Summer is here, and with it comes the promise of warm weather, sunny days, and endless opportunities for adventure. Unfortunately, summertime can also bring a hefty price tag. According to PR Newswire, the average American spent over $2,830 on vacation during the 2023 summer months. That’s a lot of money to spend in just a few months on top of daily expenses. To help you save money during the summer, I put together this list of 24 best summer savings tips to stay on budget without compromising on fun activities.
Saving money during the summer can be quite challenging if you don’t know where to begin or when you don’t know the right summer saving strategies. Over the years, I used these 24 budget-friendly ways to save money during the summer without sacrificing the fun and excitement of the season. While you might not need every saving strategy included in this list, the list contains a lot of summer-saving tips to manage your finances and save money this upcoming summer.
Without further ado, here are the best 24 ways to budget and save money during the summer.
1. Set specific financial goals
Setting up financial goals is a great savings strategy many financial savvies use to save money during the summer. If you struggle with summer savings, start with savings goals as they help you track your progress and stay on the right track. For example, if you want to save $5,000 for a car down payment, you can easily set your savings rate to $1,000/mo and track your savings progress monthly. With this savings rate, it will take you 5 months to save $5,000.
Without savings goals, you will not know how you are doing which will also prevent you from saving enough money during the summer. Whether you want to save money for a car down payment, college education, donation, vacation, or a house down payment, write down these summer saving goals and use them as a guide to save money.
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2. Pay yourself first
The term, “pay yourself first” usually confuses many people. Many people think paying themselves first means buying the most expensive things they can find to compensate themselves. Some say, ” I deserve this car or house because I worked hard for the money”. What they don’t realize is that buying expensive stuff, especially on credit costs them more interest money which increases their monthly payments. Eventually, they end up living paycheck to paycheck or going bankrupt for worse.
I agree that paying yourself first is the best way to save money during the summer or all year round.
So, how does paying yourself first actually work?
Paying yourself first means deciding how much money you want to keep for yourself before you spend a penny. This savings strategy aligns with retirement savings, investment goals, and other financial goals you might have. Funding these goals first allows you to keep most of your earnings which is a major step to financial stability.
The best way to pay yourself first and save money during the summer is to use the, “save first and spend later” strategy. While this term has many meanings depending on who you ask, saving first and spending later means putting money in different accounts before you do anything with the money and living off the remaining balance.
For example, you can max out your retirement savings accounts such as 401(k) plans and individual retirement accounts(IRAs) before you receive your paycheck. Then, use the remaining balance to cover your living expenses. Or if you want to save $10,000 by the end of the summer, decide how much to put in your savings account first and align your living conditions with the remaining balance.
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3. Reduce your electricity consumption
Suppose you live in hot summer areas such as California, Arizona, Louisiana, Mississippi, Nevada, or Hawaii. In this case, your electric bill is usually double or triple compared to how much you spend in the winter. Typically, it costs more money to cool down houses in the summer which comes with a price tag. Unless you take action, your summer utility bill will be unaffordable.
To increase your summer savings, lower your electricity consumption. Some strategies to lower electricity consumption and save money during the summer include using natural lights, unplugging devices not in use, and using energy-saving appliances, etc.
Read more: How to spend less on electricity?
4. Cook at home
Do you want to save more money in the summer? Cooking at home can be significantly cheaper than dining out. Normally, food takes up a big percentage of your monthly expenses especially if you eat out very often. If you want to budget and save money during the summer, prepping meals at home is the only way to achieve this savings goal. If you have a busy schedule, do weekly meal preps on Sundays.
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5. Sell unused items
Saving money during the summer sometimes requires earning extra cash to offset high expenses such as electric expenses. While you can get a part-time job to make extra cash, a smart way to make money and increase your summer savings is by selling items you no longer use online.
Start by decluttering your home and selling items you don’t need online. For example, you can sell unused gift cards online, flip used clothes, and sell old electronics to make extra cash.
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6. Plan your grocery shopping
Summer is the best time to visit loved ones, celebrate birthdays, and do all the get-together events you postponed over the winter. Hosting these activities also means your grocery bill will be expensive. For this reason, cutting back on grocery shopping is a great way to save money during the summer.
An effective way to save money on grocery shopping is to plan for your shopping, shop with a list, avoid impulse shopping, and never buy brand-name products. That is right. Before you head to the store, make a list of the things you need and only buy what is one list.
7. Limit summer entertainment expenses
Another way to budget and save money in the summer is to lower your entertainment expenses. While summertime is a great season to have fun and catch up with all the great things you missed in the winter, being mindful of your fun events expenses should also be a priority.
