Yahoo Finance Experts: 7 Tips for Creating a Summertime Budget You’ll Actually Stick To
According to a recent study conducted by GOBankingRates, 58% of Americans plan to stick to a budget this summer to save money. With children out of school and parents looking for things to do, it’s that time of the year where spending can naturally increase. While inflation figures remain stubborn, Americans are still trying to find ways to enjoy the summer holidays without breaking the bank.
How can you create a summertime budget that you’ll actually stick to? Here’s what the experts had to say.
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Consider That Your Spending Will Change
Before you begin working on a summertime budget, remember that your spending will change as your activities increase and your family begins planning things to do with all of your free time.
“When creating a summertime budget, consider your typical spending changes from the rest of the year,” said Eric Rosenberg, finance expert and founder of Freelancer Dashboard. “For example, if you take a family vacation every summer, you’ll want to include the extra costs in your spending plan.”
Accounting for those spending increases in advance will help you avoid the temptation of last-minute expenses that aren’t in your budget — and so you’ll be more likely to stick to the expenses you did include.
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Get Your Finances Organized
“With so many things out of your control in the current economic climate, how you save and spend money is something that you can take control of with the right tools, but the first step is to get organized,” said Courtney Mitchell, head of consumer deposit and payment products at TD Bank.
One of the most efficient ways to start organizing your finances is to analyze your spending from last summer.
“Reviewing last year’s spending for summer months can help you gauge if you’re on track to spend more or less than other times of the year,” said Rosenberg. “If you’re not already using one, a budgeting app can help you understand where your money goes throughout the year.”
Create Realistic Goals
“Before you put pen to paper and write out a budget plan for yourself or your family, it’s important to set realistic goals on what you wish to achieve with your budget,” Mitchell said.
It’s tempting to agree to all plans — until you realize how much everything will cost. You probably can’t do it all, so understand what you can afford and start your plans there.
Mitchell pointed out, “The specificity of a budget is ultimately up to the individual family, but it boils down to the fact that fixed expenses are easier to control, variable expenses are less so and can often throw a wrench in budget planning.”
Increase Summer Savings
“To jumpstart summer savings, consider using your tax refunds or end-of-year bonuses as the base for a savings fund,” Mitchell suggested.
If you plan on having a busy summer with your family, you’ll want to start saving now, if you haven’t yet. The more you’re able to save in advance, the less you’ll miss out on.
Plan Your Activities in Advance
If you plan your travels in advance, you won’t have to scramble at the last minute to find accommodations and get stuck with higher prices.
How can you save money here? Aside from travel and accommodations:
Track how many events you’ve committed to attending so that you don’t overbook yourself.
Write down how many gifts you plan on buying for summer holidays and parties, since it’s easy to get carried away.
Mitchell shared more insights on how to save money by planning your events in advance: “Breaking down your total budget by the events you plan on attending will help you avoid last-minute purchases, which are usually more expensive and do not give you as much time to search for deals.”
Account for Hidden Costs
Hidden costs will likely pop up during the summer months that you could forget about, especially if you had a quiet winter and spring without many extra activities. Some of these include:
Transportation to events
Food when you visit amusement parks
Time off from work.
Leave space in your budget for these forgotten costs so that you don’t end up racking up debt.
Look for Ways To Save Money
You’ll want to find ways to save money on summertime plans by embracing certain frugality tactics that could go a long way.
“One of the most overlooked ways to save money on your budget — especially in the summer — is to contact your electric/utility company,” said Eric J. Nisall, accountant and founder of Understand Finances. “Many of them have special programs that give you discounts or statement credits throughout the year for cycling off major appliances during peak hours or using certain appliances at certain times for reduced rates.”
By limiting your spending on utilities and other expenses, you can be more diligent about your summertime budget.
Mitchell added, “When planning your route for a summer trip, research if your current cards offer rewards or cash back around expenses associated with summer travel, like gas.”
Every little bit will help as you try to stretch your dollars during the summer months.
Mitchell concluded, “Shop smart and use coupons and cash-back apps whenever possible, and consider buying gifts in bulk if you will be attending similar events for holidays like the Fourth of July.”
GOBankingRates surveyed 999 Americans aged 18 and older from across the country on between May 3 and May 7, 2024, asking twenty-two different questions: (1) What will you spend the most on this summer?; (2) Has inflation impacted your summer vacation or travel plans this year?; (3) If you’re going on a vacation, how do you plan to travel? (select all that apply); (4) If you’re going on a vacation, where do you plan to stay? (select all that apply); (5) How much do you expect to spend on vacation this summer?; (6) What’s the best way to save money on vacation costs?; (7) If you are a parent, how much will you spend on summer activities/camps for your child(ren)?; (8) If you are a parent, how much will you spend on weekly child care costs this summer?; (9) Which retailer do you shop at most for your summertime needs?; (10) Which retailer do you think has the worst deals on summertime essentials?; (11) If you shop at Dollar Tree, what’s your summertime must-buy? (select all that apply); (12) If you shop at Costco, what’s your summertime must-buy? (select all that apply); (13) If you celebrate Memorial Day, how much money do you plan to spend?; (14) If you celebrate the Fourth of July, how much money do you plan to spend?; (15) If you celebrate Labor Day, how much money do you plan to spend?; (16) If you’re shopping during Memorial Day weekend, what are you planning to buy? (select all that apply); (17) If you’re shopping during the Fourth of July, what are you planning to buy? (select all that apply); (18) If you’re shopping during Labor Day weekend, what are you planning to buy? (select all that apply); (19) Do you plan on working a side hustle this summer to cover expenses?; (20) What are some ways you plan to save extra money this summer? (select all that apply); (21) How do you plan to build your wealth this summer? (select all that apply); and (22) Which summer purchase is worth every penny, in your opinion? (select all that apply). GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
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This article originally appeared on GOBankingRates.com: Experts: 7 Tips for Creating a Summertime Budget You’ll Actually Stick To
