Summer’s Over | How to Get Yourself Back on Track Financially

For most of us, summer is over – the long break of having our kids home every day and trying to keep them busy is now over – they are back in school.

Not for all of us, but for many.

Now that they are back in school, it’s a great time to refocus.  Over the summer, keeping your money in check may have been hard – you might have struggled with keeping your kids busy.

You took them to the movies because they were bored – while at the movies you got them popcorn (because you can’t go to the movies without popcorn – right?), you may have even took them to the pool and out for a burger on the way home.

Now that they are back in school or going back over the next few weeks, you’re faced with back to school supplies.  Sales are everywhere.. new backpacks, better backpacks, fancy folders, headphones for their school supply list, or maybe a half dozen glue sticks. Better yet, maybe 2 or 3 dozen glue sticks…..per child. :)

Perhaps you are still trying to figure out why one child needs 24 glue sticks and 20 dry erase markers – I know I am.

Now, before I was so easily distracted… lets get back to the topic at hand…

In addition to the school supplies, you have new clothes for the kids – shoes for class, and shoes for physical education… money to give to the teacher for their special school folder, newspaper for the classroom and – we can’t forget: hand sanitizer. Can’t bring your own though… but the school will certainly take your money to buy what they feel is the best option.

It’s also around this time of the year that car dealerships start marketing the perfect vehicle for families – after all, you need a reliable family vehicle to transport your kids to school. They also need to clear out older models to bring in the new car models for the upcoming year.  With that, you might notice the heavy marketing push on television or even if you pull into the dealership lot. Yikes.

Everywhere you turn, you see dollar signs – money for supplies, money for clothes, money for upcoming field trips, activities, and transportation. Now is the time to refocus and get on track so you don’t fall into a trap of opening the wallet too far and losing sight of where you are going.

You need to get back on track, and you can’t procrastinate. Labor Day, Halloween and Fall Break are just ahead. And then, Black Friday and Christmas. Better get that plan together now – or you’re in for a wild ride.

#1 – Sit Down with your Bank Account

Or, take 15-30 minutes and put yourself in front of your computer with paper, and pencil to determine what is going in and coming out of your bank account. Take note of where your money has been going, and what might be approaching – balance your expenses to determine what you have left to work with so you can understand what you see.

You need to know where you are now in order to plan effectively over the next few months.

#2 – Formulate a Budget 

Once you sit down with your bank account and upcoming expenses, you need to determine where you are going to put your money. Download FREE budgeting forms online (there are SO many resources)... and physically write down all of your expenses – from mortgage to electricity, gas, internet, phone, and even school expenses for your children, investments, and insurance payments. Determine how much you have remaining, so you can budget for groceries, fuel, and any miscellaneous spending money.

Ideally this should be done before you get your paycheck.

#3 – Set the Cash Aside

Your remaining budget (Groceries, Insurance, School Supplies/Expenses) can be determined by putting cash in your envelopes.  For many of us, spending cash can be painful (I know it is for me) – – when you set cash aside to use for specific expenses, you tend to stick to a budget  better because spending can be painful. 

Here’s a question to think about: If you have a $20 bill and a $10 bill, you likely aren’t as willing to stop for a soda knowing that you might have to “break” the bill. But if you have a debit card, you will likely be quicker to spend – swipe the card, and it’s easier.

Overall, when given a plastic card you tend to spend more since there isn’t quite as much pain involved.

Related: 3 Results of Paying in Cash

#4 – Learn to Say No

Learn how to control your spending – not only will you need to be able to say “no” and accept that you cannot make random purchases on impulse, you’ll also need to help your spouse and kids understand that certain things are not in the budget.

Hard to say no at first, but it gets easier. And over time, your children will understand. Perhaps they might adjust easier than you or your spouse.

Related: Saying No to the Pressure of Spending

#5 – Commit to Saving NOW

It can sometimes be HARD to think about the future, when the future seems so far ahead. If you can convince yourself that there IS a future ahead, you’ll be motivated to establish and consistently commit to sticking to a plan to help you put money away.

A plan by itself will not help you reach your goals. It’s so easy to say you will do something in the moment, but incredibly difficult to follow through in practice. 

Not only do you need to take these steps to get back on track, you need to also monitor and report your spending activity regularly.    Getting back on track is not an easy feat – in some cases it can be a pretty rough transition. But finding ways to keep yourself engaged through small reachable goals and milestones, will keep you motivated to continue even through the challenges.

Related: How to Stay Financially Motivated