Do high temperatures turn heat on your finances too?

Updated: 11 May 2023, 08:30 AM IST

Summers cannot only keep your mind heated all the time, but it can also put a fire on your finances as well. In this article we will make you understand about the impacts of heatwaves on your finances.

Droughts and extreme heat can damage crops and reduce yields, which can drive up the cost of fruits and vegetables.

Either it is a basket of fruits and vegetables to the basket of investments, everything can affect your finances in the heat waves of summer. You already know about your moods in the hot season, let’s understand a bit about finances as well and what you can do to manage these expenses for a longer period of time.

Here are five ways how heat waves are affecting your personal finances-

Increased energy bills: During heat waves, people tend to use more energy to cool their homes and workplaces. It can lead to higher energy bills, which can strain your budget. To mitigate the impact of increased energy bills, you can take steps to reduce your energy usage, such as using fans instead of air conditioning or setting your thermostat a few degrees higher.

Higher food prices: Heat waves can also affect food prices, particularly for fresh produce. Droughts and extreme heat can damage crops and reduce yields, which can drive up the cost of fruits and vegetables. To keep your food costs under control during a heat wave, you may need to be more strategic about your grocery shopping, opting for frozen or canned produce, or looking for deals and discounts.

Reduced productivity: High temperatures can make it difficult to concentrate and stay focused, which can reduce productivity at work. If you're self-employed or have a job that's paid hourly, reduced productivity can translate to lower earnings. To stay productive during a heat wave, you may need to adjust your schedule or work location, such as working from home during the hottest part of the day.

Damage to property: Heat waves can also cause damage to property, particularly if you live in an area prone to wildfires or drought. Damage to your home or vehicle can be expensive to repair, so it's important to take steps to mitigate the risk of damage, such as maintaining your property and being prepared for emergencies.

Health expenses: Heat waves can also lead to health problems, particularly for vulnerable populations such as the elderly, children, and those with pre-existing health conditions. If you or a family member experience heat-related health problems, it can lead to medical expenses and lost income if you need to take time off work to recover.

Financial tips to cope with heat-weaves-led expenses

Here are three essential tips to protect your finances, these are as follows-

Health insurance: You must have health insurance in this harmful season so that you can get the required treatment at that particular point in time. It will help you maintain financial stability and reduce your tax for the premium you pay.

Passive income: It is always better to have a passive income as you can start investing in dividend stocks, fixed-income investments, and rental yields which will help you cope with the increased expenses in summer.

Emergency funds: Despite having insurance to fight against sudden health issues, be prepared for small unexpected expenses for which you may not cover with insurance, like unwarranted AC repair or unexpected health issues.


To mitigate the financial impact of heat waves, planning ahead and taking steps to reduce your risk is important. By being proactive and taking steps to protect yourself and your finances, you can weather the financial impact of a heat wave.

Anushka Trivedi is a freelance financial content writer. She can be reached at

Disclaimer: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.


First Published: 11 May 2023, 08:30 AM IST