Introduction
Summer is right around the corner. Kids are out for school, the sun is finally shining, and everyone is prepping for a good time. While summer is often one of the most enjoyable times of the year, it can also be one of the most expensive. Between travel, social events, and higher utility costs, it’s easy for spending to creep up without realizing it.
Here are four summer expenses people often forget to budget for and a few ways to prepare ahead of time.
1. Travel
When we think of travel budgets, most people bring up these two things: airfare & hotel costs.
While these are two big pieces of the travel pie, we tend to neglect thinking about all of the other things that come with travel. Transportation, food, souvenirs, and activities are just a few of the things we usually don’t factor in when we think of how much travel will cost.
If you’re going to a new city, social media makes it easier than ever to get tips from other people about all the things mentioned above. Before you go on your trip, take some time to research how much these expenses might cost and identify areas where you can save money. Doing so will give you a much clearer picture of what the trip will actually cost before you leave.
2. Weddings
End of Spring and beginning of Summer usually account for the start of the “wedding season” which runs all the way through to October. As young professionals, many of us are at the point where friends, family members, and coworkers are getting married.
Thankfully, weddings are events which you usually know about months in advance, sometimes even a year. This way, if you know how many weddings you are expecting to attend in a calendar year, you can put some money aside in a wedding fund. The fund can be used for gifts, travel and other accommodations associated with the ceremony.
Depending on your relationship with whoever is getting married, it’s easy to forget to factor in bachelor/bachelorette parties. These getaways usually cost significantly more than being a guest at the wedding, so its worth evaluating if it makes sense to go depending on your financial situation.
If you’re not sure what the proper amount to budget is, use this link to schedule a free conversation today!
3. Utility Bills
This one is a sneaky one, especially for those of us living in warmer climates like myself. It feels like the summers have been getting hotter every year, and the easiest way for most of us to cool off is to crank that AC all day. That air conditioning comes at a cost, as the average electricity bill in the USA rises anywhere from 20-50% during the summer months, according to electricrates.org
One way to keep the bill down is to have fans running in the house instead of the entire A/C system. It’s also worth checking to see when the last time you replaced your filters are, because when it’s harder for your system to pump air through, it has to work harder, which will result in more energy usage.
4. Extra Dining Out
With better weather around the corner, chances are you will find yourself doing dinner parties or going out to eat a little more than you would during other times of the year.
You don’t want to have to say no to these opportunities to spend time with friends and family, so in order to make sure you can still make it to all the events guilt free, this could be a good time to start doing some meal prepping or cooking more home meals during the week if you don’t already.
If you know you’re going to be spending more on restaurants, happy hours, and weekend activities, look for opportunities to balance things out elsewhere in your budget.
Final Thoughts
Summer should be about making memories, not stressing over money.
By identifying a few of the expenses that tend to show up this time of year and planning for them in advance, you can enjoy vacations, weddings, dinners, and time with family without feeling like your finances are constantly playing catch-up.
Disclosure
This content is provided for informational and educational purposes only and should not be construed as personalized investment, tax, or legal advice. No advisory relationship is created by reading this article. Investment advisory & financial planning services are offered only pursuant to a written agreement through Noor Financial Services, a Registered Investment Adviser. Please consult with a qualified professional regarding your specific financial situation.
