As we wave goodbye to the chilly season, we can look forward to the delights of summer in a few months. This time of year is ideal for vacation getaways, backyard BBQs, dining out, and various modes of relaxation. However, the sunny season often comes with a hefty price tag. Have you begun organizing your summer finances?
The time to begin saving for summer expenses is now. As financial expert Amy Richardson, CFP of Schwab Intelligent Portfolios Premium points out, starting to save before the arrival of summer gives you the advantage of spreading out your savings, easing the strain on your short-term cash flow. This approach ensures you won’t have to rush your savings and mitigates the stress of wondering where the necessary funds will come from.
Planning for the sunny season is essential to control your expenditure and establish a monthly budget that allows you to relish the summer without straining your finances! Here are some advantages of planning for the summer ahead of time.
ESTABLISH YOUR SPENDING LIMIT
Identify your potential summer expenses first. This might not reflect your actual expenditure but should encompass all your desired activities. Sum up all possible expenses relating to trips or locations on your wishlist. Record this number for future reference – if it seems intimidating now, just breathe.
AVOID EXCESSIVE SPENDING
Design a budget for each summer activity to prevent overspending. Factor in all expenses including transportation, accommodation, food, entry tickets, and sundry costs like petrol or souvenirs and then plan your summer around this budget.
REFOCUS YOUR EXPENDITURE BUDGET
When calculating your budget, consider substituting some winter expenses with anticipated summer costs. Remember, during the summer, energy bills like heating and early evening lighting can decrease, and you’ll likely save on holiday shopping or large family feasts.
ENSURE YOU HAVE A SAVINGS PLAN
Planning ahead provides an opportunity to set aside a portion of your weekly or monthly income for summer pursuits. After setting up a savings account, create a recurrent monthly transfer to protect against forgotten payments or accidental usage of these funds. Plus, one of the joys of budgeting for summer is the abundance of free or affordable activities, if you get creative.
LOOK OUT FOR BARGAINS
Book your summer arrangements as early as possible to prevent last-minute, high-priced bookings in the peak season alongside others planning their holidays. Saving a bit monthly towards your vacation can prevent sizeable credit card debts.
AVOID PEAK PRICING
Booking in advance allows you to take advantage of as many early bird discounts as possible, especially if you’re vacationing on a budget. However, bear the following in mind:
Travel outside the peak period. For example, if you’re from the northeastern U.S., late summer is an ideal time to travel to the southeast as students start returning to school in early August.
Price compare your options. Depending on your destination, your plans, and the timing of your booking, exploring and comparing prices can accrue immediate savings.
Watch out for price reductions. Over time, prices may drop, so regularly checking back in even after you’ve booked could lead to rebooking benefits.
EXPLORE LOCAL ADVENTURES
Planning ahead allows you to look to local events. Summer fun isn’t reserved only for distant locales. Capitalizing on nearby activities like hiking trails, beaches, museums, and festivals can genuinely cut costs by eliminating travel expenses.
IN CONCLUSION
You can bask in the summer’s enjoyment while maintaining financial responsibility. Although sticking to a budget and tracking your spending may need some practice, the more planning for summer you do in advance, the easier it will be to adhere to your budget during your vacation. For instance, if you’ve already planned free activities in your vacation locale, you’ll avoid the stress of last-minute itinerary additions after a tiring journey.
