5 Tips for Summer FUN Savings
Jul 19 2019
Summer ramps up spending, but that doesn’t mean your overall financial health needs to take a hit. Building Brave expert Bridget Todd of Financial Gym shares tips for staying on track:
Build a summer budget. It’s not too late! Set your summer fun budget (vacation, concert tickets, etc) and figure out how many paychecks you will receive between now and then. Determine how much money you can set aside from each paycheck in order to pay for your trip. Put that money into a separate savings account or envelope so that you don’t spend it on something else.
- Sign-up for a credit card that earns you points. For responsible card users, TONS of opportunities exist to earn bonus points that can help pay for your summer fun. Delta Gold American Express offers 60,000 points if you spend $2,000 within the first three months. The Capital One Venture card earns you 50,000 if you spend $3,000 in the first three months. The Chase Sapphire Reserve or Preferred card earn you 50,000 points if you spend $4,000 in the first three months. All are great options for reducing the cost of summer travel.
- No spend and cash only days. Cutback now to save and spend later! It’s as simple as it sounds: Pick 2-3 days per week designated as no spend or cash only days. On no spend days you don’t bring any cards or cash with you. You eat your meals at home (or pack them to go), and you don’t spend money anywhere else that day. On cash only days you set a specific goal, say $40 at the bar on Friday, and bring only that amount of cash with you. When it’s gone then call it a night!
- Increase contributions to your investment/retirement portfolios now. Extra cash? Don’t leave it in your bank account to spend this summer. Instead be strategic with your money; invest it in your personal investment account or make a contribution to you IRA. If you don’t have either, consider increasing your contribution to your 401k and you will automatically save. Your monthly take home will decrease, forcing you to cut wasteful spending.
- Make your money work for you. Look at your bank accounts. Do you have $10,000 sitting in a regular savings account barely earning interest? It can earn more in an online account like Ally, Marcus, or Capital One 360, which offer upwards of 2% interest.
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