Summer Spending: How to Have Fun on a Budget

With summer in full swing, Many Americans are spending more on discretionary things like eating out, clothing, and travel. We get it – summer is the perfect time to unwind, splurge, and get a much-needed vacation. Kinetic Credit Union is here to help you keep moving toward your financial goals, even during the fun-in-the-sun season. Implement these simple steps to keep your spending in check while still having a summer to remember.

Determine Your Financial Goals to Stay Motivated

Having a goal is key to staying motivated and will help you make smart spending choices all summer. Start planning for your summer by determining your financial goal (or goals). Maybe you want to pay down debt or save for a big purchase like a house or car. Maybe you want to increase your income, and you need to pay for education, training, or equipment to do that. Maybe you’re approaching retirement and you want to turbocharge your retirement investments on the home stretch. Check out Kinetic’s savings goal calculator to help you figure out your plan.

Whatever the goal, make sure it is specific and measurable. For example, “I need to save $10,000 for education expenses by the end of next year” is a much more actionable goal than “I need to start saving more.”

Once you know what your goals are, you can adjust your summer plan accordingly. If you have major expenses on the horizon, you might not be able to allocate a lot of money for vacation this year, and that’s OK – keep your eyes on the prize. Or, this might be a year that you have the financial margin to really treat yourself. Writing down your financial goals is the first step to setting your spending limits.

Decide Where You Want to Splurge This Summer

Once you’ve reviewed your financial goals, you’ll have a better sense of how much margin you have for discretionary spending this summer. The best way to both have a great time this summer and make smart financial choices is to intentionally choose a few meaningful things to splurge on, and say no to impulse spending.

You might choose to prioritize a vacation, seeing live music, spending time in nature, doing a home improvement project, upgrading your wardrobe for warm weather, or anything else that matters to you. Just make sure to decide in advance what you value most, so you can more easily say no to spending that won’t add as much value to your life.

Keep Your Vacations on a Budget

Chances are you’ll end up doing at least some travel this summer. Before you start packing your bags, identify exactly what you want to spend, then make a plan to stay on budget. The possibilities are endless, and there are tons of resources dedicated to cost-effective travel, but here are a few simple ideas:

Share costs with friends and family. Rental cars and condos aren’t nearly as pricey when you’re splitting the tab!

Prep some of your own food. Even if it’s just car snacks and breakfasts, you can seriously cut down on your vacation costs and eat healthier if you do some food prep while you’re on the road.

Drive rather than fly if possible. Particularly if you have several people in your family, you can save a fortune by driving rather than flying to your destination. Cut out airfare and car rentals, plus avoid the risk of missed or delayed flights or lost bags, and increase your space for luggage.

Look for discounts. Many attractions like parks and zoos have free or discounted admission days, and you might qualify for discounts if you are a student, veteran, senior citizen, first responder, educator, etc.

Consider off-peak travel. Research your destination and determine if you can visit at a less-busy time. Summer tends to be the busy season in many places, but if you can avoid the craziest times (like Labor Day, for example), you might be able to find more affordable accommodations. Sometimes you can find better deals midweek than on weekends.

Stay with friends and family. If you can, spending even just a couple of nights[1]  of your trip at the home of a friend or relative can save you a lot, especially if you’re vacationing in a pricey area. Be sure to say thank you with a small host/hostess gift or by taking your host(s) to dinner!

Consider a Staycation

Even with all the tips above, you might find your vacation is looking a little pricey, or maybe you plan on taking time off more than once this summer. A staycation is a great way to unwind without breaking the bank. Depending on where you live, you may be able to find lots of local attractions like zoos, museums, art galleries, nature preserves, restaurants, outdoor adventures, etc. By staying at home, you avoid the hassle of long-distance travel and save a ton of money on airfare, car rentals, and lodging. Save a bunch of that cash, and use the rest of it to go out for some really nice meals, book a day at the spa, head to the water park, or whatever else you find to do in your area! Staycations are a fun way to get to know your neighborhood better while keeping your budget intact.

Keep Summer Shopping Under Control

Whether you’re doing a lot of traveling this summer or staying close to home, chances are you’ll be doing some shopping. The weather is warm, the sale signs are up, and it’s easy to overspend! There’s nothing wrong with having some fun and treating yourself this summer, but you want to be sure that when you’re spending money, you’re getting value. Try these tips to help you stick to your shopping budget, so you can have fun and feel good about your spending habits.

If you are tempted to impulse purchase something, wait a week and see if you still have to have it.

Set yourself a spending limit for discretionary shopping and stick to it (either a weekly or monthly amount or a total for the whole summer can work).

Need some new outfits for the warm weather? Try thrift stores and off-price retailers before you head to pricier shops or websites. You may not find everything on the bargain rack, but it’s a great place to start.

Manage Your Money With Kinetic

Armed with the tips above, you should be well on your way to a fun and financially savvy summer. Kinetic Credit Union is here to support you in your goals with a wide array of services, from checking and savings accounts to business services, home and auto loans, and beyond.