Simple steps to cure the financial hangover from Holiday spending

December 26, 2006 at 4:49 pm Leave a comment

If you’re like most people, you probably spent more on gifts this Holiday season then you intended to. Don’t be mad at yourself, this it’s quite normal. So, if you are guilty of overspending, here’s a few recommendations to help you overcome the financial hangover and one easy step to make sure it doesn’t happen again.

Count the cost
Sit down and figure out how much you spent. Many times our expenses can be covered with a single monthly paycheck, sometimes two if you calculate the cost. If you’re on a budget, this would probably come out of your “discretionary” money. Often times, that’s money that’s used to eat out. So, you might have to sacrifice that night out with your spouse or significant other to pay off those Holiday bills. It’s worth it for a little peace of mind.

As many of you know, Moneytalk is a huge supporter of Dave Ramsey and his financial philosophy. One of Ramsey’s recommendations is to cut up the credit cards that got you in trouble in the first place, also known as a plastectomy. Cut up my credit cards?! You’re crazy! Some would think so, but overspending wouldn’t happen without them. Really, it’s up to you to decide.

Sell some stuff
If you want to get the Holiday bills paid off quickly, but don’t have the discretionary funds to do so, try selling some stuff. Check your attic, basement and garage for stuff you don’t use that’s just collecting dust. Who knows? You might just have enough stuff to cover your Aunt Susan’s fruit cake.

Save for the next time
Wouldn’t it be nice to have the money to buy your Holiday gifts and be done with it? No credit card statements and no worries about how you’re going to pay for them later. You can. Here’s how: save money. Tabulate this year’s cost and divide that by 12 (there’s 12 months in a year). The number you come up with should be the amount of money you set aside each month for gifts for the next year. That’s it. And, it works.

Good luck!


Entry filed under: Budgeting, Credit Cards, Saving and Investing.

5 minutes (or less) to change your life for 2007 It’s that time of year again

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