Summer is a time for enjoying yourself and making the most of the sunshine. To many people, this means sitting by the pool and reading a book. For others, this means checking out big-screen blockbusters that will make them laugh, cry and root for the anti-hero. But whatever your fancy is, there are many costs affiliated with summer activities as well.
While many people tell themselves they are going to save money during the warm months, this is not always the case. With weddings, vacations, children’s sports leagues and so many other things to do, it is important that you put together a budget for the summer.
While the warmth has already begun, there is still time to put a summer budget together before the activities get underway.
Consider your events
It’s no secret that summer gets filled up with a variety of events – from graduation parties to family reunions to summer camps. According to U.S. News & World Report, you should put together a list of all the things you need to do so you can budget accordingly. This will help you keep organized and budget out each event, so you aren’t running around at the last minute scraping up money or dipping into savings.
“Have spending rules in place so you can do what you want to do this summer.”
You need to keep in mind all the details that come with each event, such as gas or hotels. Sometimes people only think of the event itself without considering the costs of travel, lodging or food. When putting your list together, make sure it is thorough.
When kids are finally out of school it is great fun to take them on vacation. This gives the family a chance to relax and spend some quality time together. However, it is easy to go overboard when it comes to any vacation. Instead, have goals in mind about how much you want to spend and then stick to that amount, Practical Money Skills noted. This way you can have your fun without burdening your financial situation.
Have spending rules
No matter what your summer costs are, you have to plan ahead for them. The best way to put money into your summer budget is to establish rules regarding spending. According to LearnVest, the 50/20/30 rule is extremely efficient if followed properly. This rule dictates that you apply 50 percent of your income toward necessary living expenses, 20 percent toward any savings funds or debt you have and 30 percent toward fun summer events.
While you may think you should be saving more than that or allocating more money to your debts, this is only a temporary budget and will allow you to enjoy the summer knowing you have taken care of the important things first, such as paying your bills and cutting into your debt. If you have any leftover money at the end of summer, you should put that into your savings as well.
Be aware that summer comes with a plethora of costs that you need to be ready for. Not preparing for summer expenses can get you behind the eight ball. Instead, start your planning right now, and have a great summer.