Summer is a time when Americans find themselves spending more money than they would like to. With students and adults on vacation, the average American planned on spending $2,788 on summer travel in 2015. American parents spent an average of $601 per child during the summer of 2012; that amount grew when children attended camp or went on day trips.
With increased amounts of money being spent during the summer, many people want to know how they can bounce back from overspending. We at Insurance Incorporated have compiled a list of seven things you can do to help your finances recover.
1.) Eliminate debt.
It is very important to pay off credit card debt on time as doing so will reduce the long term impact of overspending. When you pay off credit cards, pay off cards with the highest interest rates and work you way down to those with the lowest rates.
If you are able to consolidate or refinance your loans you might be able to obtain a lower interest rate or a lower monthly payment. If you can do both you will save money monthly and over the course of the loan’s life.
3.) Request a rate reduction.
Call your credit card company and request a rate reduction. Although success is not be guaranteed, this tactic could save you a good deal of money.
4.) Stop consumption habits.
According to articles from the Daily Mail and 24/7 Wall Street.com, American households spent $1,200 a year on fast food in 2014 and $435 on alcohol in 2009. Dropping addictive habits now will leave more money in your wallet and your body in better shape.
5.)Eliminate unused memberships.
Do you have memberships that you no longer use? Netflix? The gym? Memberships you don’t use but are still paying for are nothing but dead weight on your finances.
6.)Fill your tires to the appropriate pressure.
Has that road trip left your car tires a little under-inflated? What about the weather?The Department of Energy has found that for every 2 PSI your tires are under-inflated you lose 0.6% of fuel efficiency. Most service stations and some tire dealers provide free air you can use to fill your tires.
7.)Adjust your budget.
If you are having difficulty paying your bills it might be time to adjust your budget by determining which monthly expenses are necessary and which ones are superfluous. Simple adjustments such as turning up the thermostat, planning meals, and carpooling to work can have a positive impact on your budget.
8.) Review your Insurance policies.
Reviewing your insurance policies is one of the best ways to find gaps in coverage or to discover that you are paying too much for it. Insurance professionals recommend that you go over your policies at least once a year with your agent.