If we’re all being honest, when we think of summer, we see wave of expenses coming our way. It could look something like swim classes, vacations, summer camps, weekend trips to the beach or lake, dog/cat boarding, gas for travel, and babysitters.
And a recent conversation with my clients, Scott (40) and Julie (38) who have 2 little girls below the age of 8, we discussed how to mentally manage their finances for the summer. In the busiest season of their lives, raising too young little girls, it can feel overwhelming to manage the logistics and finances of a family that is busy enjoying summer activities.
I recommended to them to set up a separate Summers Savings account in which they fund monthly for the summertime expenses. Instead of getting to summer and spending out of your monthly cashflow, in which usually stresses most people out. I recommend my clients spend from their Summer Savings account which they have funded over the whole year.
The Summer Savings account funding over a whole year for Scott and Julie looked like the following:
First and foremost, there has to be enough excess cashflow monthly throughout the year to fund these types of accounts, they help with not having high expenses in the summer, crushing cashflow.
Maintaining the ability to spend money freely helps us be mentally free of stress as well as built-in financial freedom to enjoy the spending and summer!
Take bite sizes of your finances, you can accomplish much with a little forward thinking. If you, or someone you know this summer is looking to make sure they’re planning, disciplined with investments, and wanting guidance on how to best handle their finances, I would love to speak with you or them.
- Peyton
P.S. - Here are a few things I am reading/watching/listening to: