Summer is here. Covid cases have declined. Outside is officially open. As you enjoy being able to leave your home and live life as you did before the pandemic, be mindful of your spending. Despite the delayed gratification we all had in 2020, the urge to make up for lost times might be good for our psyche but bad for our wallet. If you aren’t careful, you could find yourself spending way more than you anticipated. In order to continue to progress in your financial goals, avoid these 5 money mistakes this summer:
1. Going out to eat too often. Whether it’s brunch, happy hour, or a birthday dinner many people tend to eat out a lot more frequently in the summer. I know I do. With the increased prevalence of food delivery apps like Doordash and Uber Eats, I order takeout meals more often as well. If I’m not careful, I can easily spend $100-200 a week eating out. Although the food may taste amazing and the time with friends can bring happiness, these endeavors, when done on a frequent basis, can be quite expensive. In order to be a money savvy young professional, we must be mindful of this added cost. It’s not that we can’t eat out at all, it’s that we must resist the urge to do so too frequently.
2. Not having a budget when you travel. Now that things are opening back up, one of the things many of us cannot wait to do is travel! We long to get out of our homes and away from our cities to visit someplace else. Although traveling can be fun and provide a much-needed break from our current lives, don’t forget to budget! Many of us factor in the cost of a flight and hotel, but we underestimate how much we will spend on food, uber rides, drinks and entertainment after we arrive. If we aren’t careful, those expenses can add up quickly and before you know it, you’ve spent way more than you planned and re-accumulated the credit card debt you worked so hard to pay back. Avoid this by budgeting appropriately. Before you go, estimate how much you will spend on incidentals like snacks, drinks, and transport. Find ways to cover those expenses without putting it all on a credit card. Don’t let improper planning turn your vacation into a financial catastrophe.
3. Overspending at bars/lounges and happy hours. If there’s one thing friends love to do in the summertime, it’s go out. Although many of us may no longer be in clubs until 2am, we likely still enjoy a good happy hour after work or a nice lounge on the weekends. Although there is nothing inherently wrong with these activities, they can serve as unexpected money pits that take away all of our disposable income. If you aren’t careful, you can easily drop $20-30 on drinks, another $20 on an appetizer and tip. Before you know it, you’ve spent almost $50 and still need to get dinner. While this may not break the bank if done every once in a while, hitting a happy hour every week can start to add up. Nightclubs and lounges can be even more expensive, especially if you try to get a section to sit down and split a couple bottles or drinks with friends. You can easily send $200-300 if not more, on a night out. While this can lead to great times with friends, don’t let it shatter your financial goals. Try to set a spending limit when you’re out and don’t go over that amount, That way you can enjoy the evening without overspending and regretting it in the morning.
4. Buying new clothes for every occasion. Whether it’s the desire to post photos in new outfits or the unexplainable feeling of excitement I get whenever I purchase a new dress, one of the financial mistakes I used to make a lot is shopping. Specifically speaking, I loved to buy new clothes for special occasions and in the summertime, there was ALWAYS a special occasion like a friend’s birthday party, entertainment event, or upcoming vacation for me to shop for. Although shopping and wearing new clothes brought me joy, seeing my bank account diminish soon after I got paid was definitely NOT a good feeling. If you’re like me, and can get a little carried away when it comes to shopping, try to put barriers in place and approach things differently this summer. Delete text messages from stores about sales, unsubscribe from store emails, make a concerted effort to re-wear things you haven’t worn in awhile, and resist the urge to buy something new when you have other outfits in your closet that could work just fine.
5. Underestimating the costs of weddings/special events. Another thing we need to be careful not to do this summer is underestimate the costs of special events like weddings. As we enter our late 20s and early 30s many of our friends and co-workers may start getting married and having children. This means there will be lots of engagement parties, weddings, gender reveals, and baby showers to attend. Although these events may create memories that last a lifetime, make sure you plan ahead. This means setting aside money each month for these costs and understanding that you may not be able to make ALL of the events. Set a budget and plan ahead.
