Summer is almost here—or at least, that’s what they keep telling us. Here in Ontario, we’ve been having a dreary spring, with the sunny days outnumbered by lots of chilly and overcast ones. To say that we’re ready to see some warmer weather would be a massive understatement. We need some warmer weather, pronto.
Depending on where you live, you may not be quite as starved for sunshine as we are. But even if the climate is a little more temperate in your area, chances are you’re still waiting with bated breath for summer to officially kick off. Summer is the fun season—a few precious months of the year where everybody has a built-in justification to let loose. This is the time to relax, to travel, to sip an extra glass of wine in the evening. Maybe your kids are off at sleepaway camp for a week or two. Maybe your workload is a little lighter while clients jet off for vacation. Whatever your circumstances, summer is supposed to be a season of decadence.
The summer spending trap
And that’s the problem. From a financial planning perspective, summer is a risky time of year, rife with temptations and convenient excuses to spend more money than we usually would. Beyond the obvious big-ticket culprits, like travel, there are also the relatively small indulgences: the iced latte on your way into work, the weekend six-packs to bring to parties and outdoor hangouts, the cute new bathing suit or summery outfit that you can’t resist.
All those little treats can really add up over time, and before you know it, all the money you’d planned on putting toward retirement or rainy days is gone.
Balancing fun and finances
Here’s the good news: you can still have a great summer while prioritizing your Aging & End of Life saving goals. With just a pinch of intention and a splash of thriftiness, you can set yourself up for a decadent summer without falling too far behind on your plans.
Keep scrolling for a few tips on how to be mindful about your spending this summer, without compromising on the fun stuff.
1. Make yourself a budget
This might seem obvious, but it’s worth emphasizing: make yourself a proper budget. Take a look at your income, your expenses, and your savings goals, then figure out how much wiggle room you have this summer.
When it comes to budgeting, you might find it useful to work with a financial professional. A Legacy Coordinator or a financial planner can help you pin down your long- and short-term goals, and then figure out how to achieve them.
2. Think local
Summer is the peak travel season. From June through September, it seems like everybody is jetting off to tropical resorts or hopping on fancy cruise ships for an extravagant vacation. The FOMO (fear of missing out) is enough to push us toward overspending, booking trips that cut into our saving goals—or even trips that we can’t afford without taking on debt.
A recent poll found that 83% of American travellers pay for some or all of their trip using a credit card. Among those, 20% were not even planning to pay back the balance when it came due, meaning they were assuming they would be paying down interest on it. And keep in mind, this poll only asked people about their intentions. Presumably, the percentage of people who actually pay off their balance when it’s due is even lower, especially considering how easy it is to go over budget when you’re on vacation.
In short, summer travel can be a huge money sink. At the same time, you might feel like you’re missing out if you’re not having outdoor adventures, especially when your Instagram feed is plastered with other people’s vacation photos. Where’s the middle ground?
If you have a touch of the wanderlust but know you can’t afford a huge trip right now, consider a more local trip instead. That could mean more excursions in your local area: exploring new neighbourhoods, taking a day trip to a nearby town, driving to a provincial park for some camping or hiking. It could also mean taking trips to places that are a little closer afield than, say, the Bahamas or Mexico. There are plenty of getaways available that don’t involve spending thousands, or even hundreds of dollars on plane tickets and all-inclusive resorts.
3. Embrace DIY
Never has humankind had access to so much information as we do right now—and within those troves of knowledge are countless guides and recipes you can use to do it yourself. Instead of going out for cocktails every weekend with your girlfriends, invite them over and serve them a batched cocktail that’s just as delicious… and a fraction of the cost you’d pay at a bar. Or, if you want to throw a summer party without breaking the bank, invite your friends and family to a potluck-style cookout. Ask everyone to bring one dish, while you host and provide drinks. You don’t need to spend truckloads of money to indulge in summer fun.
4. Give yourself permission to break the rules (a little)
Budgeting is always king when it comes to saving for retirement and other Aging & End of Life concerns. That said… keep in mind that your budget doesn’t necessarily have to stay exactly the same all the time. Ultimately, what’s important here is that you are staying aware of how much money you’re spending vs. putting away.
Let’s face it: life is short, and the prospect of sailing through a whole summer without any indulgence can be depressing. If getting the most out of this season is important to you, but you don’t have a lot of financial leeway, it might be worth giving yourself permission to reallocate some of your money toward fun stuff. It’s better to plan ahead for a few months of reduced retirement savings if it means you’re less likely to give into temptation and go on a sudden spending binge.
So, let’s say that after taking a look at the numbers, you realize you don’t have a lot left over after saving to splurge on any summer fun, and that’s bumming you out. It might be worth making a small, intentional adjustment to your saving plans, and redirecting a small portion of your savings goal toward summer fun. This way, you’ll feel you’re getting the most out of your summer without losing sight of your financial health. That will help you keep up your savings goals in the long term.
At the end of the day, sustainability is more important than rigid adherence to your current financial plan. Don’t beat yourself up if you fall a little bit short of your savings goals this summer. Just remember to get back up on that horse.
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