I went into this summer holiday determined to stick to my budget. I had every intention of keeping my spending in check, but somehow I still ended up spending way more money than I wanted to. I’m not sure if it’s because I have zero self-control or if everything is just ridiculously expensive these days, but either way, my wallet feels emptier and my credit card balance is higher than I’d like.
Summer is such a fun time of the year, but it’s way too easy to overspend and get off track with your financial goals between beach trips, outdoor dining, and last-minute weekend getaways. Trust me, I’m a perfect example of this. Even if you carefully laid out a summer spending plan ahead of time, unexpected costs add up quickly. If you’re with me and are feeling a bit panicky about it, know this: It’s never too late to revisit your overall financial plans and recover from the season. Here’s how we can recover
Return to your regular budget
Get back to your regular budget and everyday spending habits as soon as possible. It can feel tempting to throw in the towel after overspending and delay tackling some of the habits that snuck in over the summer. But it’s a similar mentality to what the best nutritionists share about splurging: Don’t have a “diet starts on Monday” mentality. There is no better time than now to make changes for the better.
Dining out and groceries are some of the sneaky budget categories that get out of whack this time of year, so look there first for places to reset. If that means your usual iced coffee budget is $2, wave goodbye to your specialty $5 cold brew for a while, or stop buying coffee out altogether. Similarly, it’s time to wean off high-end grocery items like that fancy artisanal cheese you’ve been hyper-focused on over the last few weeks. This doesn’t mean you have to avoid the occasional treat forever, but for now, cut back anywhere you see extra spending.
Make a concrete plan for recovering your accounts
Open up all of your summer bills and take a close look at the damage. As someone with an anxious-avoidant money attachment style, I know this isn’t easy to do. However, it’s the only way to know how much and how fast you need to recover. In the summer rush, it’s easy to forget expenses that happened earlier in the season, so you want to be sure you have a complete picture of what needs to be taken care of.
Be very detailed, and challenge yourself to define exactly what you can pay off and when. You will be much more likely to reach your payoff if you set concrete numbers and deadlines. For example, you might decide to take 10 percent of your “fun money” from your next four paychecks and allocate it to your debt instead. In my experience, the easiest way to hold yourself accountable for this is by automating your accounts to move the money for you. You can do this by adjusting your direct deposit, or you can enlist the help of a budgeting app that can pull your money into various saving categories.
“Vacations aren’t just expenses—they’re investments in memories. But balancing joy and budget takes real intention”
Make a plan to increase your revenue
Budget cuts can only go so far. At some point, a more fulfilling option can be finding ways to add to your income. This can look several different ways, and the new season is a perfect time to think about all of these options. Have you been considering a side hustle? It’s time to act on your dream or bulk up your client prospecting to bring in a little more cash. Could your closet use a clean-out? Find the best ways to sell some of your old clothes, which likely got bumped out of rotation by a few summer purchases anyway! Not only will you bring in some money, but you’ll also start the season feeling a little lighter.
Alternatively, what can you cut back on that will keep more money in your pocket? For example, I am canceling some of my streaming subscriptions for the new season—I literally never use 3/5 of the ones I pay for. And last but not least, the summer often comes with bonuses or a raise (hopefully!). Strategize how you will allocate the extra income, or practice your negotiating skills to earn a salary increase. If this isn’t your reality this year, make a plan now for how you can best allocate your tax return money.
Decide what changes you need to make
Throughout this process, you might have noticed some line items that didn’t necessarily need to be as high or on your statement at all. If you’re like me, you’re cringing at your expensive summer manicure and the new beach dress you bought that you’ll never wear again. Maybe you even accidentally doubled the amount of money you planned on spending on your friends or forgot to budget for summer get-together expenses altogether. BBQs, pool parties, and outdoor classes are all categories I regularly forget to budget for, but they can make up a big portion of expenses! Further, I used to not have a separate line item for sunscreen and picnic supplies, but after a few extra runs, those became too much to leave out of the summer budget as well.
Decide what needs to be different for next year and document your budget changes in a notebook or on your phone (I also like to email myself!). This way, you’ll have your plans handy when the summer season rolls around again. Do you need to start saving mid-year or adjust savings rates? Schedule an email or set a calendar reminder for then. Moving forward, our goal is to be proactive instead of reactive to avoid overspending.
Give yourself a break
Feeling guilty about overspending is normal, but dwelling on it isn’t going to help you! At this point, what’s spent is spent (unless you’ve still got some returns!). Costs during this time of year usually result in memories and traditions and in the pursuit of celebrating with your loved ones. Instead of feeling guilty about your choices to go off budget, think about how much you appreciated the summer experiences and memories you had.
Further, know that someone in your circle probably experienced some overspending, budget-busting moments as well, meaning it can be even more appreciated if you go the extra mile to send a thank you for any gifts, experiences, or hosted events you enjoyed from someone else.
