The lasting effect of COVID-19 is influencing how we spend. Economists have coined the term “funflation” to describe people spending more on experiences instead of conservatively planning for the future. Coupled with sunny weather, you may find you’re more apt to be social and active outside this summer. If you’ve created a budget and are trying to stick to it, well-thought-out summer saving habits will keep you from overspending.
Summer Saving Habits
The best habits are the ones you’ll keep without feeling like you’re sacrificing too much in the process. Being candid with yourself about your daily habits, bandwidth, and what is occupying your attention will help you develop a routine that works for you and prevents you from wasting money.
1. Be aware of your emotional spending habits.
In an interview, financial psychologist and certified financial planner Brad Klontz gave CNBC a few tips. “Is this something I can afford? Is this something I need?” he says. “Where am I going to put it? And how am I going to feel about this tomorrow?”
He adds that you should consider a purchase for 24 hours before buying and redirect your emotions and spending toward the lively future you envision for yourself.
2. Find free or low-cost “third places.”
Where do you go when you’re not at work or home? Finding accessible lounge spaces can do wonders for your mental health and bank account. You might have a nice park near you, a beach, a library, free museum days, hiking trails, or gallery openings. Tapping into your community, you could also rotate hosting gatherings with your friends.
3. Shop off-season or during sales.
Anticipate your needs by buying a winter coat towards the end of winter or purchasing anything you regularly need during an annual or biannual sale. This also goes for traveling off-season, getting happy hour deals from your favorite restaurant, and looking for discounts on what you want.
4. Redefine your means.
Consider what changes you can make to allow your budget to work for you. That may come from lowering your expenses or increasing your income. You could temporarily relocate to a place with cheaper monthly payments. Or maybe it’s time to ask for a raise or get another job where you’ll be paid more.
5. Spend guilt-free on the things that are important to you.
If you’re using that gym membership, it’s adding to your quality of life. If you’ve saved for a trip, taking time off to enjoy somewhere different is also essential. Being a conscious spender, giving yourself leeway to breathe, and not worrying about some of the things you spend on will help you have a better relationship with money.
These summer saving habits can help you put your life and your finances in balance. When you’re making choices and spending in alignment with your lifestyle, your choices won’t feel like a sacrifice. If you can be honest with yourself about what’s happening and where your locus of control lies, you can make healthy decisions that care for your real needs.
The author’s content and opinions have not been pre-reviewed, approved or endorsed by Discover.
cv ksa: Great job on this post!