Summer is a time of temptation when it comes to spending. From longer days to travel and summer camp expenses for kids, our money seems to disappear quickly during the warmer months.
Financial coach April Stewart emphasizes the importance of being intentional with our spending during the summer. She points out that overspending often happens when we lack a clear plan.
Stewart and other experts suggest that it’s not too late to take control of your summer expenses or start planning for next summer. Here are some strategies to help you manage your finances:
1. Decide where you want your money to go
Financial coach Keina Newell advises taking the time to understand your spending habits and priorities. By planning for both essential expenses and enjoyable summer activities, you can create a budget that allows you to have fun without overspending.
Reflecting on past spending can help you identify areas where you get the most value for your money. This can guide you in allocating funds to activities that truly bring you joy.
Setting a budget for summer activities gives you the freedom to enjoy the season while staying within your financial limits. Newell refers to this approach as “permission budgeting.”
2. Map out (and plan for) big expenses
Anticipating major expenses in advance allows you to allocate funds accordingly. Creating a budget spreadsheet can help you estimate upcoming costs, such as travel, family events, and seasonal bills.
Including items like gifts and special events in your budget can prevent accidental overspending. By planning ahead, you can ensure that you have enough funds set aside for all your summer expenses.
3. Build in a cushion
Unexpected expenses can arise during the summer months, so it’s essential to have a financial buffer. Financial coach Stewart recommends keeping a cash cushion in your checking account or setting up a separate savings account for emergencies.
Having a designated summer savings account can provide peace of mind and prevent the need for high-interest borrowing in case of unforeseen costs.
Even saving a small amount can make a big difference when unexpected expenses arise.
4. Just say ‘no’ to friends (sometimes)
If you’re on a tight budget, don’t be afraid to decline expensive social invitations. Financial coach Newell suggests having open conversations with friends about budget-friendly ways to socialize, such as hosting potlucks or exploring free local events.
Setting boundaries and prioritizing your financial goals is important. If an activity doesn’t align with your budget or values, it’s okay to decline.
Learning to say ‘no’ to unnecessary expenses can help you stay on track with your financial plan.
5. Move on quickly from slip-ups
If you make a financial mistake, don’t dwell on it. Use the experience as a learning opportunity to make better decisions in the future.
Analyzing your spending patterns can help you identify triggers that lead to overspending, allowing you to make positive changes.
6. Avoid spending triggers
Identifying what prompts you to overspend can help you make better financial choices. Whether it’s late-night online shopping or impulsive purchases on rainy days, being aware of your triggers can prevent unnecessary expenses.
Finding affordable alternatives to expensive desires can help you enjoy the summer without breaking the bank. Setting realistic financial goals and prioritizing your spending can lead to a more fulfilling and stress-free summer.
7. Seek out free fun
Take advantage of the many free activities available during the summer. Local parks, libraries, and community centers often offer entertainment at no cost. Engaging in these activities not only saves money but also creates lasting memories.
Enjoying affordable or free summer fun can be just as rewarding as expensive outings. By being mindful of your spending and seeking out budget-friendly activities, you can have a fulfilling summer without financial stress.