Ways to Winter-proof Your Finances and Unlock More Money to Save

We often spend time winter-proofing our cars to reduce the risk of breaking down or ending up stranded. 

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The same can apply to your personal finances. With a little foresight and some tweaks here and there, you can ease the burden that comes with the often more expensive winter months. 

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What makes winter more expensive?

During the winter, we spend more time indoors, which usually means using more energy in order to keep the lights on and the rooms warm. This alone is enough to warrant some good winter financial planning. Add in gifts and gatherings around Christmas, and the costs can quickly stack up.

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Check your energy tariff

While it might be too late to make a significant difference this year, checking your energy tariff to make sure you’re not paying more than you need to, should be step number one.

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Most providers will offer various tariffs, each with its own pros and cons. It often comes down to how you prefer to split up your energy payments, and whether you want a variable or fixed tariff (sort of like a mortgage).

A fixed energy tariff is an energy pricing plan where the rate (cost per unit of electricity or gas) is locked in for a set period, typically between one and three years. 

It doesn’t mean that you pay less overall, but having credit on your account which you’ve built up over the warmer months can provide some relief.

A variable energy tariff is a type of energy pricing plan where the cost per unit of electricity or gas (measured in pence or cents per kilowatt-hour) fluctuates according to market conditions. This kind of tariff can give you a more accurate and consistent picture of your spending throughout the year, but also means that your bills can rise suddenly with rising energy prices.

The team at MoneySavingExpert have some great in-depth resources dedicated to helping you decide whether switching tariffs is right for you.

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Reducing your outgoings: Food bills

The winter months can actually help you to save on your food bill, since the cold weather lends itself to hearty meals with plenty of leftovers. 

Take some time to browse for recipes that appeal to you, and plan your grocery shopping around them. It’s also worth checking out online supermarkets that offer delivery. Many offer discounts on your first couple of shops. Switching between them can save you a decent amount over a couple of months.

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Gym membership

If you’ve been going to the gym frequently during the warmer months, but are now skipping sessions due to the cold weather and shorter days, consider downgrading your membership until the spring returns. 

You can always program some home workouts so that your fitness stays on track, while using the cash for your savings and investments. 

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Mindful spending

Don’t feel obliged to spend more than you can afford on gifts for people. Unless they’ve specifically asked for something, most people are fine with receiving something small, and will understand if you explain to them that you’re prioritising your finances. 

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If you are buying gifts, consider buying them earlier than you normally would, giving yourself time to rebuild your cash balance before the Christmas chaos. This might also save you money with pre-christmas sales. 

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Start earning on your savings

The sooner you start saving, the sooner you’ll start earning. It doesn’t matter how much or how little you start with. What matters the most is getting started. 

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Our GB Base Rate Tracker Savings Account tracks the Bank of England base rate (less up to 50 bps), helping you to stay in line with current interest rates. You can access your money monthly, and interest is paid daily, so you can watch your money grow.