Navigating your financial future in hospitality

Finances can be difficult to manage in the world of hospitality, but with proper planning and making use of the tools available to workers, navigating your financial future can be made simple, says Camilla Woods, Services Director at UK charity Hospitality Action.

Working in hospitality is fast-paced, rewarding and full of variety — but that variety can also rear its head when it comes to finances. Seasonal peaks and troughs, changing shifts and fluctuating tips can make managing finances unpredictable and difficult to stick to a financial plan. For many hospitality professionals, this means living month-to-month without a clear strategy for saving, investing or preparing for the future.

With that said, there are steps hospitality professionals can take to feel more in control of their money and better navigate a course for a financial future they want.

Plan for seasonal fluctuations

In one of our recent Employment Assistance Programme (EAP) webinars, we discussed the importance of looking ahead and forecasting your expected income over the year. While this can change based on seasonal fluctuations, you can typically expect to earn slightly more during key periods of the year, such as summer, and slightly less during quieter periods.

Try and estimate month by month what you might be earning and put as much as you can away in the good months beyond what you actually need. This will allow you to better support yourself during the months when you may have less income.

Work out your baseline

When it comes to saving, it can help to work out your baseline cost of living, essentially how much you need to spend on non-negotiables such as rent, food and bills.

Once you know how much you need to get by, it can be easier to save surplus income during busy months to create a buffer for quieter periods.

It can also be useful to automate this where possible, such as setting up an auto-send each month so that money goes into a separate pot. Making the saving non-negotiable means you are more likely to stick to it and build the habit of saving where you can.

Check your payslip

Did you know that one in four workers don’t check their payslips monthly? It’s a good habit to check each of your payslips when they come through to ensure you are being paid correctly. Mistakes can happen, and if missed could result in you missing out on income you’ve worked hard to earn.

When reviewing a payslip, the first thing to do is to look at the breakdown of the payment, is it higher or lower than what you expect?

If you think something does look wrong, a good place to check is your tax band. Incorrect tax bands can cause workers to potentially pay more tax than they need to. If you’re ever in doubt of what tax band you should be in, the government’s website has a helpful guide.

Other useful areas to check are your National Insurance category letter, as well as how much of your salary is going into your pension if you have one.

Saving for the long term

If you have a long-term saving goal in mind, such as buying a house, it’s important to ensure you are using the best saving tools possible to make your savings work harder.

For first time buyers, save your money in one of the many schemes available such as a Lifetime ISA, which allows you to save up to £4,000 a year and receive a 25% bonus from the government too.

I also recommend looking at your own local council schemes and seeing what support is available when it comes to getting on the housing ladder, as these can vary between councils but can be very useful for first-time buyers.

Treat Yourself

And finally, while saving and planning for the future is important, so is treating yourself every once in a while. Everyone has bills to pay and unexpected costs, but people also need the freedom and to not have the guilt of spending money on themselves.

Enjoying your money doesn’t have to mean splurging, but a meal out with friends, a weekend trip or investing in a hobby are not just ways to reward yourself, but essential for maintaining a healthy work-life balance and supporting your overall mental health and wellbeing. The key is to plan for these expenses, rather than feel guilty afterwards. When they’re part of your budget, you can savour them — knowing you’re still meeting your savings and bill obligations.

Ultimately, managing your money is about finding a balance that works for you. By forecasting your income, building healthy habits, making the most of support schemes and giving yourself permission to enjoy some of what you earn, you can turn financial uncertainty into a successful financial future. The peace of mind and confidence that comes from taking control to gain financial clarity is not to be underestimated.