Summer Spending Spree
With two pandemic summers under our belts, a majority of Americans – 53% – say they are making plans to treat themselves this spring and summer to mark the end of pandemic-related restrictions and the number of COVID cases falling, according to a March survey. At the same time, nearly half of U.S. residents – 47% – say they don’t plan to increase their discretionary spending this summer, notes the same survey of nearly 2,500 adults. Total vacation spending in 2021 for American households was expected to exceed $150 billion. That total — $153.7 billion — represented a 160% increase over summer vacation spending in 2020 and a 50% increase from 2019.
Try the 50/30/20 budget
• Use 50% of after-tax monthly earnings for your must-haves
• 30% on wants
• 20% on savings
If you bring home $4,000 a month after taxes, $2,000 should pay for housing, transportation, utilities, insurance, etc. 30% can go to entertainment, dining out, streaming services and trips. The remaining 20% should go to savings.
Make a separate summer budget
The 30% for “wants,” is how much you have for extras this summer. To stick to your budget, write down all of your anticipated expenses including childcare, camps, entertainment and any trips you’re taking for weddings or a vacation. Then estimate how much each will cost to get a better idea of any shortfalls.
This article was provided by SavvyMoney.
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