Summer is a time for holidays, trips and big events. It’s crucial to prepare well so that you don’t find yourself on a budget crunch or in a money slump when you should be feeling comfortable about your spending! Of course, you definitely don’t want to miss out on those exciting days out because you’re skint. To prevent the thought of your bank account holding you prisoner this holiday, here are some steps to getting your finances in order just in time for summer.
1. Check your finances
The first step to getting your finances in order is to look over your spending habits. It’s best to be aware of your spending habits so that you can do something about them. Break down and monitor what you spend your money on. That way you can find out what is blowing your budget what spending habits you can sacrifice, like any of those unnecessary luxuries you might often purchase. It’s also a good way of identifying whether the things you are buying are things that actually bring value to you. If they don’t, then ditch them.
2. Repay any current debts
If you have any debts to pay then now is the time to do so. Try to focus on clearing your debts before you start planning and saving for the holiday season. Once you’ve got your outstanding fees sorted, you won’t have to worry about any money that you might have had to give up later.
3. Do your research
Look up and estimate the cost of the activities that you want to do. This could be a holiday you’re planning to go on or tickets to a show you want to see. If you know the roundabout cost then you can plan effectively to save for it. This way you can be more realistic about what you have to save up for and how you can manage your finances. It will also help you foresee any extra costs or challenges ahead of time. You may even get better deals if you book any trips earlier!
4. Make a plan
After you’ve done your research, you can start to make plans for how you are going to go about saving for those special activities. Set goals for the things you want to pay for. These can be small or big goals. One good thing about making a plan is that it can keep you motivated to keep saving!
5. Create a budget
The best way to create a budget is to know your limits. Now that you know your spending habits, you can identify where you can start saving without sacrificing too much. Make sure the ratio of what goes out of your account doesn’t exceed what comes in. Don’t worry if you’re not sure or you don’t have time to budget effectively. There are loads of apps out there that can do it for you!
6. Make a savings account
Set aside some money every month so that you can build up and accumulate money as you go along. Making a savings account will ensure you make smarter choices about your money, as it will remind you to be consistent with what you put in. Remember to be patient and you’ll get even more excited as you see it building up!
7. Take advantage of sales
A great way you can save by buying discounted items instead of full price ones when you’re shopping. Hey, you might even end up with more money than you thought you would.
8. Get a side hustle
Do something on the side of your normal working life to earn an extra bit of money to help fund yourself. This could include finding some freelance work, for example.
If you get these steps right, you’ll have a decent cushion to fund your summer activities in no time!
How will you get your finances in order this summer? Tell us in the comments!
Featured Image Source: www.weheartit.com
Lauren is a freelance writer who aspires to be an editor-in-chief of her own publication. Her interests lie in culture, people and behaviour. Her favourite exercise routine is laughing (it really works the abs!).