expensive it's going to be," explains McGee. "That's the rules when it comes to lending."
Saving & Borrowing
Even if you are getting a loan, though, help yourself out by saving anything you can in the lead-up to your trip.
"Even if you save a tenner a week for the next ten weeks, you're going to have €100, which means you're borrowing 10% less than you would have had to borrow," he says.
Another golden rule? The easier a loan is to get, the more expensive it will be.
"Sticking it onto the credit card will be very expensive, whereas if you know you're going to borrow for the holiday, get your application into the credit union now."
"Do the simple things right, repeatedly," he adds. "It doesn't matter how small it is, anything is better than nothing."
Summer Savings
If you don't have a tenner to spare each week, now could be a great time to look at where some hidden savings could be found throughout the household.
For example, do you need all the streaming services for the summer, or can you cancel them and pick them up again when the evenings get darker? Could you pop onto CRU.ie and switch your suppliers to save money?
"You can save considerable money, but if you don't do anything with that work, Parkinson's Law kicks in, your new lifestyle expands to fill the new money that you have."
Parkinson's Law states that "work expands so as to fill the time available for its completion." This means that if you have an hour to cut the grass, it will take an hour to cut the grass. If you have two hours to cut the grass, it will take two.
According to McGee, the same rule applies to money; whatever you have in your pocket will likely get spent - no matter if it's €20 or €200.
The lesson here is to pop any new savings into your savings account, a shared 'vault' or even pop cash into an envelope so that it doesn't just disappear.
There may even be savings to be made thanks to the warmer weather.
For example, if you have been drying clothes out on the line instead of the tumble dryer in recent weeks, you have likely saved a few quid without realising it - grab that money now and put it to good use.
Likewise, if you aren't putting your heating on quite as often, that money could be put aside for summer plans or even planning for next winter's bills.
"Recognise that the little things done right have big results over long periods of time," he insists. "It's worth putting the effort into the little things."
Financial Lessons
If you have kids, it's more than likely that some money will have to go towards keeping them entertained during the summer months.
If they are old enough to understand the concept of costs, now is a great time to involve them in the spending.
For example, if you have two children and €100 for spending, you can tell them that there is €50 for a group event and €25 each for their own spending.
"It's really important that they get to spend their own money, but there's also shared money that needs to be agreed on and collaborated on how it's being spent," he explains.
"It's individual thinking, so they can stand on their own two feet, but also making them consider others and negotiate on all that stuff."
By planning ahead, you allow children to feel empowered in making their own choices, and you give them the chance to anticipate and enjoy their chosen activity.
"I'm a big believer that life is about experiences, not things," says McGee. "For me, an experience is the anticipation of it, the experience itself, and then the memory of it."
If you're looking for more financial advice, Eoin McGee will be bringing his live show, How to Tackle Your Finances, to Gleneagle Club, Killarney on 16 May and The Everyman, Cork on the 27 May.
