As May is about to come to a close, many people start thinking about summertime. However, for some people, summertime is closely associated with the dollar sign and all the expenses the season involves. There are vacations, camps, air conditioning, and more that makes summer one of the more expensive seasons. According to the managing vice president of Capital One, Shane Holdaway, March is the most expensive month of the year. (Yes, I realize it is May and we are talking about March – but stay with me here.) In an article on Oprah.com, Holdaway states this is because March is an in-between month, between seasons, where people are getting cabin fever and thinking about their summer plans. And with the summer plans, people are spending money. So, now back to May, if you were one of these people, how do you recoup some of that money to put more back into your wallet this summer? Continue reading below to find out.
- Assess the damage. It can be hard to admit you went on a spending spree and see how much you spent. However, it is necessary. Think about the expenses you have already made or are going to make during the summer and see where you can pare down. Maybe you purchased a suite at the beach and you really don’t need it. See if a friend or family member might be willing to pay you and use the suite for their vacation. Another option is to try to find another family that will go on a beach trip with you and would be willing to split the costs.
- Get back on track with your budget. Unfortunately, there are just some expenses you won’t be able to recover. Factor them into your budget and rebuild from there. Sometimes it is best to start from scratch with your budgeting. First, write down all of your fixed expenses, such as car payments, utilities, insurance, etc., and then see how much of your income is left over. Stick to your new budget until you have regained what was lost.
- Create a plan for paying off your debt and big expenses. Let’s face it – a vacation can be expensive. If you under-budgeted and over-spent, create a well-organized repayment plan. Think about the last trip, refigure your budget and see exactly how much money you have to spend. Paying off your debt or big expenses should become a fixed expense. Go on a spending diet and don’t spend money on anything unnecessary until that purchase is paid off.
- Always, always, always track your spending. Whether you made the purchase months in advance or that day, write it down in whatever method you prefer. This will help prevent a downfall if you accidently forget an expense that was made in March, but the money wasn’t taken out until May.
- Set a deadline to get back on track. Summer doesn’t have to be a time to lose money. It can be a time to gain it. For example, create a deadline and commit to it for reorganizing your spending and paying off summer expenses. This can be at the beginning, middle, or end of summer. Whatever works for you.
- See what went wrong. To be honest, something went wrong somewhere in your budgeting method for some expenses to slip through. Determine how that happened. Maybe it was an impulse expense. There is nothing wrong making purchases ahead of time; just make sure you have budgeted them in and keep track of them.
Summertime can be a time to make memories with your loved ones. But, it can also be a time to save money and get back on track after the summer expenses have been made.