It's about that time when friends and coworkers begin asking, "Any plans for the summer?"
Maybe you're hoping to escape to the mountains or relax at the beach. Either way, we know that summer vacations can easily become a big expense - but they don't have to be. If you have a budget that you've been following all year long, vacation costs don't need to come as a surprise. In fact, you can begin saving for them months ahead of time.
So before you make your summer plans, check out these tips on How to Build a Healthy Budget:
Choose your timeline. People often create a monthly or bimonthly budget. Either way, be sure to choose a plan that works best for you and/or your family.
Calculate your total income. This includes you and/or your spouse's income, as well as any extra income you may receive on a regular basis.
Calculate how much you want to give. Whether you give to a church or a charity, choose how much and how regularly you plan to donate money.
Calculate how much you want to save. Make a plan to put a certain amount of money toward your savings each month. Dave Ramsey recommends having 3-6 months worth of expenses saved up as an emergency fund.
Calculate your priority expenses. These expenses are non-negotiables and include items like debt, mortgage, utilities, insurance, etc.
Calculate your remaining expenses. These expenses are part of your lifestyle, but can be raised or lowered depending on your discretion. This includes items like groceries, gas, entertainment, clothing, toiletries, media subscriptions, etc.
Plan for special events. This is where things like summer vacations come into play! If you know that you have a special event or purchase that is beyond your regular budget, make plans to save a certain amount for as many weeks/months as you need.
Need help creating a budget or talking through your finances? Schedule a free consultation with us today.