July 24, 2024
No Fourth of July Plans? Here’s How Much Money You Will Save

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It looks like a lot of our friends and neighbors will be celebrating the Fourth of July this year. In GOBankingRates’ recent Summer of Savings survey, only about 16% of Americans say they don’t plan to celebrate.

How are the rest planning to mark the holiday – and how much money will you save by having no plans?

In the survey, of those planning to celebrate the holiday, many of them plan to spend under $50. About 28% of those in the survey who plan to celebrate the Fourth of July said they will spend between $0 and $50.

Here’s a look at more of the spending breakdown from the survey:

  • $51 to $99: 19%

  • $100 to $199: 22%

  • $200 to $299: 10%

  • $300 to $399: 7%

  • $400 to $499: 5%

  • $500 or more: 8%

A lot of that money will be spent shopping for Fourth of July celebrations. In the survey, only about 24% of people said they don’t plan to shop during the holiday weekend.

So what are those who plan to shop expecting to spend money on for the Fourth? It’s probably no surprise, but the top item people plan to spend money on is food for their Fourth celebrations. In fact, 80% of those who plan to shop are expected to buy food for their July Fourth festivities.

Here’s a look at what else they plan to buy:

  • Outdoor essentials (grills, barbecue supplies, etc.): 36%

  • Summertime essentials (sunscreen, towels, etc): 32%

  • Clothing: 30%

  • A car: 5%

If you don’t have Fourth plans, it looks like you could be saving hundreds of dollars. Those figures don’t even include the costs of airfares, gas and hotels.

It’s great news that you’ll be saving money by not going out this Fourth of July – but what can you do with that money instead? Perhaps you could consider saving or investing it.

You might be a consumer who follows the 50-30-20 rule or a similar one. It says you should spend 50% of your money on needs, 30% on wants and 20% on savings.

Guess what? That money you are saving on July Fourth could be an excellent amount for savings or investing.

Let’s say you save $100 on this holiday. There are a few ways you can easily use even just $100 to grow your money. According to Due, “After all, the amount you invest at first is not really what matters when it comes down to it. It’s all about getting started.”

One idea is to open a Roth IRA. After all, it’s never too soon to start thinking about and planning for retirement. You could also put the money saved from the holiday in retirement accounts you already have open or in your regular savings.

If you’re looking to invest, there are some low- and high-risk options. The low-risk options include certificates of deposits, Treasury bonds and high-yield savings accounts. You could try individual stocks or venture capital if you’re looking for more high-risk routes.

Let’s say you want pretty much no risk. Perhaps paying down your debts or investing in a hobby or side gig could be a good use for your Fourth of July savings.

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This article originally appeared on GOBankingRates.com: No Fourth of July Plans? Here’s How Much Money You Will Save

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