up your savings after summer splurges |
long weekends away, sunny restaurant patios and summer festivals, it can be tempting
to break good savings habits and splurge during summer months.
fact, a recent poll by TD Canada Trust found three-quarters of Canadians admit
they are more relaxed with their spending and saving habits at this time of year
and many let their budgeting, saving and bill payments slip by the wayside as
they enjoy the warm weather.
Chun, a senior vice president at TD Canada Trust, offers his top tips to avoid
the summer splurge:
Don't get carried away with spending - Invite friends over for a backyard barbecue
instead of frequenting restaurant patios regularly after work. It's tempting to
splurge on seasonal accessories, but remember you may only get another few months
out of a new pair of sandals or summer dress before the cooler weather starts
Automate your financial responsibilities - Set up pre-authorized transfers to
your regular bills and minimum credit card repayments. That way you don't have
to worry about interest and fees incurred on forgotten bills while you're out
enjoying the warm weather.
Get your debts under control-Review your unpaid bills and debt obligations. If
you're strapped for cash and can't make all your payments, then pay at least the
minimum required. High interest debts like credit cards should take priority.
Write a budget and stick to it-Calculate how much money you earn each month then
subtract your monthly expenses, like rent and food, to understand how much you
have left for savings. If you have a negative balance or less than 10% of your
pre-tax income to save, you need to rethink your spending.
Start planning for next summer now-If you struggle with finances during the summer,
start saving now so that you're not in the same situation next year. Speak to
your bank about setting up a pre-authorized transfer of a portion of your pay
cheque into a high interest savings account to maximize your savings.