Summer entertainment comes in many forms and types. Some events can be costly while others are affordable. To reduce summer entertainment expenses, target specific events and choose lower-cost or free leisure activities. You can also lower your monthly streaming and other subscription costs by canceling some services to save more money. Another great way to boost your summer savings is to have everyone pinche in instead of covering everything by yourself.
For example, if you are having a summer food cookout, ask everyone to bring something. Some people can bring drinks, others food, and silverware.
8. Carpool or use public transit
Transportation is one of the biggest summer expenses. But, if you take advantage of summer wealth, you can cut down your summer transportation cost by as much as 100 percent. For example, you can use public transportation or bike to and from work to save money on gas, car insurance, and related car services. If you don’t like biking or using public transportation, try sharing rides or walking.
9. Save money on vacations
If you are planning to travel during the summer, you must start thinking about saving money as much as the fun you will have. Most people travel during the summer which increases the demand for travel-related services. For example, airfares are expensive during the summer, car rentals cost more money, hotels charge premiums, and food costs a fortune.
According to NerdWallet annual summer travel survey, more than 45% of Americans will take a trip that requires a flight or a hotel stay. Additionally, 1 in 5 summer travelers will use a credit card to pay for all travel expenses while 83% of travelers will cover a portion of the cost with credit. From these statistics, you can easily get into unnecessary debt if you don’t stick to summer savings strategies.
The only way to save money in the summer on your travels is to make a travel budget. Know how much you will spend for the entire trip and budget every little expense. Start by planning your vacation well in advance to get the best rates, or opt for a staycation. You can also drive to your destination instead of flying if it is cost-effective. Staying in an Airbnb might also be cheaper than staying in a hotel.
10. Automate your savings
One of the most effective ways to save money during the summer is automatic saving. Deciding how much you want to save and which account the money will go to helps you save first and spend later which is an effective saving strategy for the rich.
For example, if you have retirement savings accounts such as 401(k) plan and IRA, have the money transferred to these accounts automatically from your bank account or employer. By the time you receive the money in your checking account, your savings rate will have been met. This is what saving first and spending later means.
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11. Utilize discounts and coupons
Another popular summer saving tip is taking advantage of coupons and discounts. To increase sales during the summer, many companies offer discounts on summer products to take advantage of the inflow of people, especially tourists. If you want to save money during the summer, take advantage of coupons and summer discounts. You can also use cash-back apps for your daily shopping. Whether you shop online or in-store, any discount you get will help you save money during the summer.
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12. Cut back on subscription services
Do you have a lot of paid subscriptions? If so, canceling some of them will be a great way to save money in the summer. For example, if you have NetFlix, Hulu, Disney, HBO, etc., cancel some of these subscriptions and replace them with free outdoor summer activities. For example, free summer events you can attend include cooking out events, seminars, volunteering activities, etc.
13. Participate in free activities
Summertime is the right season for countless activities and free events. Not only do many concerts happen in the summer, but other activities such as the summer fair, parties, festivals, etc all happen in the summer.
To budget properly and save money during the summer, focus on attending free summer events. Search in your area for free summer activities and choose the ones that align with your needs. For example, check if your library has summer kids’ fun activities instead of paying for pricey ones. Some schools also organize free summer events for their students to keep everyone involved and entertained.
Other places to check for free summer events to save money include but are not limited to recreation centers and parks, and the YMCA.
14. Avoid bad debt
One of the biggest reasons people overspend during the summer is borrowing more than they can afford. For example, summertime is when all fun activities take place. Many people also visit expensive themes such as Disneyworld during the summer where tickets cost as much as $150 per person daily.
If you have a big family, it can cost you more than $15,000 to finance the whole trip which is a lot of money to come by for the average American. In this case, taking out a personal loan might be your only option.
To save money during the summer, avoid taking out unnecessary loans. The thing about saving money is that if you have to borrow to get something, you cannot afford it. Try to attend free events or simply buy tickets for cheaper and local events to save money in the summer.
15. Plant a garden
Do you want to eat healthy food and save money during the summer at the same time? If so, growing your food is the best way to boost your summer savings. Even if you don’t have a large land, you can still grow vegetables, greens, and herbs in pots. Growing most of your food will help you lower your grocery bill.
16. Budget your childcare and pet-sitting services
One of the biggest expenses every parent faces is childcare services. Babysitting costs thousands of solar in some locations which might stretch your summer budget.
To save money during the summer on childcare services and pet sitting, try to work with other parents or pet owners and help each other. For example, you can watch someone’s kids for a week or two and they can do the same for you. Another popular option is to split the cost of a nanny.
Instead of having your nanny, you partner with your neighbors and family members to hire one nanny for all your kids. Splitting the cost of a nanny is cheaper than taking your kids to a babysitting center or covering the full cost of a nanny by yourself.
