5 Financial Goals To Achieve Before Summer Ends
It’s inevitable to spend more money during the summer than you would at other times of the year. Americans spend nearly $600 more during the summer months, according to Nav.it Money, making summer the second most expensive season (just behind winter).
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Whether it’s summer holidays, vacation or travel expenses, it’s easy to lose hold of your budget. To get back on track before summer ends and fall begins, here are the goals you should strive to achieve with your finances before the end of the season.
Begin Saving for Retirement
If you haven’t already, it may be financially beneficial to start saving up for retirement now. Once fall begins, school and work schedules may put any financial plans for retirement on the back burner.
“Even setting up one investment for your retirement is a start,” said Scott Lieberman, founder of Touchdown Money. “Pull together some excess money and put it toward investing for the future. That can either be in a retirement account or by investing in a mutual fund or stock.”
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Plan Next Year’s Goals
Whether it’s for next year’s vacation or any other goals you want to accomplish, it’s never too early to start saving and planning ahead for your longer-term financial goals.
“The best way to really enjoy yourself on a vacation is to save for it, plan for it and make sure you can afford it,” Lieberman said. “Planning and saving for a goal can also make it more likely that you’ll achieve it. Planning vacations for the upcoming year six to 12 months in advance can really help you save money in the long run.”
Start an Emergency Fund
Summer can come with many unexpected purchases, such as car repairs from a road trip or medical costs from outdoor activities. By building up your emergency savings, you can be prepared to cover these costs.
“By strengthening your emergency savings, you have a backup in the event that something happens,” said Erika Kullberg, attorney, personal finance expert and creator of Erika.com. “Ultimately, you should try to reach about three to six months’ worth of expenses in your emergency fund. However, any boost you can give it is an improvement.”
You might also consider creating a savings fund intended for smaller purchases that can pop up later in the year.
“Setting up saving funds for things like school supplies, winter clothes or home repairs is a good way to plan ahead,” said Taylor Price, Gen Z personal finance expert and founder of Priceless Tay. “You can escape the last-minute penny scraping by putting money into these funds now, and earn interest if it’s stored in a high-yield savings account.”
Review Your Budget for the Rest of the Year
Now that we’re halfway through the year, it’s a good time to review and make any necessary changes to your budget for the remainder of the year.
“Review your total annual income, fixed expenses and variable spending in order to identify additional areas where you may want to cut back — or add to — your budget,” Kullberg said.
Pay Off Any High-Interest Debt
Paying off any high-interest debt that’s been accumulated over the summer is a crucial goal to achieve before the season is over. Whether it’s paying off credit card bills from travel costs or paying off a personal loan for a large purchase, doing so now allows you to avoid any high-interest charges and therefore saves you more money.
“Clearing debt this summer will also open up your budget for fall expenses, such as clothes and supplies for school and the upcoming holiday preparations,” Kullberg said.
Many consumers increase their spending in the summer, so it’s important to manage your finances wisely and ensure you’re getting the most out of your money.
“Using credit cards responsibly for your spending has its benefits like cash-back rewards programs or card-linked offers to save even more,” Price said. “Remember, you should always pay your credit cards on time and in full.”
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