Show 47 - Carefree Summer Saving Strategies with Stephanie Lyons
In this episode, I talk with Stephanie Lyons from MasterPiece Financial about how you can prepare yourself now to have a worry-free summer--financially speaking.
8/21/20241 min read
Does your school do 10 month contracts without retained pay? In other words, do you have to figure out how you’ll pay your bills over the summer because your regular teacher paycheck isn’t coming in? If so, this episode is for you. I talk with Stephanie Lyons about preparing yourself financially for the summer months. Why is this episode being released right as summer is ending? Not is the time to start preparing!
Key Ideas
To budget successfully for the summer, it is best to figure out either what your net pay is or your average total expenses every month. Multiply it by two (one for each summer month you aren’t working) and then divide that by 10 (the months of your contract). That is how much you need to save every month to be fully prepared.
There are many strategies to help you with this saving. Automatic withdrawals from your bank account to a separate summer account, using a high-yield savings account to maximize your return and minimize your risk, saving all of your stipend income from afterschool programs or other work during the school year for the summer, etc.
Paying off debt is probably more important than saving for the summer because you can avoid interest, and then work during the summer to pay your way.
Your summer savings and your emergency fund are two separate accounts for two separate reasons.