Are you guilty of overspending during the summer? Don’t fret! Here are some simple and easy tips to get your budget back on track this fall.
While the summer sun may be good for your mood, immune system, and may even improve night-time sleep, the hot season can be quite detrimental to your wealth. Some of the reasons why your purse strings loosen as soon as the spring weather starts to warm up include:
- There are more things to do (eg. summer festivals, music events)
- Many people go on summer vacations
- People become more spontaneous and adventurous during the warmer months
- It’s easier to spend, whether you’re going for lunch, dinner, or drinks with friends.
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4 Ways to Recover From Your Summer Splurge
The summer months are perfect for kicking back and relaxing, but if you aren’t careful, this carefree attitude can seriously affect your finances. Whether it’s making extravagant vacation plans or enjoying too many nights out, the result is the same: accumulated credit card debt and a bruised bank account.
The good news? Despite the summer excitement that got you overspending, some careful planning can get your budget back on track for the fall. Here are 4 simple tips for recovering from your summer spending:
1. Eliminate Your Debt
While it’s true that once you’ve swiped your credit card, there is no going back, you can make it a priority to pay your bills in full and on time. Doing so will significantly reduce the long-term impact of any excessive summertime spending.
Tip: Start paying off the cards with the highest interest rates and while you are recovering, avoid racking up any additional debt by leaving your card at home when going out.
2. Adjust Your Budget
If you’re finding it challenging to pay off your credit card bills, you may want to consider adjusting your budget. Take a good look at your expected monthly expenses and try to work out which are essential, and which ones you can live without.
For example, you may want to consider:
- Drawing up weekly meal plans so you’ll be less likely to eat out.
- Temporarily downgrading your cable subscription.
- Using public transportation to cut down on fuel costs.
Remember: Tweaking your budget doesn’t necessarily mean making drastic changes that will reduce your quality of life. It’s about making small tweaks that are sustainable in the long run.
3. Pad Up Your Bank Account
If tweaking your budget isn’t working, then you may need to supplement your current income. While that certainly is challenging, it can be done. For example, you may want to:
- Ask for more shifts per week at your current job
- Put in overtime hours
- Search for a part-time job, whether it’s on the weekends or evenings
Don’t Forget: When it comes to credit cards with high interest rates, every dollar counts and an extra 2-3 hours of work will help you tackle your debt before it spirals out of control.
4. Review Your Mistakes
This is by far the most important thing you can do after a summer of overspending as it will help you avoid similar mistakes in the future. You may even want to consider setting a budget for next summer and creating a savings plan for those expenses.
Tip: Setting aside some savings this upcoming year can mean that you’ll enjoy the warmer months without worrying about the consequences of a drained bank account.
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