Curing Your Holiday Financial Hangover
Wednesday, 06 January 2010 16:21
By the time you read this column chances are that you have spent ...and spent...and spent again to cover the cost of your festive season. Here are some tips on how to recover from a severe financial hangover brought about by all that spending.
Even though we live in Asia we are certainly not immune to Christmas. Although there are no official figures for Christmas spending for expats living abroad it stands to reason that if you are if you take part in seasonal festivities you will invariably be spending money. Sometimes you will spend - and borrow - more than you should.
If you are one of these people, do not waste time worrying about it. Instead put a plan in place that will help you get back on financial track. Here are a few pointers to help you do that.
Annual Overview
Start by creating an overall plan for the whole year. Make sure that it is realistic and achievable and monitor it regularly – once a month is a good benchmark – once a week is better!
Budget for Holidays
Instead of just spending haphazardly on travel and holidays as well as big ticket items that take your fancy – cars, stereos, computers – make your budget part of your annual plan.
Manage Your Debt
Pay off the credit cards or loans with the highest interest charges first. By prioritising your debt you will reduce unnecessary interest payments. Try to switch to credit cards that offer you something in return – like points that can save money when you travel etc.
Start Saving
Pay yourself first by putting money aside on a regular monthly basis. One of the best ways to do this is to pay a fixed amount in to a fund.
Keep Your Eye on the Financial Ball
Instead of blindly paying off credit cards, loans and bills, monitor your payments regularly to see that you are getting the best deals.
Spend Less Than You Earn
If you apply Pointers 1-5 you will find that this particular pointer will be easier to achieve. Spending less than you earn is much easier when you have a solid overall plan.
So, if you have overdone it this holiday season and you are nursing a financial hangover don’t fret. Instead just get on and fix it. Due care and attention might be all that is required to get you back on track. Happy New Year!
Even though we live in Asia we are certainly not immune to Christmas. Although there are no official figures for Christmas spending for expats living abroad it stands to reason that if you are if you take part in seasonal festivities you will invariably be spending money. Sometimes you will spend - and borrow - more than you should.
If you are one of these people, do not waste time worrying about it. Instead put a plan in place that will help you get back on financial track. Here are a few pointers to help you do that.
Annual Overview
Start by creating an overall plan for the whole year. Make sure that it is realistic and achievable and monitor it regularly – once a month is a good benchmark – once a week is better!
Budget for Holidays
Instead of just spending haphazardly on travel and holidays as well as big ticket items that take your fancy – cars, stereos, computers – make your budget part of your annual plan.
Manage Your Debt
Pay off the credit cards or loans with the highest interest charges first. By prioritising your debt you will reduce unnecessary interest payments. Try to switch to credit cards that offer you something in return – like points that can save money when you travel etc.
Start Saving
Pay yourself first by putting money aside on a regular monthly basis. One of the best ways to do this is to pay a fixed amount in to a fund.
Keep Your Eye on the Financial Ball
Instead of blindly paying off credit cards, loans and bills, monitor your payments regularly to see that you are getting the best deals.
Spend Less Than You Earn
If you apply Pointers 1-5 you will find that this particular pointer will be easier to achieve. Spending less than you earn is much easier when you have a solid overall plan.
So, if you have overdone it this holiday season and you are nursing a financial hangover don’t fret. Instead just get on and fix it. Due care and attention might be all that is required to get you back on track. Happy New Year!
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