It’s summer! It’s now time to sit back and relax. Sorry, think again.
The summer is not the time to relax. It is your opportunity to prepare for three important events that are happening within the next few months.
The last day of school starts the anticipation of fun in the sun. The kids are anticipating a summer family get away. If you are truly mindful of your finances, you included this event in your budget earlier in the year. If you did not already budget for this summer vacation, now is the time to do so. You still have a few months to prepare.
Researching your family trip is fun but don’t let it take up too much of your time. After you determine the date and cost of the family get away, determine how many pay periods there are left before the anticipated date. Divide the cost of the vacation by the number of remaining pay periods to determine how much needs to be saved each pay period to pay for the anticipated get away. You will find that your get away will be more enjoyable if the cost is taken care of in advance versus charging it on a credit card and paying for it months after the excitement has passed.
This is an event that is not enjoyed by the entire family. The kids enjoy going from store to store and getting new clothes and new sneakers. The parents, on the other hand, are dreading the cost of this adventure. We all know how much one pair of sneakers cost and the kids are not satisfied with just one pair.
Again, if you are mindful with your finances, you already included this in your budget a few months ago. If this hasn’t been added to your budget, now is the time to get started. Determine how much you project spending on school clothes and divide by the number of remaining pay periods until school starts. This amount is what you need to set aside each pay period so that you are prepared for this event.
The anticipation of this event is reversed. It is dreaded by the kids but so anticipated by the parents as it signifies the return of school days. This event comes as no surprise. You know it happens at the same time every year.
Guess what is going to be said next? Yes, if you are mindful with your finances, you already included this in your budget. If you have not, there are a few months left to get prepared. Although this amount may vary based on the raising grade level, you should have an idea of how much the school supplies will cost. Use the same calculation as above to determine how much you need to set aside each pay period to cover this event.
These three important events happen every year. If you do not properly prepare for these events, they can sneak up on you and may derail your attention from your normal monthly obligations. This starts or continues the cycle of being behind on bills and being charged late payments, which negatively affect your credit score. So, be mindful of your finances and create a budget that will include these anticipated events early enough in the year to prevent last minute panic or interruption to your normal monthly obligations.
Increasing Financial Awareness and Building Financial Stability