Before I start, I wish you all a very Happy and Prosperous New Year. I hope that this new year brings financial success to you.
Holiday enjoyment is over, and you’re all set to hit your daily routine. But, have you taken a look at your credit card bills after the holidays? I guess, many of you haven’t! Well, it’s time to fill your bank accounts with sufficient money and get rid of that money hangover. It’s New Year and the time for a fresh financial countdown begins.
Financial woe: Tips to recover finances
We often ignore the financial damage caused by holiday spendings. But, it’s important to repair the damage soon. Or else, it’ll leave its mark for a lifetime.
Are you facing a holiday spending hangover? If yes, then have a look at the tips below and get your finances back on track:
Tip no. 1: Maintain discipline
Do you want a successful financial life ahead? If yes, then discipline is the first stepping stone here. It’s the solution for every problem. Be disciplined, spend less, boost your income, adopt good financial habits and you can become debt free soon.
Tip no. 2: Pay off debts first
Debts, debts everywhere! This is quite common after the holiday expenditures. You may feel a little a lazy to sit with the bills after the holidays are over. But remember, your outstanding loans, credit cards, and store cards all need your attention now. It’s time to prioritize your debt first. So, decide a repayment strategy and don’t stop till you pay them all.
Tip no. 3: Make a cash diet plan
During holidays, cash flow is quite common. But, it gets even faster if we use credit cards. Experts say that we tend to spend less when we use cash.
So, if you want your financial life get back on track, go for a cash-only diet. . It’ll help you to keep a record of your money and automatically you’ll spend less.
Tip no. 4: Understand your financial position
To understand one’s own financial situation and act accordingly is the real challenge. You should first find out your net worth, that is, all your assets minus all your liabilities is your net worth. This signifies your real financial position. The higher your net worth, the better your financial position.
Is your net worth less than the previous year? If yes, then hurry up take steps to manage your money well. Don’t indulge in unnecessary spendings.
Tip no. 5: Learn from past mistakes
You have done loads of shopping this holiday season without even weighing your purse. Today you stand knee deep in the unpaid bills. You realize your mistakes. Now, what? Realization is not enough. Try to learn from your past mistakes. .
Next year, . Don’t buy useless things. Only buy what you need. Make a list of the things you need to buy. This’ll help you to keep your spending obsession in check.
Tip no. 6: Set financial goals
The hard reality of overspending during the holidays won’t change. But now, it’s time to chalk out fresh financial goals. Next year, before the holiday shopping, . If you find out that it’s crossing your budget, then opt for a reasonable alternative.
Tip no. 7: Check out your money’s whereabouts
To know where your money is going, :
- Financial commitments - rent, mortgage, insurance
- Discretionary spending - eating out, entertainment, gifts, and other non-essential items
- Essential spending - food, transport, etc
Analyze each category carefully and find out how much you are spending for unimportant goods. Try to minimize those as much as possible and you’re ready for a new beginning.
Tip no. 8: It’s all about savings
Every time you receive your paycheck, make it a point to put some amount in your bank account first. You can also . Spending without saving is a grave mistake. So before you spend, make sure you have enough money in the coffer.
Tip no. 9: Make correct choices regarding savings
Making the right financial decision at the right time is important. :
- create an emergency fund
- repay high-interest short-term debt first
- create a monthly budget
- create a fund for short term goals
- give DIY gifts to save more
- pay bills on time
- avoid unnecessary spendings
Tip no. 10: Find out an alternative entertainment
Theaters and restaurants are costly entertainments, and their obsession can make a hole in your wallet. If you have a habit of visiting these places on every occasion, then beware! This can bleed your finances. Instead, search online for movies and recipes.
Try out something different this weekend. For example, instead of going to a movie, you can play a cricket match with your family in the backyard of your house. This helps you to save that extra penny that you’ve planned to spend in the theater. Think of some alternative entertainment plans and save your hard earned money.
To regain your lost financial position after the holidays is hard. But, if you follow the above tips you can regain your finances to a great extent.
Do you want to share any other tips? Then do write to us.