Is it just me, or do you spend a lot more money during summer than you usually do the rest of the year? There are more things to do, more places to be, and more friends to be with. This all requires more money than you would otherwise normally spend.
I am not necessarily talking about vacation spending, but just regular day-to-day spending. While it may seem obvious that we spend more in the summer than we do the rest of the year, it can’t just be excusable, especially if this results in your budget being compromised or your savings being foregone. Summer may be short, but it can also stretch for 3 months or longer, depending on where you live and whether you have kids in school.
So imagine this: for 30-40% of the year, you are not paying attention to your debt, with debt accumulating, you are not saving money, and you are just creating financial problems that you will have to deal with down the road when fall and winter hit. As if winter wasn’t brutal and depressing enough for some, now you have to spend it paying for your summer overspending. This added financial stress can make the colder months even more challenging, turning what should be a time for winding down and preparing for the new year into a period of financial strain and regret. It’s important to be mindful of summer spending habits to avoid this cycle and maintain a healthy budget year-round.
How to enjoy summer but spend wisely?
Yes, there is a happy medium: you can enjoy summer while sticking to your budget. First off, you can’t do it all, nor can you be everywhere. You have to choose your activities and places wisely. Did you spend the first Saturday of July partying with friends and spending a lot of money in the process? If so, you can’t expect to spend the next day at the beach, especially if it involves a long drive, buying supplies, drinks, etc. Otherwise, this one weekend will cost you hundreds of dollars, and you’ll have to spend the rest of the week—or until the next paycheck—basically fasting.
Next is to budget, which by now you realize is an essential component of any responsible personal finance plan. Since you know summer follows spring, why not budget for all the fun ahead of time? You know you will go camping, beach, clubs, pools etc., and these all cost money, so spend some time to set money aside and be ready, otherwise you will put things on credit and spend the fall paying it back, and before you know it, it will be Christmas shopping season. As you can see, a bit of budgeting and planning will save you a lot of financial trouble a few months down the road.
We can’t discuss summer fun and activities without talking about travelling and vacations, but with summer being nice weather and full of local activities, do you really need to travel abroad to enjoy it? For example, some people may go on a vacation to the Caribbean during summer and while that may come to personal preference or affordability, it would probably make more sense to visit these destinations in the fall or winter, when the local climate is cold and you want a break from winter.
Summer is short and fun, but it can also be lethal to your pocketbook. Best to plan and budget for things and activities ahead of time when possible. And remember, while it is tempting to do it all and be in as many places as possible, just remember that the more things you do, the more money you have to spend, possibly going way above your budget limits. Ultimately, the key to a financially sound summer is balance and foresight. By prioritizing experiences and making informed choices, you can savor the season’s warmth without the chill of financial regret later on. So, embrace the summer with a plan in hand, and let your memories, not your expenses, be the things that last.