Dec 30, 2019
Whether it’s one drink too many or one piece of pavlova too many, there’s always a little bit of regret mixed in with the post-holiday cheer. Unchecked celebration can lead to both physical and financial discomfort, unfortunately.
So if your wallet is feeling a bit lean after the holidays this year, here are a few ways you can quickly recover.
Get on a money diet, right now
The very first step is to stop spending. The holidays are over, for now. Hopefully you made out with plenty of gifts and gadgets and new clothes. It’s now time to limit your spending to the bare minimum of monthly expenses such as rent, groceries and utilities.
Make it a goal to focus on spending only on the essentials while you ‘money detox’ and recover from the last splurge. Pack away your credit cards and focus on just spending the cash you have.
Review your finances
If your bank account is ‘sick,’ it may be time for a checkup. You need to know exactly what the damages are before you can get back on track. It can be painful and even guilt-inducing to look over your bank and credit card statements of the past couple months, but it does no good to pretend the spending didn’t happen.
A careful review of your finances can help you identify certain spending habits that you might be able to remedy before the next holiday rolls around. You can check to make sure that all charges and debits are accurate and that you haven’t incurred any fees.
Take this opportunity to re-adjust your budget for the new year, as well. Planning a new schedule of wholesome spending can motivate you to stick to your New Year’s resolutions and reach your goals.
Prioritise paying off debt
Whether you racked up a high bill on your credit card or made multiple purchases with Afterpay, make sure you address those expenses as soon as possible. You don’t want debt and interest rates weighing down your finances as you head into the new year.
Make a plan to pay off your debt as soon as possible by budgeting out realistic payments on a monthly or weekly basis.
Be honest with yourself
Is this issue just related to holidays, or is the issue bigger than that? It may be time for a major rehaul of your spending habits.
Instead of beating yourself up each year after overspending, be honest with yourself. Accept the fact that you struggle with managing your finances. Next, identify the areas you want to improve in and then set in motion an actionable plan that will help you to spend more responsibly.
There are many decent (and free) mobile apps that can make money tracking a simple task you can do right from your phone.
For expert help in getting your finances back on-track, talk with an experienced advisor here at Calder Wealth Management. We’re ready to help you take back control of your spending and work towards your wealth goals so that your holidays become a season of true cheer, not of financial setback.
Written by Ben Calder at Calder Wealth Management.
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