People tend to spend more money during the summer months. Vacations, outings, increased energy usage, higher gasoline prices, higher grocery bills, and children being out of school are all reasons for higher spending. Even families who pride themselves on their financial planning may find themselves in the hole if they do not plan for the summer months.
Summer budgeting is a great way to reach the long term goals you set in your financial plan on time or even ahead of schedule, preserving wealth for the long run.
Short Term Budgeting Vs. Financial Planning
The success of a long-term financial strategy is largely dependent on staying consistent and responsible with day-to-day spending – daily expenses will amount to a great deal of lost wealth if you’re not careful. A financial planner can look at your current financial situation and help you map where you would like to be in the future, helping you marry your short term budget and spending to your lifetime wealth goals.
During the summer months, as spending habits change, it can be easy to stray from the plan, impeding long term progress. Having a few strategic budgeting goals in mind will strengthen your financial plan by keeping your daily/weekly/monthly spending in check.
Summer Budgeting Tips for Financial Planning Success
Make a Financial Plan
If your pace of life slows down during the summer months, then the summer is the perfect time to think about or recalibrate your financial plan. A financial planner looks at an individual’s current affairs, like assets, debts, and cash flow, and creates a strategy to guide them in accomplishing long-term wealth goals.
Those wanting to make a financial plan can rely on their planner to walk them through a to-do list. However, if you are experiencing conflict with your financial planner where you expect that they may have taken advantage of you and/or breached their fiduciary duties, Gaslowitz Frankel LLC might be able to help.
Save Energy
Energy spending tends to go up during the summer months. Gas prices rise as people travel more. As the days get warmer, households expend more energy expenses on lights, cool air, water, gas, and electricity. Families should consider ways to cut down on their energy consumption to save money and be kinder to the planet.
Households might consider switching to LED bulbs or relying on natural light to save lighting energy. Individuals can open their windows on windy days, or combine their air conditioning with fans to save on electric bills. Plan for more cold meals to avoid using the oven, and check on household ventilation to keep cold air inside.
Budget Your Outings and Vacations
Spending may crawl up unexpectedly during the summer months as individuals fail to properly account for outings and vacations. While it may be tempting to seek out far-off destinations for summer fun, families may want to look for fun things to do in their city or neighborhood. Consider energy-friendly modes of transportation, like using public transit to get to popular destinations in the city.
Remember that during peak season, hotels and vacation housing prices are likely to go up. If a rental has a kitchen, consider cooking some meals to avoid an unexpectedly high food budget.
Continue Paying Your Debts
Individuals sometimes pause paying their bills to make up for their increased spending during the summer months. It would be a mistake, however, to dig a deeper hole. Ensure that payments remain current.
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