8 Affordable Ways To Take a Vacation
It’s summer time and most of us would love to take a vacation. Unfortunately, planning and actually paying for a vacation can be tough, especially for medical students and young professionals who are on a tight budget. Here are a few things I did to lower costs when I traveled:
1. Travel during a different time of the year. Most people like to travel in the summer. The weather is nice, kids are out of school, and it’s easier to take time off from work. However, vacation prices are usually more expensive in the summer. To cut costs and save money, I tried to go on vacation during other seasons. Going to warmer places in the spring not only saved me money but also spared me from the insufferable summer heat. Planning tropical vacations in the winter allowed me to escape the cold weather and snow from up north.
2. Find cheaper flights. Call me crazy, but I do not have allegiance to one airline. I try not to make myself suffer through a flight on Spirit or Frontier but besides those two exceptions, I’m open to booking an affordable flight on just about any airline. In fact, I have a separate email address I use for coupons and store discounts. Before I book a flight, I look through those emails for any discount codes, then search kayak or google flights for cheap round trip tickets.
3. Use Airbnb instead of hotels. As a female physician in her late 20s, I like a certain level of class. I’m not a huge fan of hostels or sharing a bathroom with random people I’ve never met. I left the dorm life in college and I do not want to go back, ever. Airbnb is different. The last two times I’ve traveled out of the country (to Puerto Rico and Mexico) I’ve stayed at an Airbnb. The places were clean, the hostess was reliable, and I had zero issues. Plus, it was drastically cheaper than hotels or resorts and was conveniently located within walking distance of the places I wanted to visit. If you’re traveling with a family or in a group, Airbnb’s can save you lots of money and even provide that “home away from home” feeling that is hard to recreate in a hotel.
4. Travel with people. Vacations are cheaper if you can split the cost with other people. Sleeping 2-4 to a room drastically lowered my cost per night. Sometimes I would even split an entrée with a friend at a restaurant if the portions were large enough. Traveling with friends can decrease your lodging and food costs, and the make the trip even more enjoyable.
5. Visit friends and family. If you’re working a tight schedule and can’t coordinate your vacation time with other people, consider the alternative. Go visit your friends instead. As a medical school graduate, I have many classmates who are starting jobs at various places around the country. In an effort to save costs (and maintain the friendship) why not go visit them? It might be nice to go skiing in Utah, hike the mountains in Colorado, or attend a Seahawks game in Seattle. Visiting close friends in other places will not only provide me with a place to stay but will also allow me to explore a new area with people I enjoy. Win-Win.
6. Search Groupon. Once I’ve settled on a vacation area and found affordable lodging (or a friend’s couch), I need to also search for things to do in the area. One of my favorite apps for finding affordable entertainment in a new area is Groupon. On this site, I can find discounts for almost anything. When I went to Napa Valley, my friend and I got a private wine tasting at one of the most beautiful vineyards for only $25. When I was in Georgia, my mom and I got spa and massage deals for half the price. That site has discounts for almost anything you can imagine.
7. Think about going to a conference. This may sound random, but hear me out. As a physician, and even as a student, there were tons of medical conferences each year across the country. From general medical organizations like the AMA to specialty specific organizations and recruitment trips, each year of medical school I attended at least 1 conference in a different state completely free. As a resident physician, I get CME (continuing medical education) money that I can use to attend conferences. Instead of forgoing this money or spending it on phone apps I may never use, I decided to allocate this money for conferences that just-so-happen to be in a place that I want to visit (wink-wink). Regardless of your profession, ask your colleagues if there are educational conferences your job could help you attend. Doing so may allow you to travel to a new place completely free.
8. Consider a cruise. As a person who went to medical school in Florida, cruises were a viable option. I only lived a couple hours from many of the major ports, which means I didn’t have to spend money on a flight to get to the dock station. Cruises are usually all-inclusive, so I also didn’t need to worry about lodging or food. There was free entertainment on the boat (i.e. Comedy shows and dance clubs). Plus, I had the opportunity to get off the boat each time we docked at new country. Cruises can certainly serve as an affordable vacation.
Tell me, what tips do you have on ways to take more affordable vacations?