3 Simple Ways to Avoid Racking up Debt in the Summer

Summer is one of the most exciting times of the year. Apart from the warmer weather, people look forward to the events, vacations, and outings that summer brings about. It is the season of warmth and sunshine. As such, people want to make sure they make the most of it. Often, that means opening their wallets and shelling out quite a lot to “enjoy summer to the fullest.”

That is the first financial mistake people make during the summer. Whenever this season rolls around, people are a lot looser with their savings. From eating out to expensive vacations, many people fall into the trap of racking up massive debt in such a short season.

People want to enjoy and have fun—which is understandable and the way summer should be spent. However, it should never be at the expense of draining one’s savings. Whether it’s a student or an employed adult, burning money in the summer can severely affect the quality of their life in the months after. 

Luckily there are some very simple things one can do to avoid making mistakes with substantial financial consequences. Here are three simple ways to avoid debt in the summer:

1. Set Aside a Summer Fund.

Everyone should and deserves a nice vacation during the summer. However, most people fail to stay within their budget. Holidays cost a lot of money because of travel expenses, lodging, activities, food, and more. The best way to prepare for the summer is to create a budget dedicated to vacation expenses. 

It is easy to spend too much during the summer. Aside from vacations, events, festivals and more are usually set during this time of year. People should know to start saving for the summer instead of spending everything during this season. People who set aside money way before the season begins can explore new places and have a fun vacation without putting their finances at risk. Aside from setting aside money, people should also limit the money they spend on vacations. 

2. Do Not Go Overboard On Summer Items.

Summer only lasts for a few months, but the debt that comes with huge summer shopping sprees can last longer. It’s almost instinctual for people to update their closets for the summer. While this is understandable, it’s simply not practical. 

Living in a cold country like Canada means that summer clothes and items won’t be of much use once summer is over. One should limit their summer expenses to just a few things, either with last summer’s clothes or sell them for something new. Saving money and avoiding debt in the summer doesn’t mean reducing the fun. It just requires practicality and making smart financial decisions.

3. Set a Food Expense Limit.

A lot of new and exciting restaurants and food stalls always pop up in the summer months. This is both a blessing and a curse. It’s excellent for food enthusiasts and anyone looking for something new or familiar. However, constantly eating out during the summer can hurt a person’s financial situation.

Eating out is a luxury, just like vacations and events. People need to create budgets and set limits on what they should spend—not just in summer, but all year round. It’s important that people don’t deprive themselves of these small luxuries. Instead, they should prepare funds and indulge every once and a while. 

Conclusion

Summer is the time to let go and be more carefree. However, people need to understand that their financial responsibilities do not take a break during the summer. There are plenty of ways to enjoy summer without compromising one’s financial stability. Summer brings warmth, joy and plenty of temptations. The best way to avoid racking up debt over the summer is to keep a budget and track expenses.

DebtHelpers.ca is a company in Canada dedicated to providing people with customized debt solutions, consulting services, and more. The company hopes to give people the chance to achieve financial independence and stability by managing their debts first. Browse through our website to see our resources and advice on how to handle debt.