Summer is a time to cut loose and have fun. But, if you’re not careful, that fun can lead to overspending, failing to keep tabs on your finances and making money mistakes due to distractions.
You certainly don’t want to be paying for those mistakes the rest of the year. So, to maintain your financial well-being while enjoying all that summer has to offer, avoid making these money mistakes in the coming months.
1. Overspending on Summer Fun Rather Than Saving
There are plenty of temptations to spend in the summer — on travel, concerts, cocktails by the pool and nights on the town.
“For whatever reason, people can’t prevent themselves from spending out of their limits during the summer,” said Michael Cirelli, a financial advisor with SAI Financial Services in Illinois. And they do so at the expense of their savings.
However, you shouldn’t stop contributing to your retirement account to fund summer fun. To avoid the temptation to overspend, Cirelli recommends having contributions to retirement accounts automatically deducted from your paycheck or bank account. Then you can only spend what’s left after funding your savings.