Welcome back, readers! It’s the day after Memorial Day which typically marks the official/unofficial start to summer.

The temperature isn’t the only thing heating up this time of year. The bills are bigger, FOMO is real and for many summer is a time when the pressure mounts.

• "How can I provide nutritious, affordable meals for my family with the kids home all day during summer?"

• "What are some realistic ways to keep my house cool without cranking up the AC and skyrocketing my electricity bill?"

• "How can I plan a cost-effective summer vacation that still feels special and memorable?"

• "How can I manage the additional childcare costs during summer break while still maintaining my regular work schedule?"

All excellent questions— and all will be answered. In what we’re calling our “Summer of Savings”. We’re going to be utilizing a portion of our newsletter for the entire summer to devote to your biggest summer-related issues.

🔥 ^{Hot off the press: Here’s what’s burning up our news feed.} 🔥

• 3 steps to building a streamlined summer budget

• This one mistake might just keep you from retiring

• We break down what a “debt ceiling” is and what it means to you

Let’s Chop It Up…

1️⃣ Building out that Summer Budget

We have noticed a truly disturbing trend develop (at least from our POV), people seem to think summer vacations and holiday spending (Christmas & Black Friday) are free-for-alls. 🙃

Like being on a diet and saying “It’s the weekend, calories don’t count” — Oh really Sharon because the scale says otherwise.

Not sure if it’s FOMO from seeing frenemies on social media or a true need to escape the daily grind, but one of the most dangerous things to do is spend without intention. For our first Summer Series Story, here’s how to ACTUALLY budget for summer.

Step 1: Roll Call 📣

Let’s see what you’re working with. Down to the last penny.

1. Add up every cent of your household income

2. List out every expense (subscriptions, monthly charges, etc.)

3. Subtract the two and voila. This is your remainder.

Not sure why some tend to skip this step but having a “loose” knowledge of your take home AFTER expenses is not the same as knowing.

Step 2: The Event Inventory

Next, let’s take a look at that to-do list. This includes all of your summer plans that will inevitably cost you money in one way or another.

• Baby showers

• Birthdays

• Weddings

• Family BBQs

• Vacations

You need a rough estimate of what each one will cost. (Don’t be too conservative, chances are you will overspend before you underspend).

Step 3: Keep Track

Do not assume (ever) that you’re still within budget for each week/month. Especially if you share a joint account.

Make a habit to track nightly how much has gone out over the day. It’s typically not the big expenses, but the Amazon buys and one-off grocery runs that push us over the limit each week.

🔑 Pepper’s Key Takeaways:

Laziness will not be your friend and it’s especially cruel during the summer months. Forgetting to track spending, failing to prepare on any level, and throwing caution to the wind will leave your pockets empty come September.

Plus, we all know just about the time you pull yourself back together again, it will be October (which in the eyes of retail) is basically Christmas.

This is how debt builds, this is how the financial handcuffs form. Debt rarely comes in instantaneous moments (minus houses, cars, and student loans).

Most of the time it’s like cancer. It’s a slow growth that if ignored can overtake you.

2️⃣ Rising Costs: Retirement's Nemesis

There's no sugar-coating this one: things are looking a bit grim on the retirement front for many of us, and it's not because we've suddenly developed an aversion to relaxing on a sunny beach somewhere. Nope, we can thank inflation and rising costs for this little party spoiler.

The Consumer Price Index (CPI) may have eased a tad from its whopping 40-year high last year, but it's still making us cringe with a year-over-year increase of 5%. That's got a whopping 30% of Americans trying to stretch their pennies a bit further, and not in a fun, magic trick sort of way.

This unfortunate trend is poised to hit those of us with lower financial literacy the hardest. That's right, our understanding of finances isn't just for impressing people at cocktail parties – it's a life preserver in these stormy economic seas.

But here's the really sad side to this story, a lot of us just aren't sure we can retire anymore, even though we really, really want to. Why? The lack of savings, understanding of retirement planning, and knowledge about retirement options like 401(k)s and IRAs. But don't despair! There are ways to turn this ship around.

🔑 Salt’s Key Takeaways:

Here is some actionable advice that will help set you on the right track if our current economic landscape has derailed your retirement plans or has caused you to get concerned about retirement altogether.

1. Financial Literacy - Your New Best Friend: Like it or not, understanding finances is as essential as knowing how to breathe (i.e., very). If you're feeling a bit lost in the financial jargon wilderness, it's time to buckle down and get yourself educated. Check out SaltandPepperMoney.com or reach out to financial advisors. Your future retired self, sitting on that beach, will thank you.

2. Debt Reduction - The Magic Wand of Finance: If you're up to your eyeballs in debt, consider paying it down as a top priority. A personal loan might be the spell you need to consolidate those payments and lower your interest rate.

