If you’re like most people, your expenses increased during the summer. Between vacations, birthdays, entertainment costs, and weddings, many people tend to spend a lot more in the summer than they do in almost any other season. Fall is a time to get back on track. Make a plan to balance your budget, stick to a spending plan, and make some strides forward in your finances. If you’re not sure where to start, here are 6 money moves to make this fall:
1. Set aside money from each check for entertainment expenses. As a young professional, entertainment expenses can be a challenge area for my budget. Some months these expenses are lower than expected. Other months, I’m shocked when I check my debit card balance. Perhaps you feel the same way? Instead of repeating the same patterns, make a decision to act differently. Set aside money from each check for entertainment and put a limit on how much you will spend on social outings each month. The purpose of setting aside money for entertainment is not to restrict you from living your life. The goal is to help you enjoy life in a financially responsible way. By setting aside a set amount of money for entertainment each month you can spend money in this area guilt-free with boundaries in place so that you don’t go overboard.
2. Make a travel budget for every trip. As a young professional with lots of friends and good health, I love to travel. Work can be stressful and taking the time off to explore a new area or relax with my loved ones is the refresher I need to remain productive at work. While travel clearly has its perks, as adults, we must prepare in advance for it. It’s not wise to plan a trip and charge all the expenses on a credit card. The goal of vacation is to use the time away to recalibrate not to go on an expensive trip that puts you in debt. Create a travel budget and plan ahead so you don’t overspend.
3. Plan in advance for special events. This is vital when it comes to special events. As a young professional in my early 30s with quite a few friends and associates, many of the people in my circle are undergoing life events. They are getting married, having babies, and buying houses, among other things. As one of their friends, I’m frequently invited to partake in the celebration. While I love to support others, I recognize that doing so can be expensive. Maybe you’ve noticed the same thing? One way to decrease the financial burden of special events is to plan ahead. One of my budget coaches suggested that I create a wedding/life event fund and put a couple hundred bucks from each paycheck into it. That way, when I get invited to special events, I have the financial means to participate while still maintaining my financial goals. Perhaps this is something you can try as well.
4. Have a spending limit when you eat out. I don’t know about you, but I love to eat. Good food warms my heart and is a consistent source of joy. Although it tastes good on my palate, it can sometimes be detrimental to my wallet. I cook a good deal at home but there are times when I want to eat out. Maybe I’m too tired to cook or one of my friends has invited me out to a happy hour or meet up over dinner. Although I have good intentions, sometimes I spend too much or accept these invites too frequently. As a result, I find myself spending way too much on restaurant outings. One way I’ve tried to limit this is by having a spending limit. I glance at the menu before I go and have a max amount that I plan to spend while I’m out. Having a spending limit allows me to still partake in the outing but do so in a more responsible way.
5. Establish a second source of income. One of the major things to do this fall is to try to increase your income. If you can’t get a raise at work, perhaps you can try creating a second source of income by monetizing one of your hobbies. While some folks opt to work overtime or get a second job that is similar to their main job, that may not be the right move for you. Spending too much time do any one thing can create burnout. Instead, find something you enjoy, a passion project you’d love to explore, or an area of expertise that you can provide to others. Discover ways to monetize it. The goal is to increase your income in a way that brings you more joy and allows you to use the money you make to have more of the experiences you desire.
6. Make your savings and investments automatic. This is probably one of the most important money moves I’ve ever made. Automation. Instead of having to remember to contribute to my work retirement plan, save money, or invest in my Roth IRA, I do all of these things automatically. Setting up automatic savings and investment contributions helps ensure that I meet my financial goals. It also helps ensure that my money is growing. Consider doing the same. Don’t rely on your memory. Make a decision today to save and invest a certain amount of money per month then set up automatic withdrawals and contributions from your paycheck to make it happen.
I’m a firm believer that we can enjoy the money we’ve earned while also investing it in a way that allows it grow. This fall, let’s make a commitment to do both. Plan ahead for expenses and experiences with others. Automate savings and investment contributions. Be a young professional who does both.