You can save money year-round, but warm summer temperatures and school break or your vacation require specific strategies that don’t apply during the winter months.
Summer Savings Tips
If you need ideas to save money when temperatures start to rise, here are six low-stress ideas you can use to save money during the warm summer months:
Turn Off the Air Conditioning
This tip doesn’t mean you have to suffer through extreme heat, but you should be aware of the weather so you can maximize efficiency and save money by using air conditioning only when necessary. For example, if the night is going to be cool, turn off the air conditioner before going to bed and open a few windows. Cross-ventilation can also help. To do this, open windows on opposite sides of your home and set up a fan to blow air out of one window. This fan pulls cooler night air into your home while expelling the warmer, stale daytime air.
Cook Outdoors
Using the stove or oven at home can create a lot of excess heat with nowhere to go but into your home. You might consider using meal plans on the grill outdoors so you can keep cool inside. As a bonus: cooking outside turns an ordinary dinner into a fun picnic.
Let Your Clothes Air Dry
If you can hang clothes outside (not all homeowners’ associations or rental properties allow this), let the sun and warm summer breeze dry them for you. You’ll be amazed at how fresh your clothes smell after drying in the sun for a while. Even if you can’t hang clothes outside, try using the dryer on a lower heat setting, or partially dry your shirts and let them air dry the rest of the way.
Take Advantage of Extended Evenings
Instead of lying on the couch watching a TV show, use the extended daylight hours to enjoy the outdoors. You’ll save money on electricity by not running electronics and indoor lights, and you’ll also get some exercise. Use the long days to engage in some activities that bring you money from the gig economy, like driving, dog walking, or working outdoors for a few hours in any capacity.
Walk or Bike to Work Instead of Driving
Summer weather and long days are perfect for all of this. Replace driving to the office with walking or biking. Exchange air conditioning for fresh air and enjoy the beautiful weather while commuting to and from work.
Replace Your Air Conditioner Filters
It can be easy to overlook maintaining air filters, but a dirty filter can increase cooling costs. Dirty filters restrict airflow and the efficiency of the air conditioner, which translates to longer run times and higher cooling costs. Filters are inexpensive, so replace them regularly.
Plan Ahead for Future Home and Garden Projects
As summer begins to wane, it’s a perfect time to look for end-of-season discounts. Gardening plants, tools, and other outdoor project materials tend to be on sale when people start thinking about fall and spending less time outdoors.
Keep a Summer Savings Plan
If you save money all summer long, that’s great, but it’s important to have a plan for what you are saving for. First, identify your savings goals. Do you want to increase your emergency fund? Do you want to save money for updates to your home? Do you want to buy a car? Are you planning a winter vacation somewhere warm?
Identifying
Savings goals can help you stay motivated to save throughout the summer and beyond. Make sure your goals are specific and realistic, and that you have a clear timeline to achieve them. Using a budgeting app that includes a savings goal tracker can help you monitor your progress.
Next, think about where you want to keep your savings over the summer. It could be a high-yield savings account, a money market account, a certificate of deposit, or even an individual retirement account. The place you decide to store your money may relate to your savings goals and when you plan to use the money you’ve saved.
Saving accounts and money market accounts are easy to transfer, meaning you can withdraw your savings easily if needed. Certificate of deposit accounts are time deposits, meaning that if you withdraw funds before the certificate matures, you may face a penalty. Individual retirement accounts are designed for long-term saving, and early withdrawals before age 59 and a half can incur a 10% tax penalty. With any savings account, remember to check the fees and minimum balance or deposit requirements, as well as the interest rate you can earn.
Finally, start planning for next summer’s savings. When fall begins, look at the various ways you saved money over the summer. Use that as a guide to set new savings goals for the next year and challenge yourself to save even more.
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Sources:
Office of the Comptroller of Currency. “What Are the Penalties for Withdrawing Money Early From a Certificate of Deposit (CD)?”
Internal Revenue Service. “Topic No. 557 Additional Tax on Early Distributions From Traditional and Roth IRAs.”
Source: https://www.thebalancemoney.com/summer-money-saving-tips-1289941
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