Staying on budget this summer

At MMT Chartered Professional Accountants we embrace change.

Summertime is finally here, and that means getting outside on new adventures. The only problem with summer is that the endless opportunities to join friends for a barbecue or spend a night away from home can really add up. If you’re not careful, you may find that you’ve strayed way off budget by the time the fall rolls around.

You’ve likely heard of the ‘latte factor’, the concept that small, everyday expenses can accumulate over time and impact our financial security. That seemingly insignificant daily cup of java might actually not be insignificant at all, if you take the time to add up each purchase over the course of a year.

Summer means lattes … but also iced coffees, patio drinks, ice cream stops, camping trips, concert tickets, entertainment for the kids, the list goes on. If you don’t pay attention to your spending, you might find that you’re well off your financial targets when you stop to take account of how much your summer activities actually cost.

Partly, it’s the frequency of these small expenses that add up. It’s also because we tend not to track smaller purchases and we often make them on impulse, which means we aren’t attentive enough to this kind of spending. And the more often we indulge in small purchases that give us instant gratification, the less attuned we become over time to how we allocate money for larger expenses, as well.

So how do you enjoy the summer months without going over budget? Awareness and conscious decision-making can help combat the so-called latte factor and prevent overspending. This might feel particularly challenging during the summertime, with so many opportunities for vacations, outdoor activities, and social gatherings. These tips will help you to curb spending that could have been allocated for more substantial long-term financial priorities.

Set a budget

This is an obvious one, but it’s essential to start by creating a realistic budget specifically for the summer season. Determine how much you can afford to spend on categories like travel, entertainment, and special events. Having a clear budget will provide you with a framework that informs your spending decisions.

Plan your activities

It’s helpful to research and plan your summer activities in advance. Look for free or low-cost events and local attractions that align with your family’s interests. Becoming familiar with your own community allows you to take advantage of events, parks, and public spaces close to home that don’t have a hefty price tag.

Pack meals and snacks

It’s not just the lattes that add up—eating out or buying drinks on the go can wind up costing significantly more than bringing food from home. Instead of relying on expensive restaurants or fast food options, pack your own healthy and affordable picnics.

Seek out discounts

Take advantage of discounts, coupons, and summer promotions. Summer is the high season for tourism and there are often special offers for attractions, accommodations, and transportation. If you have points to spend on various loyalty programs or apps, now might be the time to use them to offset any additional summer spending you do.

Track your spending

It’s essential that you keep an eye on your spending throughout the summer if you don’t want to overspend. Regularly review your spending against your budget and identify areas where you might be able to cut back. If you find it hard to keep tabs, use a budgeting app or financial tracking tool to help you monitor your progress.

Accountants can work with you to create a comprehensive budget tailored specifically for your needs, including how to allocate your spending in the summer season. By analyzing your income, expenses, and financial goals, you’ll be prepared to set realistic spending limits with a budget that guides your financial decisions and ensures that you stay within your means.

We can also help you to review your financial situation realistically and provide insights into where you may be overspending or where there is room for potential savings. And if you’re planning a summer vacation or considering major expenses, we can assess the affordability of different options. This can help you make prudent choices that align with your financial goals.

And beyond the summer months, we’ll provide ongoing financial education and guidance to improve your overall financial literacy, leaving you better equipped to manage your budget throughout the year. Don’t hesitate—contact MMT Chartered Professional Accountants and get your spending on track, starting today.