Tuesday, June 6, 2023
Don’t let summer spending leave you in the deep end. Here are some ways to plan a summer budget that keeps debt in check.
Summer brings sunshine, longer days, and more opportunities to get out and have fun. Vacations, patio drinks, weekend getaways, concerts, and endless activities with friends and family are often the highlights of the year for many of us, but they all come with price tags that add up faster than you expect.
The season's relaxed vibe makes it easy to justify extra spending. "It's summer!" becomes the reason for another restaurant meal, another round of drinks, or booking that last-minute trip. But letting spending run wild for three months can derail financial goals and create debt that takes the rest of the year to pay off.
Summer doesn't have to wreck your budget, though. With some planning and smart choices, you can enjoy the season without the financial hangover.
Before heading out on the road for a summer vacation, look at how much you can afford to spend on the trip in total. This may mean you need to decide between some activities you can afford and others that are a bit too expensive.
Continue revaluating which have-to-haves you really care about and which ones you can do without. As activities and extracurriculars become available, consider which ones offer real value for your children before making a commitment. You might find that you and your kids are happy with the budget-friendly or free activities often available during the summer. Maintaining a healthy relationship with money requires some give-and-take.
If you can, try to save as much as possible before your trip. Emergency savings are an essential part of avoiding debt. If you can, continue building savings and avoid making any large non-essential purchases.
Look carefully at how you have been allocating your spending over the past months.
One way to maximize your summer fun is to reallocate these funds towards improving your summer experience.
Consider dividing your summer spending into different buckets, like vacations, day trips, meals, and kids’ extracurricular activities. If you’re overspending in one area, you can trim somewhere else. You can also focus your spending on the activities that bring you the most joy and value. Try to avoid putting discretionary expenses on your credit card or dipping into your line of credit. Your budget can help with this, keeping you on track and helping you avoid debt.
The art of living within your means while still having fun is rooted in compromise. Rather than taking the whole family out to dinner, opting for a trip to the ice cream parlour is a welcome treat that won’t break the bank. This way you’re still doing fun and exciting things but are avoiding the guilt-trip that comes with overspending.
Staycationing means transforming yourself into a tourist in your own city. It takes a little effort and planning, but it can be just as enjoyable as going away.
The trick is to schedule variety in your staycation: relaxation (you deserve to lounge around a bit), fun (do what you love) and discovery (take the time to try new things).
Plan a few themed days, like a beach day at a nearby lake, a hiking adventure, or a food-tour of local markets, to make it feel special.
You can even turn your backyard or balcony into a mini retreat with a good book, a BBQ dinner, or a DIY movie night.
Staying home will save you a fortune on accommodations, as well as lower the stress that can often come with long travel days. Plus you'll have your comforts of home all the time.
Travelling as a group can significantly reduce your summer vacation costs while still giving you a memorable experience. When you share expenses, you immediately cut the price of accommodations, transportation, and food. This really makes a difference, especially on accommodations when the cost is split between a few different people.
Planning together helps everyone stay on budget. Create a shared itinerary, compare prices, and decide on meals you can cook as a group rather than eating out for every meal. Carpooling or renting a vehicle together also lowers travel costs and keeps the trip more social and enjoyable.
Group travel can also reduce impulse spending. When you plan activities ahead of time and hold each other accountable, you’re less likely to overspend. It’s also an opportunity to try experiences that might be too expensive on your own.
If summer budgeting and a heavy debt load is making you anxious or stressed, consider speaking to a Licensed Insolvency Trustee. One of our Licensed Insolvency Trustees can help you assess your financial situation and do a stress-test before you commit to any additional summer costs.
Tuesday, June 6, 2023
Don’t let summer spending leave you in the deep end. Here are some ways to plan a summer budget that keeps debt in check.