3. 401(k)s and IRAs - The Underappreciated Heroes: Many of us either don't have or don't understand these retirement savings accounts. Here's a newsflash: they can be your golden ticket to a comfortable retirement, offering significant tax benefits. If you've stopped contributing to them, reconsider your strategy. You don't want to miss out on those employer-match contributions (after all it’s free money).

4. Retirement Planning - The Map to Your Golden Years: A staggering 26% of us don't know what to do regarding retirement planning. This is like setting off on a road trip without a map. It's time to get and stick to a plan. Consider speaking with a financial advisor or doing some self-guided research.

5. Confidence in Retirement - The Dream vs. Reality: Yes, the numbers might be a bit scary, but remember, we have the power to change our financial futures. Education, planning, and smart decisions can help us regain the confidence to achieve the retirement we deserve.

3️⃣ Debt Ceiling Rise: Wallets Beware or Economic Sigh of Relief?

Unless you have been living under a rock, you have probably heard about the need for the U.S. to increase its debt ceiling. They will be voting on this increase by June 5th, so this week we are going to help you understand what this all means a little clearer.

First off, the debt ceiling is just a fancy term for how much dough the government can borrow to pay off its existing bills. You know, like how you might use one credit card to pay off another (not exactly best practice 🤦🏼‍♂️). When Uncle Sam raises this ceiling, it's like getting a higher credit limit.

So, what does it mean for you if they go ahead and crank that ceiling up a notch?

Well, initially, not much. It would mainly signal that the government can keep funding its obligations - things like Social Security, military pay, and so on. The stock market would likely breathe a sigh of relief because, let's face it, Wall Street isn't a fan of uncertainty.

But there's a sneaky snake in this scenario. More government borrowing could potentially lead to inflation. That's when the dollar in your pocket doesn't stretch as far as it used to, making your grocery trips a bit more painful. Over time, it can also lead to higher interest rates, making mortgages and loans more costly.

Now, on the flip side, what if they decide not to raise the ceiling?

Well, this is where things get rocky. If the government can't borrow more, it might not be able to pay all its bills. This could lead to a default, which is as bad as it sounds. Think of it like a missed credit card payment, but on a colossal scale. The stock market could potentially plunge, and interest rates on future government borrowing could skyrocket. The ripple effects could make getting loans more expensive for you too, and it might put a serious damper on economic growth.

🔑 Salt’s Key Takeaways:

Okay, folks, no need to hit the panic button just yet. Here are a few action items to keep you sailing smoothly through either scenario:

1. Stay Informed: Keep an eye on the news (or just stay on the lookout for our newsletter 😎). Understand what's happening and how it could potentially impact your financial situation. Knowledge is your compass in these uncertain waters.

2. Review Your Investments: If you're invested in the stock market, brace for potential fluctuations. Don't make rash decisions based on daily changes. Instead, consider your long-term investment strategy and consult with a financial advisor if needed.

3. Prepare for Inflation: If inflation is on the horizon, consider budget adjustments. This might mean trimming some expenses or looking at ways to increase your income. It could also be a good time to lock in interest rates on long-term loans, like mortgages.

4. Watch Your Debt: In times of economic uncertainty, it's even more important to manage your debt wisely. Higher government borrowing rates could eventually mean higher rates for you. Consider reducing your debt and avoiding unnecessary new debt.

5. Emergency Fund: If you don't have one already, consider starting an emergency fund. It's always a good idea to have a safety net in case the economy takes a hit.

Buckle up for some real talk. Our candid, no-nonsense advice may not win popularity contests, but it sure gets results.

1. Boost Your Financial Literacy: Knowing your finances is key. From understanding your monthly expenses to the intricacies of 401(k)s, IRAs, and other investments, the more you know, the better off you'll be. Consider free online courses, read finance books, or chat with a financial advisor to enhance your understanding. Literacy isn't just power, folks; it's money in the bank!

2. Automate Your Savings: Let's face it, humans are forgetful creatures. Don't let your savings goals be a casualty of a faulty memory. Automate your savings to make sure a portion of your income goes straight into your savings or investment account. This way, you're building wealth without even thinking about it.

3. Pay Down High-Interest Debt First: Not all debts are created equal. Prioritize paying off those with the highest interest rates first, like credit card debts. These debts grow faster than a weed in your garden and can derail your wealth-building efforts. Reducing these debts frees up more of your income for savings and investments, moving you closer to financial freedom.

4. Invest in a Diverse Portfolio: Don't put all your eggs in one basket! Diversify your investments across different asset classes like stocks, bonds, real estate, and more. This helps to minimize risk and can enhance your potential returns. It's a financial seesaw; as some investments dip, others may rise, keeping you balanced and on track for wealth building.

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_{Disclaimer - Any content produced by Salt & Pepper Brands is intended for informational use only. When it comes to managing your funds, we love to provide high value to our readers and give actionable tips. However, you shouldn’t construe anything here as legal, tax, investment, financial, or other advice.}