The end of year holidays are one of the most awaited moments for some people. Many of us plan to spend the long end of year holiday shopping or traveling outside the city or even abroad.
Moreover, currently there are lots of recommendations for tourist attractions that have gone viral on social media. There is also various content for calculating your budget when on holiday. Unfortunately, some people often spend more on vacation, then regret it.
So, how can we get back on track and start anew financially in the new year? Maybe we can make a financial recovery after the holidays? Come on, find out how below.
Do not blame yourself
Reporting from Real Simple, spending time thinking about the finances we have spent during the holidays is useless. Instead of regretting it, you can focus on moving forward, not berating yourself for decisions that have already happened and can no longer be changed.
Assess the Damage
Illustration/Photo: Unsplash/Josefa nDiaz
After realizing your financial condition after the holidays, try to assess the damage. Take the time after all your financial reports to find out clearly how much you spent, including your debt during the holidays, especially when you used a credit card.
Previously, there were many methods to record expenses to make it clearer. Choose a method that suits your needs in tracking all expenses. So, you can see how much you spend during the holidays. Then, you can start making a budget to get back on track financially after the holidays.
Start with a No Shopping Month
Illustration/Photo: Unsplash/freestocks
According to Bankrate, one of the best ways to reset your budget after the holiday season is to detox your spending with a month without spending. During this time, commit to not buying anything beyond your needs.
The list of main needs usually includes household shopping, transportation costs, health services, and monthly bills. Meanwhile, you can stop spending on new clothes, app subscriptions, watching movies, or other habits for a moment.
Plan Finances
Illustration/Photo: Unsplash/Alexander Grey
The next tip is to plan your finances ahead. The first step that must be taken is to pay the debt as quickly as possible. See how likely you are to be able to pay it off with the money you currently have. Then make a plan to pay in the next few months.
After completing your plan to pay off your debt, you can start making a list of priorities to rebalance your expenses and income in the future. You can even plan ways to get new financial sources through the hobbies you have.
Look ahead
Illustration/Photo: Unsplash/Mimi Thian
Financial mistakes during the year-end holidays are your opportunity to learn to manage your finances wisely. However, if this isn’t the first time you’ve spent more than your budget, perhaps you’re not spending and saving money realistically.
It’s best if you start trying to outline financial goals, for example buying a house. Then, note down what steps you need to take to make it happen. Planning like this can be a great way to overcome the challenges of overspending during the holidays. Clear financial goals will help you stay on track in the future.
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