Summertime is a wonderful time of year for many people, but it’s also a time when some people can find themselves overspending or otherwise getting into financial trouble. Here are four tips for staying out of debt over the summer and sticking to your budget:
- Prepare for a possible drop in income during the summer. During the summer, many businesses experience a decline in activity, so it’s best to be prepared for this reality. To avoid dipping into savings or going into debt, trim your discretionary spending and use the extra funds to cover non-discretionary expenses. You can also choose to find a side hustle for the summer to supplement your income.
- Make sure your budget is ready for the summer. When summer arrives, you’ll need to make some adjustments to your budget. Here are some things to keep in mind:
- Increased utility bills
- Higher fuel prices
- Travel costs
- Increase in kids’ activities due to school being out
- Plan your vacation budget. Plan a budget for your summer vacation to avoid overspending. List the dollar amounts you expect to spend on lodging, car rental, food, transportation, entertainment, and outings.
- Review and adjust as necessary. Blowing your budget should never be an excuse to overspend. To avoid falling into this trap, keep a close eye on your spending throughout the summer. By reviewing your budget and overall spending habits, you’ll be able to make more responsible choices going forward.