Avoiding the financial summertime blues
Now that the summer is well upon us, you should take a hard look at your financial situation. It is easy to let finances pass you by over the summer because you want to spend time relaxing and enjoying your so-called “deadline-free” life. Truth be told, the summer is a great time to get your finances in order because you do have the freedom to take a good look at them and get everything squared away before your schedule becomes completely full again.
Avoid overspending
It can be hard to grasp the concept of “overspending” because school is expensive enough as it is, so it seems logical to enjoy some of your extra money on some much-needed “me” time. But summer activity costs can add up quickly, and you don’t want to start the school year off in the hole financially. Even when you have to spend money on the things you want to do this summer, look for ways to save. Sales, promo codes andcash back credit card deals are always plentiful during the warm months, so do a little research before you start spending.
Get your credit score in order
If you have no credit, or even bad-to-fair credit, the summer is a great time to take a look at your credit profile and get it squared away before school gets back in session. Your credit score takes time to build itself up, so take care of setting it up now, so that all semester long you will be working towards an excellent credit score. A student credit card is a great way to improve your credit, as long as you use it responsibly and pay your bill on time each month. TheCapital One Journey Student Credit Card is one of thebest student credit cards available and can give you all of the information and tools you need to get your personal credit score on the right track. Remember: It is not about how much money you spend on a credit card, but how good you are at repaying what you spend on time (and hopefully in full to avoid interest) to show that you are responsible with the money you borrow.
Set up an automatic savings plan
The key to being able to enjoy the money you earn is to save some for when you need it. Between school, your job, and friends and family, it is hard to remember to try and save some of the money that comes your way. By setting up an automatic savings plan you won’t have to worry about it. Things like your direct deposit from work make sending part of your paycheck to a savings account every week simple and easy. You can also set up automatic withdrawals from your checking account to be deposited into your savings account on a schedule that works for you. And, if you don’t already have a savings account, take a look at onlinehigh interest savings accounts. Many of these products come with little to no fees and offer interest rates upwards of 10-times what traditional banks offer.
Now that you know some of the simple and easy things you need to do to get your finances in order before the summer ends, take some time from your kicked-back, relaxing schedule to get everything set up. You will thank yourself when the next summer roles around as you should have more money to help you enjoy yourself, along with an excellent credit score to help you open up all the financial options you may need in the future.
Matthew Coan is the owner ofcasavvy.com, a Gainesville-based personal finance website.
