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6 Expert Savings Tips To Keep You From Overspending This Season
Who doesn't love summer? It's special, with long, sun-drenched days, weddings, vacations, backyard parties, outdoor concerts, festivals, and all kinds of fun. But if you're not mindful, the money you spend can get out of control. You need a smart spending strategy.
Try calendar-based budgeting
With so many events and activities occurring during the summer, it can turn into a long string of occasions to spend money. To stay on budget, think ahead.
"Consider the whole summer calendar, not just what's happening this week. That may help you avoid blowing your budget too soon. You don't want to be caught short or have to borrow to pay for things that happen later in the summer," says Richard Barrington, a financial analyst for Credit Sesame.
List the events on your calendar and figure out how much you can afford to spend in total. Then decide how to spread that total among the events you have lined up for the summer.
Set a firm spending limit for each activity. Plan everything around that number and stick to it. "Most people go over budget because they leave room for 'little extras' that add up fast. A $15 upgrade here or there might seem harmless, but across multiple items, it can easily push you hundreds over your original plan," says Elizabeth Rivelli, a personal finance expert at BestMoney.
Save for summer
Ideally, you would have been saving all year for summer festivities, but it's not too late to stash cash, especially for events in late July and August.
"Create a fun fund, a separate savings account just for this purpose," says Kevin Marshall, a certified public accountant and author of Tax Credits Are Sexy. He says to automate a specific amount weekly to transfer to it. "When the money's gone, it's gone, and that's your cue to pause, not swipe."
Plan the vacation that leaves memories, not debt
Before you browse destinations or book flights, determine how much you can realistically afford to spend on your vacation without compromising other financial goals.
"Factor in not just travel and accommodation costs but meals, activities, transportation, and any shopping or souvenirs you might want. Being honest with yourself about what fits within your budget helps you avoid overspending and enjoy your vacation stress-free," says Mary Hines Droesch, head of product for consumer, business, and wealth management banking and lending at Bank of America.
To save money, consider destination dupes—affordable alternatives to popular hot spots. "Think about swapping a trip to Italy for Albania, for example. Choosing a destination dupe can help stretch your travel budget further, meaning you might be able to stay longer or enjoy better accommodations," says Hines Droesch.
Be creative. Stacey Black, lead financial educator at the credit union BECU offers suggestions. What tops her list? Opt for budget-friendly accommodations such as hostels or vacation rentals instead of expensive hotels. Use public transportation or rent a bike; they're often less expensive than renting a car.
Wedding bliss without busting your budget
It's easy to get emotional around weddings, from wanting to give an over-the-top gift to dressing to the nines, but think about your wallet long after the "I do's" have been said.
Allocate most of your spending to the main event and less to pre-wedding events. Remember, it's the thought that counts. You don't have to buy the most expensive item on the gift registry. In fact, shop the register early, and you'll likely have more options in your price range. Don't rule out giving a group gift; share the cost of an expensive gift.
Instead of buying a new outfit for each wedding, invest in one or two versatile dressy pieces and accessorize differently. Borrow clothes from friends or family.
Read more: Here's how to not go broke during wedding season.
Share the load
For backyard barbecues, don't take on the full cost yourself.
"Set a per-person budget and ask friends to contribute drinks or side dishes. Most people aren't expecting a show—they care more about the time spent together than whether the cutlery matches. Even switching to reusable plates can save you money over the course of the season," says Rivelli.
You can also skip the pricey décor by using online tutorials to create something personal and less expensive.
Cool smarter
That AC bill can sneak up.
"Try a ceiling fan and dehumidifier combo, especially if you're in a humid climate. It lets you set the thermostat a few degrees higher without sacrificing comfort," says Chitra Patel, a certified financial planner and founder of WealthWorth. Remember, too, that small adjustments can lead to big savings.
"Set your thermostat a few degrees higher when you're not home or while you sleep, and use a programmable thermostat to automatically adjust temperatures," says Chris Heerlein, CEO of Reap Financial.
The takeaway
Says Patel, "Summer is short—but your financial goals are long term. A little planning goes a long way in making sure you can enjoy the season without the hangover."