You can also lower the cost of childcare by relying on free events in your area. Research and participate in free events in your local libraries, recreation centers, museums, and parks. If you cannot find free events, at least find cheap ones.
To save money in the summer on pet care, work with a family member or send them to free pet events. You can also hire an in-house pet sitter and negotiate the price. For example, if you hire a college student and give them free internet and access to food, they might be willing to pet-sit your animals at a lower cost.
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17. Budget for summer events
Tracking your expenses and budgeting for summer events is an effective way to save money. Summer activities are usually expensive and most of them can lead to impulse shopping. For example, if you attend a summer fair, you can easily spend hundreds of dollars on random things you don’t even need.
That is why budgeting for summer events is a great strategy to save money during the summer. Before the summer starts, write down how much you will be spending on summer-related events. After creating the budget, attend summer events that fall into your budget. Searching for free summer events can also help you lower your summer spending.
18. Use a budgeting app
If you struggle to make a budget or are unaware of different ways to save money, try a budgeting app. Most apps do all the hard work for you from tracking your expenses, giving you a visualization of your expenses, to showing you where you are spending more than you are supposed to.
Just as businesses use software to manage finances, you can use a budgeting app to track your spending and savings. Some of the best budgeting and summer saving apps include but are not limited to YNAB, Mint, EveryDollar, Goodbudget, and Honeydue.
19. Minimize the use of air conditioning
Air conditioning expenses account for about 60% of your summer utility cost due to the constant cooling of the house or apartment. To minimize your energy cost and save money during the summer, use fans, shade, and cross-ventilation to keep your home cool.
20. Do a ‘no-spend’ challenge
Saving money is usually challenging for people who are not used to saving. If you are such a person, you might need to pick a money-saving challenge to boost your summer savings. Saving challenges force you to save even if you don’t feel like it.
If you are in college, you might need to use summer saving strategies than anybody else. This is because college students are usually broke and your finances might be tighter if you went somewhere for spring break. To help save money in the summer as a college student, try a “no-spend challenge”. With a no-spend challenge, you designate a week or a month where you only spend on necessities. For example, you can have a two-month challenge for not buying alcohol, eating out, or going to the movies.
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21. Get healthcare services from in-network providers
There is no greater way to budget and save money during the summer than getting all your medical services from an in-network provider. If you have a planned medical expense such as surgery, try to get all the services from an in-network provider. Getting these services out of your network costs you money that could have been saved. Even if you are getting subscriptions, always pick an in-network provider.
Another great way to save money in the summer on health care is to use your flexible spending account(FSA). If you have an FSA through work, you might need to use that money before the end of the year as you could forfeit them. Always use your FSA funds for qualified medical and dental expenses to boost your summer savings.
Besides having an FSA, use your Health Savings Account(HSA) on qualified healthcare services to save money during the summer. To qualify for an HSA, you must be enrolled in a High Deductible Health Plan(HDHP). If you have been saving cash in your HSA account, using this account to pay for qualified healthcare services will be a great summer saving strategy.
22. Buy in bulk
Summer shopping can cost you a lot of money if you don’t have a budget. For example, some stores increase prices due to high demand for hot summer items such as juices, drinks, hot dogs, sausages, ice cream, and veggies. To boost your summer savings, buy items in bulk as stores sell more items at a discount to increase sales.
If the store you go to does not have bulk sales, subscribe to a membership-based store. Good places to buy products in bulk are Sam’s Club and Costco. Some of the best items to purchase in bulk include non-perishable items or regular items you plan to consume fast at parties and gatherings.
23. DIY projects
Summer projects usually cost a lot of money. Most people start projects in the summer to take advantage of good weather. But, doing all the projects at once can exhaust your finances and push you out of budget. A great way to do all your summer projects and save money is to DIY your projects.
Any project you complete will save you money on labor costs. That is right. The best way to save money during the summer on different projects is to opt for do-it-yourself projects instead of buying new items or hiring professionals. Additionally, DYIng your projects is a fun way to pass time during the summer.
Do you have a kitchen renovation project? Take the time and do it yourself. It might take longer, but, you will feel good about yourself when it is done.
24. Use cash instead of credit
If you struggle with overspending on your credit cards, start using cash instead. Usually, people spend too much in the summer because they want to show off. People want to feel and look rich. The problem is that most people do not have the financial means to afford everything they want. That is why they rely on debt to finance everything they desire.
Buying everything on credit because you feel like it, only leads you to accumulating too much debt and long-term financial struggles. You can easily save money during the summer and avoid impulse shopping by using cash. If you don’t have cash to buy something, don’t buy it. It means you cannot afford it. This way, you will only buy things you can afford and save money during the summer.
