5 Tips To Plan Your Budget For The Summer Holidays

Summer plans are great fun, but you’ll only enjoy them if you properly prepare for any associated expenses. As the warmer months approach, use these five tips to plan your budget for the summer:

1. File Your Taxes on Time

File taxes before you begin making any summer plans. Taxes not only should be filed on time to avoid any potential penalties, but they also can substantially change your immediate cash position.

Depending on your situation, you may owe taxes or receive a refund. The former can be a large expense that should be budgeted for before you plan any summer activities. The latter could provide you with a small windfall that can be spent on vacations or other plans.

Either way, you won’t definitively know how taxes will impact your financial situation right now until you file. File, and then make plans accordingly.

2. Adjust Your Monthly Budget

Your monthly budget will change as the weather warms and school ends (if you have kids). For example, the following could change your regular expenses:

  • More daylight means that the lights don’t have to be on as much

  • Warmer temperatures eliminate the need to pay for heating

  • School vacation might necessitate paying for childcare

  • Kids may want to attend summer camps that aren’t free

You don’t have to account for the one-time major summer expenses, such as a vacation, in your monthly budget, but you should include any ongoing costs. Of course, you ought to start a budget if you don’t already have one.

3. Prioritize the Major Expenses

With your taxes and monthly budget in order, you can see what’s available for major summer plans. Plans might include a vacation, a large holiday party, or even something as big as a home purchase.

Prioritize one-time major expenses, and allocate your available extra funds accordingly. Make sure you accurately estimate costs and judiciously allocate funds. This will ensure you can do as much as possible, and enjoy the activities that you’re most looking forward to.

4. Leave Some Flexibility

While you should carefully plan how each dollar will be spent over the summer, don’t plan on spending every dollar. Leave yourself a cushion that can be used as an emergency and/or miscellaneous fund.

This money could be used for any issues that arise during the summer. It’s available if you are stranded while traveling and need a hotel room, have a boat breakdown that you want promptly repaired, or face an unexpected expense when buying a house.’

You should always have an emergency fund, but it’s especially important when you’re going on vacation or preparing for major purchases.

5. Improve Your Credit

Even while enjoying the summer months, you can still improve your credit. You might do this by paying down debt, catching up on bills, or using a credit repair service.

To learn how credit repair could help improve your credit situation, contact us at Key Credit Repair.

You can find us at (617) 265-7900; toll free at (877) 842-5215, or visit our website: keycreditrepair.com