Summer Financial Tips
As summer rolls around again and the world starts to open up after COVID lockdown, many people are eager to dig into their wardrobes and pull out those swimsuits once more. It has been reported that more than one-third of the planet's population was under some form of restriction as the World Health Organization called on "all countries to continue efforts that have been effective in limiting the number of cases and slowing the spread of the virus.”
At the same time, those businesses that survived the past few months are more than happy to have their doors open again. The full effects of lockdown on many industries are yet to be seen. And while some are predicting an economic boom once restrictions are lifted, there are many industries that have been devastated. Among those hardest hit are travel and tourism, professional sports, entertainment (festivals, movies, nightlife, etc.), and small business — especially the retail and restaurant industries.
Notable too is that financial markets as a whole have sustained a major blow during the pandemic. The fintech sector has suffered a drop in all-level transactions as people are spending less during the lockdown. A low transaction rate has led to a major dip in the value of cryptocurrencies such as Bitcoin and Ethereum.
There will be many opportunities to loosen your purse strings and revel in the much-missed freedom of a restriction-less summer — travel and vacations, summer sales, weekend getaways, bottomless margaritas, and so on. But don’t think that the many industries who are back in business now won’t capitalize on your summer spending.
As an example, airline travel has become more expensive. While this may seem counterintuitive, the answer is simply supply and demand. Far fewer people have been flying recently. That’s the demand side of the equation. But most of the world’s commercial jet fleet is parked, so while demand has dipped, so has the supply of airline seats.
Despite the many ways we can let loose on spending habits this summer, there are actually some ways to save. Some money-conserving strategies may have occurred to you already and a variety of ways to be more frugal that will really add up.
Utilities
As you can imagine, home utility costs go up and down depending on the season. Electricity costs run higher in the middle of summer in an effort to keep your home at a desirable temperature. Be mindful of your utility usage habits, and find ways to cut down on the gas, electric, and water bills.
Shop Local
Summer harvest means that locally grown fruit and vegetables are abundant, and you can buy in bulk, saving some money, and supporting local farmers at the same time.
A new summer wardrobe might be on your list of things to buy, but the price tag on designer clothing from big labels and stores can add up quickly. Instead, consider supporting your local small businesses and getting great deals on good quality items at the same time.
Look for Deals
Coming out of a very trying time, there will be some retail stores looking to gain your business by offering very attractive deals and discounts.
Exercise
Losing that “quarantine 15” is probably quite high on the list for people venturing out of the house. But gyms might not seem that appealing — think about all those germs! Instead, save a bit of cash on that gym membership and get out into nature. Hikes, jogging, cycling, and similar activities are not only great for your health and immune system, they’re free.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC