How To Cut Summer Spending And Stay On Budget

When summer comes to Canada, Canadians embrace it with enthusiasm. After spending months shoveling snow, scraping windshields, and struggling through snow-covered sidewalks, it’s natural for Canadians to want to get out of the house and treat themselves. Whether it’s trips to cottage country, vacations overseas, or just nights out in the city, as soon as it’s time to put the parka back in the closet, Canadians start spending.  When the days get longer, it can be a challenge to stay on budget!

As the days get longer, you’re more likely to go shopping after work or on the weekends and you’re more likely to eat out or stop on the patio for a drink with your friends or co-workers. Come the muggy dog-days of deep summer, you’re more likely to plan family weekends at the beach or start craving weekends at the cottage. All of that means creeping credit card bills and unexpected expenses as you indulge your summer desires.

Every summer, four in ten Canadians overspend during the summer, while nearly 30 percent overspend by $1,000 or more. Creeping credit card debt is an easy trap to fall into and it’s also one of the leading causes of insolvency alongside factors like job loss, personal injury, or divorce and separation. Overusing your credit card is one aspect of poor credit use that can lead to insolvency. Using your credit card is convenient and can have lower fees than Interac or cash, but when you use it to cover expenses you can’t afford or to cover essentials, you can accumulate debt you can’t afford to pay back.

When debt catches up with you, you may need finance and debt solutions to get out. These may even include consumer proposals in Canada. A consumer proposal in Canada is a chance to halt interest from growing on your debts and get relief from debt collectors. In addition, a consumer proposal in Canada involves renegotiating your debt with your unsecured creditors. To qualify, you must owe at least $1,000 and be insolvent. Book a consultation with a bankruptcy trustee in Canada to find out if you’re insolvent. Bankruptcy trustees like David Sklar& Associates offer initial consultations for free.

If you avoid overspending, you may be able to avoid insolvency. When you have more savings, you’re better prepared to handle loss of income and put off going into debt in an emergency. This summer, here’s how you can keep spending under control and stay on budget.

Track Everything –

Use an app or a good old-fashioned notebook to track all your expenses, both on card and in cash.

Set a Budget –

Be lenient with yourself. Summer is a great time to enjoy yourself and account for the fact that you’re going to want to go out. But once you’ve found a number you’re comfortable with, stick to it. Break it down week by week.

Identify Your Financial Goals –

One of the main objectives of credit counselling from bankruptcy trustees like David Sklar & Associates is identifying your financial goals. Is it saving for a house, a condo, a car, a vacation, retirement? When you know why you’re cutting back your spending, you feel good about sticking to your budget.

You can enjoy your summer and still stay ahead financially. Savings and responsible spending are the most effective ways to protect yourself from insolvency in the case of an emergency.