There’s nothing wrong with spending a little more to make the most of your summer. Leverage banking tools and expert financial advice to help you stay on top of your summer finances.
Natalie VanderVegt
As we settle into the long, warm days of summer, it’s only natural to want to loosen the purse strings and enjoy all the season has to offer. But at the same time, it’s important to keep an eye on your budget and try to strike a balance between having fun and staying on track with your financial goals. Approach your summer budgeting with kindness and practicality.
Be Kind to Yourself
My first rule of summer budgeting is to be kind to yourself. Avoid setting overly restrictive limits that you’re likely to break. Instead, understand your spending habits and patterns and adjust accordingly. It’s okay to plan for increased spending during these months. In fact, it’s realistic and beneficial to allocate a larger budget for summer spending while keeping savings in mind.
If you do increase your spending over the summer, still try to maintain a savings goal, however small. Working with a savings target can help you make informed decisions about discretionary spending. Ask yourself: Where do I want my finances to be when the summer winds down? Setting a concrete goal can guide your summer spending choices.
Your Mid-Year Financial Check-Up
Use the summer as an opportunity to review your year-to-date spending and savings. How are you progressing toward those end-of-year financial goals? Are they still attainable? In the same way that we at Salal regularly assess our credit union’s performance, individuals should do the same for their personal finances.
A mid-year check-in can prompt a strategic adjustment if necessary. One such adjustment that consistently helps our members is simplifying their spending. There are so many ways to spend money, and tracking expenses across multiple platforms can prove challenging. Consider reducing the number of accounts or cards you use for purchases. This can make it easier to monitor your spending.
If you can’t pay off your credit cards each month and need to carry a balance, be sure to accrue that balance on your card with the lowest interest rate. While it can be tempting to put everything on a credit card, be mindful of your usage to avoid accumulating debt that can become problematic down the line.
Leverage Your Banking Tools
Many financial institutions offer tools to help you stay on budget. At Salal, we provide alert messages when you are approaching your preset spending limit. We also offer budgeting interfaces and financial wellness tools to keep track of your expenses and overall financial health.
Take a holistic look at your finances that includes a review of your paycheck and any alternate sources of income. Are you taking the right deductions? Could you adjust your retirement contributions temporarily to allow for more summer spending? Remember to revisit any short-term changes later on to ensure they align with your long-term goals. A paycheck review with a certified specialist or banker can help you optimize your withholdings and free up more cash for summer activities.
Have a Fun Summer Without Falling into a Debt Spiral
While it’s important to prioritize joy and satisfaction over the summer, don’t do so at the expense of your broader financial well-being. Try to avoid borrowing money specifically for leisure activities. If you’re struggling to make minimum payments on your existing debt, take the time to reassess your budget and consider options like debt consolidation.
Life is for living and summers are for enjoying! By being mindful of your spending, setting realistic goals, and utilizing available banking tools, you can have a joy-filled summer that doesn’t derail your financial health. Regular check-ins and small adjustments can go a long way toward helping you maintain a healthy balance between summer fun and financial responsibility.
Do your finances need a check-up? Want to increase your cash flow? Salal’s banking experts can help you make the most of your money. Reach out today to see how we can help improve your financial health.
