Labor Day Weekend: Smart Ways to Spend, Save, and Splurge Responsibly

A long holiday weekend can be a good excuse to get together with friends and family, tackle a project around the house, or take advantage of an end-of-summer sale. It can also be an easy time to spend more than you planned.

Between cookouts, travel, shopping, and entertainment, several smaller purchases can turn into a much larger weekend expense.

A little planning doesn't mean you have to skip the fun. These Labor Day budgeting tips can help you decide ahead of time where you want to spend, where you can save, and which purchases are worth waiting on.

Set a Weekend Budget Before You Shop

Before Labor Day weekend begins, think about what you plan to do:

• Are you hosting a cookout? 

• Taking a short trip? 

• Shopping holiday sales? 

• Spending the weekend at home?

Once you know what's on the calendar, give yourself a reasonable amount to spend and divide it among the expenses you're likely to have.

Your weekend budget might include:

• Groceries and cookout supplies

• Gas or other travel expenses

• Restaurants

• Entertainment

• Shopping

• Home improvement purchases

You don't need to account for every dollar before the weekend begins. The goal is to have a general spending limit so you're making purchases with your overall budget in mind.

It can also help to check your account balance and upcoming expenses before deciding what you have available to spend. A holiday weekend at the beginning of September can quickly run into regular monthly expenses, so don't forget about bills that may be due shortly after the holiday.

First Western customers can use online and mobile banking to keep an eye on their personal checking account activity throughout the weekend.

Where to Save: Everyday Essentials

Labor Day Sales can make almost anything feel like a good deal, but a discount is only useful if you're buying something you already need.

Before shopping, make a list of purchases you were already planning to make. Then compare sale prices rather than allowing the sale itself to determine what you buy.

Groceries and Cookout Supplies

If you're hosting friends or family, start by checking what you already have at home. Condiments, paper products, drinks, and other small purchases can add considerably to the cost of a cookout when you're buying everything at once.

Planning your menu before heading to the store can also help you buy what you'll use.

Clothing and Seasonal Items

End-of-summer sales can be a good opportunity to purchase clothing or household items you've already planned for, but pay attention to whether you're buying something because you need it or simply because it's marked down.

A $100 item that's 40% off still costs $60.

Travel

For a short Labor Day trip, consider the full cost rather than just the hotel or activity that prompted the trip. Gas, meals, parking, admission fees, and other expenses can change what an affordable weekend away costs.

Looking at the total before you leave gives you a much better picture of what the trip will mean for your monthly budget.

Where It's Okay to Splurge

A budget isn't meant to prevent you from spending money on things you enjoy. It helps you decide which expenses are worth making room for.

If Labor Day is one of the few weekends your whole family gets together, spending a little more on the cookout may be worthwhile. If you've been saving for a particular home project and the materials are legitimately discounted, the holiday sale may be a good time to make the purchase.

The important distinction is whether the expense is planned.

Before making a larger purchase, ask:

• Was I considering this purchase before I saw the sale?

• Do I have money available for it without taking away from necessities?

• Will I still feel comfortable with the purchase when my next round of bills is due?

• Am I buying something I'll actually use?

If the answer is yes, spending a little more on something you've planned for can fit comfortably within a responsible budget.

Tips for Avoiding Impulse Purchases

Holiday sales are designed to create urgency. Limited-time pricing, countdowns, and messages about low inventory can make it feel like you need to make a decision immediately.

Usually, you don't.

For purchases that weren't already part of your plan, give yourself some time before checking out. Even waiting until the next morning can help you decide whether you want the item or are just responding to the sale.

A few other habits can help:

• Shop with a list. Decide what you're looking for before browsing.

• Compare the final price. Look beyond the advertised discount and decide whether the actual cost fits your budget.

• Be careful with multiple small purchases. Several inexpensive purchases can add up faster than one larger item.

• Check your account before you buy. Knowing your current balance and upcoming bills can put a purchase into perspective.

• Don't use savings simply because it's available. Money you've set aside for emergencies or another goal doesn't become extra spending money because there's a holiday sale.

If you do spend less than you budgeted for the weekend, consider moving what's left into savings instead of finding another reason to spend it.

Enjoy the Weekend Without Losing Sight of Your Budget

You don't have to choose between enjoying Labor Day weekend and sticking to your financial plans. Deciding what you can comfortably spend before the weekend begins gives you more room to enjoy the things you've chosen without wondering later where the money went.

Your checking and savings accounts can make that planning easier, too. Keeping money for everyday expenses separate from money you're saving for future goals gives each dollar a clearer purpose.

First Western Bank offers personal checking and savings options for different needs, along with online and mobile banking tools that can help you monitor your money along the way.

If you'd like help finding an account that fits the way you spend and save, visit your nearest First Western Bank location to talk with a member of our team.