3 Spring Hacks to Get Your Finances Ready for the Summer
3 Spring Hacks to Get Your Finances Ready for the Summer
Forget about summer bodies!
Let’s get your money ready for the summer.
Use 3 simple spring hacks to get your summer budget ready.
As a 20+ year financial professional and mom whose life never seems to slow down, I’m always looking for an easy way to manage my money and help my clients.
The concept of spring cleaning has always been dope to me. There’s the idea of a fresh start, and you get rid of “untreasured” items.
Plus, you can easily see the fruit of that labor. Your home is cleaner or more organized and maybe the garden is full of vibrant-colored flowers (if gardens are your thing).
Imagine taking this same approach when it comes to your money.
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Did you know that scientific studies indicate our spending patterns naturally shift with the seasons?
I believe in the studies that say energetically, we feel different and more inspired when the sun is out longer, and the weather gets nicer.
That makes spring the perfect opportunity to sync our plans with our purchases. We can do the things that we’ve been putting off for the first three months of the year.
For years, retailers have known that consumers’ needs, demands, and preferences change by the season.
Photo by Chris Lawton on Unsplash
Because of that, they make sure that they’re always in a position to take whatever money we’re willing to give them.
If you’re the primary or sole breadwinner, then I want you to own your power using similar strategies to master your summer budget.
Think about what you know about yourself, your household, and your family spending.
What about the things that happened in winter, spring, fall, and summer over those last few years?
Sure, there were some unexpected expenses that hit you, but it’s very likely that there’s a repeat in patterns.
If you live somewhere with real winters, your heating bill is likely disrespectful.
Alternatively, if you have lived somewhere that loves offering three-digit summers, your electricity bill is constantly high.
Children?? Your food bill goes up in the summer because you’re responsible for providing more meals.
OK, hopefully, we’re tracking.
According to Maslow’s hierarchy of needs, we require certain things to feel safe, and I agree with that list.
You know – food, shelter, water…
In many cases, we’ll have to pay for these things, but paying too much is doing ourselves a disservice.
Tip #1. Am I paying too much for things I use regularly?
Their identities are not disclosed to protect their privacy; the details, however, are verbatim accounts. Similar to real life, there are several different reasons that people’s relationships end.
As a financial professional, I know that the standard guidelines say that housing expenses should run about 30 to 35% of net pay.
This is never as cut and dry as it sounds because the cost of living varies significantly across the country.
However, when it’s possible, you should consider cutting your housing expenses.
Of course, this can look very different depending on your situation. But if you happen to be in a circumstance that you need to make a move this summer, for example, then keep that number in mind, that 30 to 35% number.
You also might want to consider downsizing.
Hear me out.
I know that it’s not always possible for very logical reasons.
However, very often, when we hear the word “downsizing,” we resist because of appearances or quite possibly pride. I have downsized my living situation a couple of times just because it made sense and I wanted to save money.
And I know people, friends, family and even clients of mine have chosen to downsize to save money, particularly after leaving a long-term relationship or marriage.
And it doesn’t mean that the downsizing must be permanent.
The next most significant expense is usually the money we spend on our cars.
So, if you live in a city or an area that requires you to have a car, then car payments can take up a big chunk of your money.
Again, the standard guidance is that your car payments should be 15 to 20% max of your take-home pay. If you find yourself in the market for a car this summer, then perhaps you need to keep that in mind when you’re shopping. The best time to buy a car is typically after October so if you’re able to wait that may help you lower your cost.
Those two big assets, cars and homes, generally require us to have insurance. The standard guidance for insurance is about 10 to 15% of your net pay, with 20% on the high end.
Here’s an opportunity for you. Have you been with your insurance provider for a while?
If you haven’t shopped your insurance recently, then you might be surprised about how much money you can save.
Tip #2 – Am I paying for things I don’t use?
You signed up for a free 99 trial and forgot to cancel the subscription.
You may also have a membership to a service or place you promised to use but haven’t.
Here’s my challenge to you: If you don’t use the service or visit the place within the next 30 days, cancel it. But hold yourself accountable by setting a reminder on your phone 30 days from now that says “reminder to cancel XYZ.”
If you miss the service after canceling it or find an opportunity to use it more regularly, guess what?
They are going to take your money again.
And even though signing up for this service all over again feels like mental karate, you and I both know that it’s really not that painful.
You can use websites and apps to help you determine what you’re paying for, but you may not be getting your money’s worth.
For example, you can use apps like Trim or Pocketguard to cut unnecessary expenses or inform you of overspending.
Of course, there is no shortage of apps that can help you get your financial life together—there are so many that it’s overwhelming. So, we did the work for you to research the top tools in different categories.
Our complimentary Financial Resource Guide is a curated list of those tools and more.
Grab your copy of the free Ultimate Financial Resource Guide
Tip #3 How to Plan for Fun Without Breaking Summer Budget?
If you are anything like me, you already have a summer vacation planned.
Sometimes, those plans can be costly.
With that in mind, take the time to consider the estimated cost of your summer plans. Ask yourself if the money you have saved will cover 100% of the costs of your amazing summer plans or if you need to put it on a credit card.
If the answer is that you might need to put it on a credit card, then let’s try something different.
Let’s say your summer vacation costs about $3,000 and you can afford to put up $1,500 right now. Then, over the next few months, you are saving the remaining $1,500.
If your money is a little funny and that doesn’t sound possible, then it’s time to get creative. It doesn’t mean that your summer plans will be ruined.
However, a slight change to your plans could make a big difference to your summer budget.
I’ve had to do this myself. I’ve canceled a few trips and shortened one by one day just to stay within my budget.
Your family can have amazing memories and experiences just by spending time with you.
And if you live near or in a major city, there are usually tons of free activities you can all do.
Although this might require a little extra work, you’re not breaking the bank and charging new credit card debt.
Am I tracking closely to my financial plan?
We start feeling broke in September / October, because we often lose our minds in the summer.
Now that you know how to approach the next 90+ days, do you feel ready to work on your money plan for the rest of the year?
Remember budgets are just plans for your money. It’s an opportunity for you to align your goals what the seasonal flows.
You can figure out how your money is growing and where your money is going.
Think of it as prioritizing your well-being for both present and future benefits.
Establishing plans for your money year-round can help you confidently tackle major expenses like debt payments, tuition, car repair, home repairs, or budget line items that you can’t say no to.
Tackle these expenses by breaking them down into manageable missions, so that you don’t get stressed.
Additionally, do not underestimate the damage that stress can do to your health.
If the idea of tracking your expenses feels overwhelming, leverage technology to help you stay on track.
I am NOT tech savvy; however, many user-friendly tools are available.
Use all the resources you need to make sure your money is ready for the summer.
You May Also Be Interested In:
- Easy Ways to Organize Your Money Before Year End
- New Experiences Don’t Have to be Expensive
- Easy Ways to Cut Expenses Going Into the New Year
Disclaimer: The information provided is for general informational purposes only and does not constitute professional legal or financial advice for your personal situation.
Nikki Tucker
Founder & Managing Director
Nikki is an experienced financial services professional, a Certified Divorce Financial Analyst ®, and the primary divorce financial strategist for The FIIRM Approach. She helps female breadwinners prepare for divorce to avoid common financial mistakes and confidently maintain their financial security post-divorce. She uses proven strategies within the FIIRM Approach methodology so her clients can manage their money, debt, and credit and be connected to the right resources for the next phase of life. TAKE ACTION & LEARN about the tools that can help make your pre and post-divorce easier. Grab your FREE Divorce Support Pack.
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