Summer is a time for fun and relaxation, but many Americans are using this season to focus on building their wealth by paying off debt. According to a recent survey, 41% of adults are prioritizing debt payment as a way to improve their financial situation. While it may seem like sacrificing trips, dinners out, and other enjoyable activities is necessary to pay off debt, financial experts offer some creative solutions to enjoy the summer while still making progress towards financial freedom.
Automating your debt payments is a simple way to ensure that you are consistently putting money towards your debt without having to think about it. By setting up automatic payments when you receive your paycheck, you can allocate a portion towards debt repayment while still budgeting for summer activities.
Consider a balance transfer if you have credit card debt. By transferring your balance to a card with a 0% introductory APR, you can focus on paying off the principal debt while also having some money left over for summer enjoyment.
Start a ‘sinking fund' to save for your summer goals while still making progress on your debt. Allocate a portion of your income towards summer activities and debt repayment to strike a balance between enjoyment and financial responsibility.
Opening a high-yield savings account for summer fun is another great way to save for activities without much effort. By setting up automatic deposits and earning extra interest on your savings, you can set aside money for summer activities while still paying off debt.
Look for cheap or free activities to enjoy during the summer. Prioritize local concerts, county fairs, festivals, and outdoor adventures that won't break the bank. By focusing on affordable activities, you can have a great time without compromising your financial goals.
Consider becoming an Uber or Lyft driver to make extra money to put towards debt repayment and travel plans. By driving in centrally located areas, you can reduce gas costs and earn extra income in your spare time.
When traveling, stay with family and friends to save on lodging costs. By visiting loved ones and splitting the cost of the trip, you can enjoy quality time with family while also saving money on accommodations.
This summer, prioritize both your financial goals and your enjoyment by using these creative solutions to pay off debt while still having a great time. By finding a balance between debt repayment and summer fun, you can make progress towards financial freedom without sacrificing the activities you love.