Finances FYI Presented by JPMorgan Chase
With warm summer months just around the corner, it’s easy to daydream about trips, picnics, and carefree days with friends.
But all of these adventures, unfortunately, cost money, and preparing for the more expensive summer months is crucial if you want to enjoy the sunshine without worry.
Summer’s Spending Spree
Summertime comes with many things, and higher costs are unfortunately one of them.
Home Costs
Once hotter temperatures hit, your electrical bill is likely to skyrocket. Increased water usage for gardens and showers can increase that bill, too. Homeowners are often surprised by how much their utility bills jump during the summer months and have forgotten to budget for that increase in their monthly plans.
Travel Plans
Most travel happens over the summer. Families take advantage of the school break, attractions offer special deals, and the great outdoors is open for business. Weddings, reunions, and even weekend camping trips all cost money. Most people underestimate how expensive trips will be once incidentals and unexpected costs crop up.
Longer Days
With longer days come more activities. Families stay out later in the evening, friends want to grab a quick drink after dinner, and impromptu day trips are a fun way to escape. While all of these activities are exciting, they also tend to come with costs. Even an extra dessert once a week can put a noticeable dent in your budget compared to the slower winter months.
Smart Savings Start Now
Knowing that summer cost increases are around the corner gives you an edge; if you start making small changes and plan ahead now, you’ll be able to weather the increased spending without as much anxiety.
Look for Supplies Early
Summer travels and adventures often require specialized equipment. Swim gear, camping supplies, and even wedding attire are all expenses beyond the usual monthly necessities. If you wait until the last minute to find these supplies, you’ll likely end up paying more.
Make a list in April to determine which supplies you need to find, borrow, or purchase for each planned activity. Then, look at low or no-cost options for procuring the gear:
- Family and friends who can loan items
- Local buy-nothing groups
- Thrift stores (many people pull out summer gear in the spring and decide what to give away)
- Rental options (REI has camping gear to rent, and online outlets allow you to rent clothing)
Even if you end up purchasing the items brand new, starting early gives you time to wait for a sale.
Set Up Individual Savings Accounts
Passive savings are one of the easiest ways to shore up extra funds. If you have an online savings account (like Capital One 360 or SmartyPig), you can easily set up different “pots” of money for different goals.
Choose to divert a small amount from each paycheck directly to those accounts. If the transfer is automatic, you won’t forget to move the money. If the amount is small enough, you likely won’t notice the difference.
These micro-transactions won’t bank enough funds for a big trip or adventure, but you’ll likely save enough to cover some of the incidentals that pop up over the summer (like new patio chair cushions or the fourth kiddie pool since the others keep breaking).
Bulk-Buy Food Staples
Many people think of fall and winter as the time to stock up on pantry items, but spring can be the perfect time to “get ahead” before summer prices hit.
Shelf-stable items like flour, sugar, rice, and beans are easy to buy in bulk, one bag at a time, over the spring months. Many stores start making room for summer grocery items in April, so bulk pantry items are often discounted.
Note: Do NOT purchase produce in advance, as this is one item that will be much less expensive during the summer months.
Make Small Home Repairs
Warm spring days are the perfect time to make small home repairs that might help decrease your utility bills during the summer months. Check these items and repair them yourself or call a handyman to come help:
- Fix weather stripping around doors and windows.
- Clean ceiling fans and flip back to the “cooling” option.
- Turn on outside hoses and drip systems to check for leaks and repair.
- Turn down the temperature on the water heater one to three degrees.
- Add blackout curtains to windows that get direct sunlight during the summer.
With a few small adjustments in the spring, you’ll be better prepared to enjoy everything that summer has to offer!
Finances FYI is presented by JPMorgan Chase. JPMorgan Chase is making a $30 billion commitment over the next five years to address some of the largest drivers of the racial wealth divide.
