Cool down with a few summer-saving tips to help you budget summer expenses while having fun in the sun

Making the most out of your summer doesn’t need to require the most out of your finances. Whether you’re planning a vacation, attending an amusement park, tackling household DIY projects, or catching up on much-needed R&R, regardless of how you’re spending this season, you shouldn’t have to break the bank for summer fun.

Summertime can be expensive, but sticking to a budget can help you not sweat the thought of overspending or going broke. Creating and updating a budget specific to your needs can ensure you meet your financial goals no matter the season. While there are several budgeting styles you can use such as the Balanced Budget or Reverse Budgeting approaches*, a simple budget approach known as the 50/30/20 rule can allow you to build a healthier budget while keeping your cool.

The 50/30/20 rule divides your take-home pay essentially into three categories with each number representing a percentage of your income that can be spent on certain categories. It suggests that you put up to 50% of your after-tax income toward things you need, 30% toward things you want and 20% toward savings.

50% = Essentials

Must haves or can’t live without items and expenses. These include housing, transportation, utilities, food and even minimum debt payments.

30% = Wants

These are things you can do without such as shopping, dining out and entertainment.

20% = Financial goals (Savings)

Money set aside for saving for future goals and financial freedom, which may involve an emergency fund, retirement expenses and debt payments above minimums.

The 50/30/20 rule is a simple start to budget better, minimize expenses and build savings. Consider the 50/30/20 method as a possibility to build your budget to support your short-term and long-term priorities.

Establishing a routine to manage your budget and savings takes practice. But if you find you don’t have the time, many banking institutions offer promotions for setting up automatic transfers from your checking to a savings account, which makes managing your finances easier. Not only does an automatic account transfer save you time, but special incentives may provide you with extra money. Researching available options and speaking with a banking representative or financial advisor may help you decide on a course of action best for you and your situation.

Register for an INPRS webinar or workshop with our team of retirement service consultants, at bit.ly/BookWithINPRS. Remember, keeping a cool, calm head will save you from turning red from financial frustrations and help you beat the heat, so you can stay chill all summer long.

^{*Information on alternative budgeting styles; Balanced Budget and Reverse Budgeting is available in INPRS’s Financial Wellness Guide. Consult with your financial advisor regarding this and other possible appropriate budgeting strategies and how each may fit your circumstances.}