Financially Naked It's Expensive Outside with Sara W & Yenny
This episode of Financially Naked: Stories from The Financial Gym is about how to get the most from summer without blowing your budget. After two years of covid life, there is a lot of travel, weddings, and other events to plan for. We all want to go out (safely) when we can, but with inflation, it's expensive outside! Sara W and Yenny, two of our Certified Financial Trainers are here to talk about how we can plan to live our best lives this summer while staying financially healthy.
Podcast Notes
Start with the basics:
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The first step of knowing how much money you're able to spend this summer is knowing where you are financially right now. From there you can make a plan to budget for the things you want to do! It's not easy to make a plan if you're not sure how much money you're working with.
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Sara tells us that we can have anything we want, but not everything. Depending on what you want to do this summer, trade offs might have to be made.
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What things are you excited to do and spend money on? Once you know that, you can really focus and start planning for those things.
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When making your budget, ensure there is a reasonable allowance for variable expenses and the fun things you want to do!
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Think about where you can adjust spending, or how to increase your income.
How to prepare for big-ticket items this summer:
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With things opening up, travel is top of mind for people this summer and many of the weddings planned for the last few years are happening now.
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The best way to start saving for these expenses is by setting up a sinking fund. This is a savings account, separate from your emergency fund, where you set aside money for your goals or fun plans.
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Check on any travel credits from 2020 and make sure to redeem those before they expire.
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If you want more specific tips about traveling on a budget, check out these two episodes of Financially Naked: Travel Hacking & Traveling on a Budget
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When thinking about weddings, in addition to travel and accommodations, make sure to plan for the other expenses such as the gift or going out with friends when you're all together.
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If you're attending a few weddings this summer, use the same outfit styled different ways instead of purchasing a whole new outfit for each one.
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People are more understanding now than ever, if you can't afford a big gift, that's okay! Your friends and family are happy to see you and your presence is a great present.
Tips for managing everyday expenses while enjoying the summer:
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This is where the trade-offs start to come in. Go through the list of fixed expenses and scrutinize every charge. Are there things you can pause like gym memberships or streaming subscriptions that will get less use while you spend time outside?
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Can you call and negotiate any insurance or interest rates? It's good to shop around and see what options are out there.
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Eliminate unnecessary fees where possible, such as late fees or overdraft charges.
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Are there convenience fees that can be cut? Think about picking up your dinner instead of ordering delivery. This is a great option when the weather is nice, will save you on delivery charges, and directly supports the restaurant.
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Use coupon codes and rewards as much as you can. Some common examples are browser extensions like Honey or a rewards system like Rakuten.
When it feels like the spending is "out of control"
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Focus on a few categories. The first step is being aware of which ones impact your budget the most. Drill down on that category and see where the opportunities are.
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Pay yourself first by making savings automatic. This ensures your savings goals are being met, and you can feel great about the money left over to spend on the variables.
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Be intentional with your money. We work hard to make money, so it's important to think about that when we're spending it.
Get creative with your plans:
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Make a summer bucket list of events and places you want to go.
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Think about all of the great ways there are to have fun for cheap or free. There are so many options out there in the summer.
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Check out your city's calendar of events and see what is being offered. There are always events like parades, fairs, or fireworks shows.
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Going to the library is always free, and there are usually special events throughout the summer.
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Spend time outdoors while the weather is nice. Take walks around the neighborhood and find parks in your neighborhood.
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Picnics are a great, affordable, cheap outdoor option.
FOMO is real! How do you plan for everything you want to do and see everyone you want to see while managing the budget?
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Practice boundaries and communication skills with yourself and others. If you're unable to afford certain activities with your group, suggest something else.
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If you've already assessed the budget and cut in all of the areas you can, what are the other options? Is it time to talk to management about a raise, or if you're a business owner, raising your prices?
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Take a look at your own life, and seek out the positive changes that can be made.
Random Three Questions
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What is your favorite summer activity?
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What is your favorite thing to do for free?
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What is your favorite summer treat?
Meet The Trainers