3 SMART MOVES TO MAKE THIS SUMMER
For most people, summertime conjures up images of
lounging on the beach or going to parties. With the relaxed attitude of the
season, it's easy to justify splurges on sandals, swimwear and other summertime
treats. A lot of times, we'll see expenses increase in the summer because
people are looking to take a vacation and enjoy the warmer weather. But you
don't want a financial lifestyle that leaves you hard-pressed. With a little
time and discipline, your finances can be improved come fall. Here's a look at several
savvy money moves to make this summer:
1.
Review your spending. July 1 marks the halfway point of the
year, so it's a good opportunity to analyze your spending over the past six
months and adjust as needed. Also consider the following questions: "Are
you spending money on things that really matter? Are you being intentional with
your money? Are there leaks? Did you end up having unexpected expenses?"
Identify
your financial and personal goals and determine whether your spending aligns
with those goals. This can help ensure you're "consciously funneling money
to the things that are important instead of frittering money on things that
aren't important. For instance, you're spending money on a car, or gym
membership or any other thing you no longer use. Dispose of these expenses so
that money will be available for needful things.
2. Start
planning for the holidays.
To avoid holiday-related debt, start saving now. Create an account specifically
earmarked for holiday purchases such as gifts and travel. Start with the amount
spent last year and adjust up or down, depending on your anticipated spending.
Then divide by the number of months until the holidays. The whole idea is that you're setting aside money
each month to meet those expenses. This will prevent you from having a huge
hole in your pocket.
Another
reason to start planning now is to avoid overspending on last-minute gifts or
travel purchases when time is at hand and you only have a few options. If
you're planning to save money by knitting, sewing, painting or otherwise making
gifts, it's also smart to give yourself a good head start.
3.
Revisit your retirement contributions. Start contributing to a retirement
account, if you are not contributing to a retirement account, start now.
Compound interest will be more robust, if you have years of contribution on
your side. It's not how much you save, but how long. Starting sooner than later
will pay huge dividends.
If
you are contributing to an employer-sponsored retirement account such as
superannuation fund, increase your contributions, especially if you aren't
getting the full employer match available to you. Some employers allow you to
adjust retirement withholdings at any time, while others may only give you the
option twice a year. If your employer operates on the fiscal year calendar,
July 1 may be a key date to remember for tweaking your withholding.