Summer is just around the corner, and with it comes a host of exciting activities, vacations, and events. However, all of this fun can quickly become costly if you don't prepare your finances beforehand. In this blog post, we'll discuss three key strategies for preparing your money for summer: using buckets or sinking funds to save money, planning your summer intentionally, and being honest with your friends and family about what you can spend.
Using Buckets or Sinking Funds to Save Money Before Summer
One effective way to prepare your finances for summer is to use buckets or sinking funds. Essentially, this involves setting aside money each month for a specific purpose or expense. For example, you might have a "summer fun" bucket where you save money for activities like concerts, festivals, or trips to the beach.
To get started with buckets or sinking funds, begin by identifying your anticipated summer expenses. This might include travel costs, event tickets, new summer clothes, and more. Once you have a list of expenses, create a separate bucket or sinking fund for each one.
Then you can reverse engineer the expenses to identify how much you need and how much time you have to save. For example, if you plan to spend $500 on summer clothes, and you have three months until summer, you'll need to save about $167 each month. By breaking down your expenses in this way, you can avoid the stress of trying to come up with a large sum of money all at once.
One way to automate your savings is to set up automatic transfers from your checking account to your bucket or sinking fund accounts. This way, you won't have to remember to transfer the money each month - it will happen automatically.
My wife and I set up our sinking funds as we budget. We write down our savings goals for each category and then as we are budgeting it makes it very easy to hit those goals. This way we are always saving for the fun times ahead and as we mentioned in this podcast episode, you can spend the money guilt free because you had a plan for it.
Planning Your Summer Intentionally
Another important aspect of preparing your money for summer is to plan your activities intentionally. Rather than trying to do everything, focus on the experiences that are most important to you. This can help you avoid overspending on activities that don't bring you much joy.
Begin by identifying your top priorities for the summer. This might include a family vacation, a music festival, or simply spending time with loved ones. Next, create a budget for each activity or event. Be sure to include all related expenses, such as travel, lodging, food, and entertainment.
As you plan your summer, be open to alternative options that may be less expensive. For example, instead of booking an expensive hotel, consider renting a vacation home or camping. Instead of eating out every night, plan to cook meals at home or have picnics in the park. These small adjustments can add up to significant savings.
Be Honest With Your Friends and Family About What You Can Spend
Finally, it's important to be honest with your friends and family about what you can spend during the summer. It's easy to get caught up in the excitement of planning trips and events, but overspending can quickly lead to financial stress.
One way to avoid this is to have open and honest conversations about your budget and spending limits. Let your loved ones know what you can afford, and be clear about any financial goals you're working towards. This can help set expectations and avoid awkward conversations or misunderstandings later on.
Additionally, consider alternative ways to spend time with your friends and family that don't involve spending a lot of money. For example, instead of going out for expensive meals, plan a potluck or have a BBQ at home. Rather than booking an expensive trip, consider a staycation or exploring your local area. There are likely free events going on all summer. You just have to put in a little bit of work to find them.
In conclusion, preparing your money for summer involves a combination of saving, planning, and being honest with yourself and others. By using buckets or sinking funds, planning your activities intentionally, and setting clear spending limits with your loved ones, you can enjoy a fun-filled summer without breaking the bank. Remember, the most important aspect of summer is the memories you create with your loved ones, not how much money you spent. By being intentional with your spending and focusing on what's truly important to you, you can have a summer filled with joy and happiness, without sacrificing your financial well-being.
Learn more about Chris Chapman
In episode 87, Chris Chapman joined me to talk about how to prep our money for the summer. He shared some great ideas about the topic. Especially one around making sure to be aware of sub-purchases. He recently got a dog and then noticed his gas bill was higher. This was because they were driving to a dog park more. Be aware of those things as we head into summer!
You can find Chris on Instagram @ChrisChapChap
Here are the 6 steps to increasing your income that Chris shared on the podcast
1. DECIDE that you want to be wealthy and that you want to be to increase your income. So many ppl in a fixed mindset, complaining, wishing they had it better, wishing for me, stop complaining and DECIDE 2. BELIEVE that it is possible 3. Analyze what skill sets, characteristics, and attributes that you have. 4. Become addicted to learning. 5. Become OBSESSED with becoming the best possible version of yourself that there is. 6. Find a reason bigger than just yourself to motivate you to make more money - for me.
Money Talk with Skyler Fleming
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