How To Avoid Overspending This Summer
As the weather gets nice, people finally get the chance to do all their long-awaited favorite summer activities. Whether it’s shopping, going out to eat, attending local outdoor events or planning a vacation, summer finally gives people the chance to leave their homes and do things that allow them to enjoy the sunshine. However, with these warmer months comes higher costs, especially due to inflation, according to Independent Grocers Alliance (IGA).
As mentioned in a summer travel survey by Deloitte, “booking intentions are up across all major travel segments.” There are several reasons why Americans spend more money during the summer, but there are also several ways to avoid it.
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Why Consumers Spend More in the Summer
Whether for a weeks-long vacation or a weekend getaway, travel is one of the biggest causes of summertime overspending. In fact, according to Forbes, consumers plan to spend more money on travel in 2024 despite the rising costs. Because of the warm weather and students having a break from school, many people choose to plan significant trips during this time. Thus, their spendings tend to increase greatly.
Another case of summer splurging is when people overlook the small, frequent purchases that are often made in the summer. “These could be extra ice-creams, cool drinks or dining out more frequently with the warmer weather,” said Nick Drewe, founder and CEO of Wethrift, a site that publishes guides and helps shoppers save money.
Furthermore, summer overspending most commonly occurs with outdoor activities and social events.
“The warm weather encourages more frequent outings such as barbecues, beach vacations and travel adventures. Airfare and gas prices often peak during the summer due to increased demand, significantly raising travel costs,” said Dennis Shirshikov, head of growth at GoSummer and finance professor at the City University of New York.
Lastly, another reason for increased spending in the summertime is increased outdoor home projects.
“The desire to maximize the enjoyment of summer leads many to invest in home improvements like landscaping or new patio furniture, which can quickly escalate in costs,” Shirshikov said.
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How To Avoid Overspending in the Summer
One way to decrease your chances of spending too much money this summer is to create a budget well in advance. This is especially important for larger purchases, such as vacations.
“Set aside funds specifically for summer activities throughout the year. This proactive approach helps spread the financial impact over several months, making it less of a burden during the summer itself,” Shirshikov said.
To ensure you stick to your budget, it’s important to account for small purchases as well – not just the big ones. “Always plan for the small purchases. A grand budget saving plan can falter on coffee and take-outs if not accounted for,” Drewe said. “To avoid overspending, consider using discount codes or coupons for online purchases.”
Another way to avoid overspending is to track your spending habits by using alerts or spending trackers. Using these features can help consumers become more aware of their finances.
“Many financial apps offer features that alert you when you’re approaching your budget limit for specific categories, like dining out or entertainment,” Shirshikov said.
While summer often calls for heavier expenses, this doesn’t mean you have to pay for them at full price. Even during the busy summer months, there are travel accommodations and other activities that can be booked at a discounted rate during off-peak times.
“Mid-week flights and accommodations are generally less expensive than weekend bookings,” Shirshikov said. “Additionally, many businesses offer early booking discounts, which can be advantageous for planned summer trips.”
Lastly, a final way to limit your spending this summer is to take advantage of free or low-cost local activities. By going to local parks, community events or other affordable activities, one can enjoy their summer entertainment without the hefty price tag that often comes with travel and tourism.
By keeping these strategies in mind, not only will one be able to reduce their risk of spending too much money this summer, but they will be able to further enjoy their summer knowing that they’re free of the financial stress that comes with overspending.
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This article originally appeared on GOBankingRates.com: How To Avoid Overspending This Summer
