In The Summer Tab series, we’ll explore why summer is one of the most expensive times of the year — and what steps you can take to keep your finances on track and avoid debt burden by Labor Day.
Summer is always the most expensive time of the year. But does it have to be?
There is no such thing as a perfect budgeter. But for most of the year, people are very good at saving regularly and working toward their financial goals.
However, the second heatwave depletes the budget.
The end result (after weekend adventures, impromptu shopping trips and lots of eating out) resulted in plenty of summer fun and one terrible credit card bill in September.
According to a recent news credit karma survey“Nearly a third of Americans (31%) expect to take out a loan this summer, rising to 37% of Gen “Expect to borrow more against the dollar.”
But what if we could make a change this summer?
Here’s a simple three-step process for sticking to your summer goals without losing too much fun in the process.
Find out: Why is summer so expensive?
The first step to curbing spending is to be mindful, asking: What are you really spending money on over the summer?
Looking at last year’s credit card statements, you might notice a trend.
When people look back at where their summer money actually went, the big planned expenses — a wedding, a flight, a big trip — are usually the ones they saw coming.
What surprises people are these things:
round of drinks after work
A piece of gear purchased for a hobby that is used twice
There were too many delivery orders on nights when it was too hot to cook
Personally, none of this seems like a big deal. But, adding up over a season, it can easily amount to thousands of dollars.
convert insight into understanding
Once you’ve gotten over the initial shock of your expense list, start thinking deeper. How do you feel about those small, random purchases now, and what can it tell you about sticking to your budget this summer?
Take a look at your discretionary spending and sort transactions into three categories so you can better understand what type of spending brings you happiness:
- A purchase that brings you happiness
- You regret the purchase
- purchases you don’t remember
Nearly a third of Americans (31%) expect to take out a loan this summer
Perhaps you’ll realize that your spending on social engagements and outdoor activities still feels beneficial. But those purchases you made out of convenience? Not so much.
Create a vision for summer
Create a plan by gaining knowledge of what type of spending makes the most sense for you.
For example, if you spent a lot of time kayaking last summer, put a budget for outdoor adventures on your list this year. If you really love weekly brunch, make room for that too.
Here are some more tips for managing your costs:
- watch free adventuresLike finding free places to go kayaking or exploring new parks in your area.
- Get the most out of your library. Turns out they have passes for our state parks, so you can get in for free.
- Buy summer memberships and memberships where it makes sense. For example, subscribing to your local pool. If you visit frequently, it costs pennies on the dollar compared to buying a day pass.
Final result? A plan to make summer memories, without getting you into debt. Check out the post “5 Ways to Strengthen Your Financial Foundation” for inspiration on how to be strategic with your spending.