Words by Charis Marr, Co-Creator, In Good Wealth
We all love summer. It is the season for schoolbreaks, a long awaited vacation and some much needed family time. With so much happening, we tend to loosen our purse strings, often leading to an unusual (and perhaps a YOLO mentality) spending pattern. Before we know it, all those little extras have added to a bigger financial spend than we expected. Then, once the holidays are over and we are back to reality, a feeling of panic or guilt about our summer spending can set in.
If this sounds like you, you’re not alone. Identified as a Summer Spender personality type, you’ve spent more than you intended and need to work out how to regain control without going into extreme deprivation mode. At In Good Wealth, we see this often. The honest truth is, overanalysing your bank balances or questioning “How did we spend that much over the summer?” is not going to resolve your financial situation. Neither is there a need to switch to extremes and cut out all shopping, delete the take out apps or instill strict financial plans that are just too rigid to sustain. The goal of a post-summer reset isn’t to erase what happened over the summer. It’s to take a step back, look at the bigger picture, reflect and learn from it to regain visibility and make your next money choices with intention. Further, it is about taking charge of your financial wellbeing, empowering yourself with a simple plan to feel confident and be informed to cross the line to be in a better financial situation. With this in mind, here are 5 steps to reset that post-summer syndrome to get your financial wellbeing back on track:
Step 1: Identify your actual holiday spend
A reset can feel overwhelming, however most people in this position don’t need to panic. To start, identify the amount that you spent over the holidays. It doesn’t need to be an exact spend to the cent but it needs to be an honest figure that you can then act on. The goal is to understand where you are to then be able to identify what comes next. Getting back on track will look different for everyone as income and surplus varies. The important thing is to stop guessing and start defining. When you have a clear picture of what “back on track” looks like for you, your money decisions become more intentional and less reactive.
Step 2: Spot the gaps you didn’t know add up
As you reflect and look at the bigger picture, it is important to ask yourself, “Where did the holiday spending fund come from?” Savings is one thing, however if you tapped your credit card one too many times, the priority should then be on paying this back. If not paid back within your time limit, your credit card will now have you paying additional interest on your holiday spend which will add to your debt. Aside from this, it is equally important to rebuild a cash buffer from your current account balance. Depending on how you spent and which card took the biggest hit will indicate which one to tackle first.
Step 3: Build your way back
Once you’ve identified the areas that need attention, the next step is to look at what’s coming in and decide how you’re going to close the gap. If there isn’t much breathing room in your income right now, choose one or two areas to scale back for a few weeks or months. It doesn’t have to be everything, and it doesn’t need to feel like punishment. The aim is simply to create enough space so you’re not constantly playing catch-up.
Start with the spending that is easiest to pause or reduce, rather than the things that genuinely support your day-to-day life. Small changes that you can actually stick to are usually more useful than dramatic cuts that only last a week. If you do have a surplus, consider putting it towards the debt that’s charging you the most interest first. Once that starts coming down, you can redirect the same money elsewhere, whether that is rebuilding savings, creating a buffer, or strengthening another part of your financial picture.
Step 4: If you slip, don’t panic
Even those with the best intentions cannot be perfect all the time. At some point, it is possible you will wobble and come off your plan. Life happens. It is important in these moments not to see it as a failure. Don’t allow one weekend to derail and demotivate you or have you slip further. Simply step back, recalculate where you stand and then refocus on your goals. A sidestep does not take away all the effort and progress you’ve already made.
Step 5: Plan for the future
Once you are back on track, start planning with intention. Financial wellbeing is about better money habits so you do not find yourself in a Summer Spender persona in the future. If you love to travel, your focus might be on building savings for future trips without sacrificing other financial goals. It could also be an opportunity to accelerate your progress and make your money work harder. To start, free tools, such as the In Good Wealth “Prosperity Pulse Quiz,” can help you identify which money pillars are quietly holding everything back. Either way, as you start thinking about your next holiday, ensure to think about how you’re going to fund it before you’re already there.
Essentially, the goal is peace of mind. Money should support the life you want to live, today and in the future. Financial wellbeing is about spending on the things you love and deciding in advance instead of figuring it out along the way. Life is for living and you want to fund it on purpose.
To learn more, visit ingoodwealthhub.com or follow @ingoodwealthhub.
