Set up a savings plan as summer starts
Summer is a season during which people tend to spend a lot of money. The kids are out of school, there's more to do, and people just tend to be a little busier. As such, it might be crucial for people to make sure they have a plan in place that will allow them to save as much as possible even as their expenditures go up.
It's easy to get sucked into summer spending that can endanger savings plans that may have already been established, according to U.S. News and World Report. However, there are many easy ways to make sure spending doesn't get out of control during this time. One of the easiest ones is to set up a budget, and say that outlays won't exceed the limit set. This should be a reasonable level - especially if a vacation is involved - but not one that's going to break the bank.
What else can be done?
And to make room for maybe a little extra spending this summer, it might be wise to look at new ways to reduce expenses, the report said. Even being able to save $25 or $50 per week - not a lot of money - can go a long way toward allowing a bit more flexibility, but once the summer ends, sticking by the plans that freed up the extra cash could, in fact, add up to major additional savings.
In fact, consumers might also be wise to make sure they're doing as much as they and their families may want, but as affordably as possible, the report said. Researching things for families to do together that cost very little, or even might be free, could be just as fun as going to an amusement park or on another expensive outing.
What's a good strategy?
People who are worried about their ability to stick by a budget, though, may want to consider the benefits of switching away from using cards to make purchases, the report said. Studies show that people tend to be more frugal when they're paying for things with cash, because it actually feels more real when they're spending money.
Whatever plans are put in place to reduce costs this summer, the money that gets freed up can be put into savings, or toward reducing outstanding credit card or other loan balances. That, in turn, can serve to put people in better financial positions going forward, and also boost their credit scores.