Check these five financial to-dos off your list for summer

Usually, social spending pressures are what break the bank during the summer months. But, high inflation costs and a shaky economy are likely to limit patio visits, festivals and general summer spending. So, why not use this time to “lay low” financially, and still have safe affordable fun.

Here is a five-point checklist to get yourself financially ready for the summer.

#1 Assess your current money situation

It’s hard to do any form of proactive financial planning when you have no clue as to your starting point. Take a pulse on your credit score, income relative to expenses, what’s working and not working with your budget, and start measuring the progress you’re making on your debts.

If your credit score is over 650, it’s considered “good.” And, you can make it even better this summer by consistently paying your bills on time (and in full if you can), not using up too much of your available credit limit, and holding off on taking on more debt.

Your income and expenses should be rolling into a budgeting template you commit to using regularly. The goal is to put every single dollar to work by assigning it a task such as groceries, investments, line of credit interest, short-term savings, Netflix, and so on. If you’ve got money left over, that’s actually a sign that you should be planning your budget more efficiently — like paying more toward your consumer debt.

#2 Plan for your favourite summer activities

Whether you’re going camping, road tripping or gardening in your yard, you’ll want to factor in these costs, proactively. Take an afternoon to map out your schedule of summer fun. Now, work this back into your budget, which means that you’ll need to extend your budget template out until September. Timing really matters, so spread out the fun, which will ease the pressure on your cash flow.

If spending money on fun is making you a bit anxious because your finances are tight, think about smaller expenditures, like at the $15 to $25 level, that will still bring you joy. This doesn’t need to be expensive to put a smile on your face; think ice cream parlours and beach picnics.

#3 Make a plan to save up for the expenses you don’t want to pay for this summer, but you have to

This could be essential deck, roof, or car repairs. Or, replacing your septic system. Perhaps you’re heading back to work after being on leave, which means shelling out money for safe child care. I know this category is absolutely NO FUN to spend money on, but if the need is essential, you’ll want to plan for it in advance.

A quick way to do this is to tally up all of these expenses, then start saving a specific amount each paycheque towards them in a big-ticket savings account. For example, if your essentials total $1,000 this summer and between you and your partner you’re going to be getting 10 paycheques between now and September, that means setting aside $100 each paycheque. Then, space your spending out according to when you’ll have the savings available.

This technique will help you avoid unnecessary debts, and can be used throughout the year, and not just for the summer months.

#4 Do maintenance on what you have versus buying something new

Get out the scrub brush, air pump, bike grease, and start fixing up what can be fixed. Whether it’s your squeaky bicycle, flower bed or eavestroughs, do some regular maintenance on what you own before replacing it. If a part or two seems to be broken, buy a replacement part, or better yet, apply for the warranty replacement if you have that option. Watch YouTube videos on how to repair whatever you’re working on. It’s amazing what you can bring back to life, for a little bit of elbow grease. This fourth point on the checklist also applies to all the nice clothes in your closet you haven’t worn for a while, that could use some spot cleaning versus paying for dry cleaning.

#5 Strategize on how you could clear a small pesky debt or two before the end of the summer

Sure, there are your regular payments, and that’s obviously critical for you to keep up with, but what other creative ideas can you come up with to pay off your balances? My suggestions are to purge what you no longer need and sell those valuable items on Facebook Marketplace or Kijiji, take on a few extra shifts, go 14 days without spending on anything non-essential, renegotiate the interest on your debts, cut back on one takeout order per month, and put your tax return onto your debt.

If you’re debt free, congratulations! Why not use this fifth point toward building up your savings instead.

If you like this checklist, and want to do more for your financial health this summer, your next step is to set one or two financial goals you’d like to achieve by the end of September. Make your goals visible in your home. Then, have fun measuring your progress.

This article was originally published in The Star. Lesley-Anne Scorgie is a Toronto-based personal finance columnist and a freelance contributing columnist for the Star.