How to rein in your summer spending
For those of us in the Northern hemisphere, Summer is the best time of year. It’s warm, the sun’s out, it’s vacation time for some of us and it’s time for a drink outdoors.
Apart from the smoke from wildfires due to climate change but I digress.
Summer brings a sense of freedom from work, clothing, and watching our budget. In the enjoyment of summer, it’s just so easy to keep tapping your debit or credit card for just another drink, another spontaneous dinner with friends because ‘it’s so nice outside,’ another concert ticket and of course you have to buy a concert t-shirt, and that random four-day weekend because we’ve been working hard. Plus, all those outfits you need for all these events. (Did I just buy a hat because the sun is strong? Yes.)
Summer spending could be as damaging to our bank accounts as holiday or vacation spending. A poll from LendEDU and a study done by the Chartered Professional Accountants of Canada found that summer is the second most expensive season of the year. That’s two separate studies, one done in 2021 and one done in 2023. It makes sense, though. We’re caught up in seasonal events and the frictionless ability to pay with our cards, that at the end of the month, we stare at our bank accounts wondering what we spent our money on. (A hat.)
Am I here to tell you to stop spending? No, I’m not a hypocrite and summer is short, but I’m going to cover how to plan for it so you can still have a good time and not wreck your financial plan.
Build it into your budget
If you know you’re going to spend the money, revisit your budget and adjust it to suit. Check if you have the room to make these temporary changes without cutting back on other categories like business and household spending or your retirement.
If you don’t have the room, then there are two choices. Four really but let’s look at the first two obvious ones. Either you have to cut from another category like your vacation fund, or you have to cut back on your spending.
The next two options are to find a little more money with a few extra hours of work or a side hustle. Now it’s summer so that may not be something you want to do right now, but it might be something to do in the dark days of winter. You can put it in your summer fund for next year.
Look for cheaper but just as fun alternatives
Everything has gone up in price like food, alcohol, restaurants, and petrol, just to name a few things. One thing that hasn’t increased at the same rate of inflation is wages. Your dollar isn’t worth as much as it was two years ago so how can you have the same amount of fun?
Play host
Hosting at your place can keep costs down, especially if everyone brings something to eat or drink. It’s a bit cheesy but why not theme it with the latest summer cocktail like an Aperol Spritz or a member of the Negroni family?
Alternatively, if you don’t want to deal with the cleanup, head to the nearest park with a blanket, a basket and your friends. If you have nothing to talk about, there’s lazing in the sun and people-watching to pass the time. Wear sunscreen.
Go away off-season
I’m a big fan of travelling off-season because it’s cheaper. I just came back from Spain, Portugal and Italy and yes, it was crowded but not as crowded as it will be in peak summer.
It’s something I can do because I don’t have kids so I don't have to worry about school schedules. If that’s not something you can do, then consider things like using travel points. Another option is to still go on the trip but make it shorter so you’re not paying for extra hotel or Airbnb nights. Also, avoid expensive tourist trips and restaurants.
Clothing
Rent, remix and thrift if you have any weddings or other events during summer. Or you can wear the same outfit multiple times. You’re being sustainable.
I get the appeal of summer, I really do. I’ve got a 20-year anniversary part, a birthday party, drinks with a good friend and a yard sale the week I’m writing this. I’m also sure there will be a spontaneous dinner with one of my friends. There’s something about the sun, warmth and longer days that makes us a little dizzy with delight but cool down, drink some water and think before you book yet another patio get-together.
I’ll be doing my best to practice what I preach.
Housekeeping
Some quick housekeeping. I’ve moved to Buttondown. All subscribers, paid and otherwise, shouldn’t notice a difference. Speaking of subscriptions, there is now an option to do one-time payments of whatever you want. I use this money to pay for this site and for my guest writers because believe me, I make no money off this thing. :D
This week’s readings:
Owe money to the Canada Revenue Agency and can’t afford to pay? Here’s what you should do (Toronto Star)
Honestly, this feels like a lot of work but I can see it being useful if you need to accelerate savings in the short term. Is The '100 Envelope Challenge' Actually A Good Way To Save Money? (Yahoo! Finance)
Listen, sometimes main character energy needs to smothered. The Bridesmaids Going Into Debt for Their Friends’ Weddings (The Cut)
By me: “Can I get scammed through an e-transfer?”—and other questions about protecting yourself from fraud (MoneySense)