Summertime savings: If you want to become financially independent, you must live within your means, and that translates into carefully controlling and budgeting your spending over the summer.

• Author: Vento, John J.
• Position: Economics

FOR MANY OF US, summertime is sacred. It is the time of year for fun and relaxing with family and friends --and so, every year we try to make the absolute most of these warm months and, more often than not, that means spending money we do not have. Beach vacation with the entire family? Put it on the credit card. Country club pool membership? Just take money out of the rainy day fund. New shades and other summer duds? Whip out the plastic again. However, this spend-now-worry-about-it-later mentality means severe setbacks when it comes to reaching overall, long-term financial goals. Mark this Fourth of July by declaring your own financial independence and making a commitment to living within your means.

This requires that you live on less than your take-home salary and any other resources you receive, such as income from an annuity or a trust. It certainly does not mean existing from paycheck to paycheck or living on credit or loans. You must figure out how to pay for your needs and wants, and then budget your income so that you still have a little money left over. It also requires that you save money.

You must pay into your personal savings. Ideally, that payment should be 10% or more of your gross pay, and all of that cannot go out the window when summer rolls around and you want to go on a nice vacation.

The good news is that, when your entire family works together, you easily can adopt several summer savings strategies. Think about it this way: if you can implement a plan this summer that helps you save just $20 a week, and keep it up for an entire year, you can tuck away an extra $1,040.

Here is how you can make a commitment to saving this summer:

Stay cool without breaking the bank. Hot summer days mean your air conditioner practically is running nonstop, which means your summer power bills sometimes can break the bank. You can allay some of these costs by employing a programmable thermostat to minimize utility use and cost or by installing ceiling fans to allow you to swallow up less air conditioning. You also should make sure your home--especially your attic--is insulated sufficiently. If the insulation in your attic is less than six inches thick, you are underinsulated. Insulation of 12 inches thick can lower your heating and cooling costs by 25% in a year.

Save on gas. A great way to cut back on how much you are spending is to trade in your car for a bike. If you live close enough to your work, enjoy the warm weather by biking or...