Here we are! It is already July. If your summer vacation budget is burning too, it’s time to take action.
The summer’s devastating impact on the budget? Almost like a bad sunburn. Whatever you come across afterward, it’s time for your budget to return to its original shape and structure.
No matter how careful you are, summer can throw your family budget out of the window. And since this season is famous for new experiences, relaxation, fun, and interesting camps for children, let’s keep it balanced in terms of expenses too. After all the advice on the Educat si Bogat blog, I hope you entered the summer with a solid budget and a financial attitude that will not create undesired effects.
Assess your summer expenses and income
When creating a budget, it’s best to start by assessing your overall financial situation and any future changes in income and expenses.
Ask yourself:
- “Do I have an emergency found?”
- “Do I have any high-spending events that I need to attend this summer?
- “How’s my income oscillating in the coming months?”
- “Are family’s summer activities affecting our budget?”
- 5.”Do I have an activity/job that leads to financial fluctuations depending on the season?”
Try to avoid big swings in expenses and income
Changes in expenses and even income have been common over the past decade for many of us. Salaried income is unlikely to change, but for freelancers or entrepreneurs, income can be affected by the changing seasons. Teens and young adults may experience fluctuating incomes when they have seasonal jobs.
A recommended way to keep track of expenses is to open designated deposit accounts for each category of expenses. If you separate your vacation funds into different accounts, chances are good that your vacation budget will remain intact, and generous, without affecting your other financial goals or the length of time until you reach them.
Set summer savings goals
Before the start of summer, you should have already taken a look at your financial goals, made all the necessary adjustments to achieve them, and tracked the progress of investments.
A key step in the money management process is establishing a routine for saving and investing and achieving specific financial goals for you and your family. Do this before the summer season knocks on the door.
It’s also time to think about how you can develop an even better strategy for next year.
A coach for every situation and budget
Taking this step with the help of a financial coach will get your financial priorities in mind when you make decisions. Decisions about your spending habits for a stress-free summer!
When it comes to teenagers and young adults, they often have different, and short-term priorities when it comes to summer savings goals. Most of those who will earn summer money, save or suddenly receive bigger sums, will spend it for all that means fun, travel, etc.
However, this could be a great time to look ahead to those long-term goals, such as saving for a car if they reach the required age, planning for college or an emergency fund.
Some young investors have already started building their real financial future from savings accounts and reaching the most serious and diversified investments.
Create a summer budget
After you have cleared your summer financial goals, you’re ready to start creating your summer budget. There is no miracle solution, but there is a financial way for any budget. The 50/30/20 rule has not gone out of fashion. Use it with confidence if you left it abandoned. However, every family has their priorities when it comes to spending, but whatever summer budget you have don’t forget to value experiences.
Some other seasonal recommendations:
Prevent impulsive/excessive spending
- Identify expenses that can be reduced, including those on energy (ex: excessive use of air conditioning for example)
- Choose the holidays you can afford (so that you can enjoy the comfort of good savings even after 7/10/14 days of spending)
- Pay off debts before entering the summer season
- Choose different summer workshops for kids if expensive camps would put a lot of strain on the family budget
- Visit local markets on holiday for quality products and some savings on food
- Don’t forget about NO COST or affordable local events and exhibitions in your city
Whatever your savings goals, I create customized solutions for a financially healthy summer.
Start the month of July with a 1 to 1 coaching plan. And don’t forget! Everything starts with financial education, and “Financial education is about life!”.