Most often, the hardest part about meeting your financial goals isn’t achieving the goal itself—it’s holding yourself accountable. Being willing to log into your bank account and see how much you actually spent on food this past week is one of the most important parts of staying on track.
Whatever your financial goals were at the beginning of the year, now is a great time to check in and see whether you’re on pace or could use a little nudge in the right direction.
Everyone’s financial journey is different, but budgeting is one of the best ways to determine whether your day-to-day spending aligns with your long-term goals. Here’s a quick refresher on a popular budgeting framework. Then it’s up to you to review your spending habits and see how you’re doing (you’ve got this!).
One widely used budgeting method is the 50-30-20 framework. This means:
- 50% of your income goes toward necessities, such as rent, utilities, groceries, and transportation.
- 20% goes toward savings. Consider creating separate savings accounts for different goals. One might be called “Baecation,” another “New TV,” and, most importantly, your emergency fund. Many financial experts recommend building an emergency fund that can cover three to six months of essential living expenses to help prepare for life’s unexpected events.
- The remaining 30% is your “fun fund.” This is the money you can use to enjoy yourself because you work hard for it. You earn money to spend it—but spending responsibly can help you enjoy today while staying on track for tomorrow.
Now, take a look at your recent transactions. Are your spending habits supporting your financial goals?
Summer is here, which means it’s the perfect time to get outside and enjoy everything the season has to offer. But these days, it can feel like you spend $20 just by walking out the door. While those spontaneous tap-to-pay purchases may not seem like much in the moment, they can quickly add up and quietly derail your financial goals.
That doesn’t mean you shouldn’t enjoy your summer—you absolutely should. It simply means staying mindful of your spending and keeping your eye on the prize, whatever that may be for you.
Here are a few of my favorite ways to save money during the summer:
Cut Down on Your Cooling Bill
- Adjust your thermostat. According to the U.S. Department of Energy, setting your thermostat 7 to 10 degrees higher than your normal setting for about eight hours a day—such as while you’re at work or away from home during the summer—can help reduce energy use and save up to 10% annually on heating and cooling costs. Learn more from the DOE’s Energy Saver guide: https://www.energy.gov/save/home-upgrades.
- Use fans strategically. Fans don’t actually cool a room—they cool your skin through the wind-chill effect. Turn them off when you leave the room and make sure ceiling fans are spinning counterclockwise during the summer to push cool air downward.
- Block out the sun. Close your blinds or curtains during the hottest parts of the day to reduce indoor heat and lessen the need for air conditioning later.
Master Low-Cost Summer Fun
- Don’t overlook your local library. Reading is one of the best summer activities, and many libraries offer much more than books. From free museums and zoo passes to air-conditioned events and community programs, your library can be a great source of free entertainment.
- Find “Movies in the Park.” Skip expensive movie tickets and enjoy free outdoor movie nights hosted by local communities throughout the summer.
- Take advantage of happy hour. Many restaurants offer discounted food and drinks during happy hour, making it an easy way to enjoy a night out while spending less.
Travel Smarter
- Travel later in the season. If your schedule is flexible, traveling during the last week of August or early September may be less expensive than traveling during the peak summer months of June and July as demand begins to decline.
- Lighten your vehicle. Fuel prices often trend higher during the summer travel season. Removing unnecessary items from your trunk may help improve fuel efficiency and reduce fuel costs over time.
Now that you’re ready for a summer of smart saving, you can enjoy the warm weather without burning a hole in your pocket. You’ll also free up cash for holiday spending—which is closer than you might think. Start planning your holiday purchases now and save a little along the way, so last-minute expenses don’t catch you by surprise.
Most importantly, remember that fun and healthy financial habits can absolutely coexist. With a plan, a budget, and a little accountability, you can enjoy today while still preparing for tomorrow.