Thursday, 23rd February 2017

Making Money

Recover From Holiday Spending

You spent a lot of money during the last holiday season. Rachel Faith Cruz tells us how we can recoup those expenses while still enjoying the New Year.

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19 Jan 2011 Print This Post Print This Post

    photo: www.photoxpress.com

    Now that the gift-giving season is over and you’re done playing Santa Claus, the magic of Christmas has diminished by turning into credit card bills and distressing bank account balances.

    Financially bouncing back after the holidays may be tough for many people, but it’s not impossible to do.

    Start off with a good recovery plan to work at fixing your post-holiday financial woes. Take a look at these suggestions:

    Manage Your Cash Flow Efficiently

    As bills keep coming in, manage your cash flow efficiently by keeping track of it. This ensures that you don’t incur more debts with needless spending. Create a simple financial sheet on a computer program and list down your income or allowance against monthly expenses and savings. Include a projection on incidentals like spending for entertainment, purchases of personal items and personal care. This way, you have a clearer picture of where your money goes in the next few months.

    Save Seriously

    Most people make a promise to themselves to save money at the start of the year, and yet they never really fulfill it. Commit to doing this by using the cash gifts you’ve received from relatives over Christmas and then open or fund a new savings account. You can also allot part of your monthly earnings as savings. Some banks have an automatic savings program that sets aside a percentage of your income, especially when you forget to do this.

    Earn Extra Cash from De-cluttering

    Spend one weekend sorting through your stuff and segregate clothes, books and other items you no longer have any use for. You can hold a garage sale at home or at school, sell these at second-hand stores, or put it up for auction at online sites. The money you earn from these items can be used for paying your credit card bills or it can go directly to your savings account.

    Take Control Of Your Credit Card

    If you own a credit card and you have not maxed out your balance, give up using this for at least two months. Take it out of your wallet while still paying off debts from spending so much during the holidays. Pay the minimum amount as soon as the bills arrive and make sure to pay before the due date to avoid incurring additional interest. Pay above the minimum amount if you are able to do so and increase your credit card balance faster.

    Shop For Items on Sale

    If you really have to shop, do so only with cash. Canvass and compare prices before buying anything. Check out stores for any merchandise they may offer at discounted prices. Take note of the sale schedules of your favorite retail store or mall and then shop for branded or formerly expensive items during this period. You can definitely save a lot from buying these at a discount.

    Spend Within Your Means

    While it’s good to give yourself a treat once in a while, it’s probably best to cut down on pleasure and entertainment until you can recover from your holiday expenses. Pursue less expensive activities instead. A day spent biking at the park and eating hotdogs-on-sticks can substitute for dinner at an expensive restaurant.

    In a couple of months you will eventually find yourself back on track, if you stick with a good plan. And if recovering from a holiday hangover must teach you something, you can probably start planning your gift-giving budget right now and avoid going through this again next year.

    Learn more! Check out:
    The Money Book for the Young, Fabulous & Broke by Suze Orman
    Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom
    The Clutter Cure: Three Steps to Letting Go of Stuff, Organizing Your Space, & Creating the Home of Your Dreams



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