Dealing With Spending Pressures

Summer is officially here, and it’s time to mingle and socialize. Many are ready to finally enjoy an unrestricted covid season. Now, to get financially prepared for the summer. Enclosed are some interesting tips that could help curb spending temptations during the vacation season. Remember, it is also essential that we think of how our summer expenses will impact our finances in the long run.

The pandemic taught us that the emergency fund was crucial to our survival. Still, thankfully, now that our finances are no longer on lockdown, this is a great time to zero in on some of our long-term savings goals despite the pressures around spending during this season.

We don’t just want to go off on a spending tangent with credit cards or lines of credit without a plan. Yes, treating yourself and your loved ones is essential, but having a budget or just a simple financial/spending plan is crucial this season.

The top 5 financial tips to help you limit overspending temptations this summer.

Tip 1 – Budget

Consider building a year-round budget that includes summer activities.

Budgeting is vital as it helps you track where your money is going. You want to understand your expenses and decide if you are spending money where you want it to go. You need to draw up a realistic budget that considers all your fixed, fun and future goals. Fixed costs show up each month, and un costs include expenses that vary based on how much you spend. You may want to review the last few months to see how you spent your money if you have not been keeping track of your expenses over the pandemic. This is a great time to create a new budget as your expenses may have changed since then. Write down your costs and what you plan to spend for the year in all expense categories of your budget. Then start allocating fun activities you will spend money on this summer. Summer activities include road trips, events, weekend getaways, vacations, sports events, hobbies, hosting family etc., just in case you have run out of ideas. Finally, determine what you want to save in the future category for an emergency fund, retirement or another savings goal you may have so that your money can work for you in the future.

Tip 2 – Pay Yourself First

Determine what you want to save in the future category for an emergency fund, retirement or another savings goal you may have so that your money can work for you in the future.

Start by putting aside a percentage of your income, so you’re automatically living on the remaining funds left over. Remember, the money you save is a commitment to self-care you create for your future self.

Tip 3 – Prioritize

Prioritizing is important because sometimes we might not be able to afford all that we put in that plan, and some activities are more important than others. When you prioritize, you allow yourself to be realistic with your needs and wants.

Tip 4 – Plan Ahead

Planning is usually underrated, and when things come up last minute, we may throw money at the problem. Why not just create a summer calendar that maps out what activities you want to do, then allocate money to each. Planning also helps you decide what should be prioritized or that may need to be pushed to the following year.

Tip 5 – Consider Kicking it Old School

Sometimes, simple strategies like saving up cash in a jar could be helpful. If using spreadsheets isn’t your thing, you might want to try keeping money in various envelopes. With this strategy, you can pick up cash for each activity, and once you’re out of money, that’s a visual cue that the budget’s done. Consider trying out budgeting apps as well.

A CFP can help you understand your financial situation as a financial expert. We can identify economic opportunities to reach goals you might not identify on your own. If you want to get started with a financial plan, book your complimentary 30-minute financial planning session with our team. We are here to help you on your financial journey as you build your financial fortune. www.askjackie.ca/contact-us