THE HUSTLE and bustle of the Christmas season has ended and a New Year has begun. Many spent New Year's Eve with family and friends, and others indulged in getting the right outfit and purchasing expensive tickets for the 'most happening' party for that night.
Now that the festivities are over, some are saddened by the fact that they went overboard on the Christmas shopping and are now in debt to start the New Year. There is no need to despair, however, as there are some basic steps you can take to regain that financial balance.
ORGANISE YOUR DEBT
Make a list of all the payments you owe, in the order of the most important to the least important (taking payment deadlines into consideration). Then based on priority, allocate the income you are certain to receive at the end of January, to the various things on your list. Focus on paying those balances first.
CUT BACK
Make a list of your expenses for any given month. Go through that list and make a note of the things you can do without for a while, at least until you are as financially stable as you were before the Christmas season.
So, for instance, if you are accustomed to visiting the salon every week, make it twice or once a month instead. There is no rule against doing your own hair every now and then. If you dine out regularly, cut back and instead eat at home. These minor sacrifices are essential in putting you back on track.
EXPLORE OTHER MONEY-MAKING OPTIONS
If your weekends are usually free, seek a part-time job. You'll be surprised at how handy the extra cash will be in helping you to clear your debt. So for instance, if you're bilingual, you could teach extra classes to those interested in learning another language, or offer to baby-sit your friends/neighbours' children while they run their errands. If possible you can have a garage sale. Not only will you get rid of the things you'll never use again, but make money in the process.
SAVE WHERE YOU CAN
When you've reached the point where you've made necessary arrangements to steadily repay your debt, you should still try to save whatever little you can, especially if you dove into the savings you vowed never to touch for Christmas shopping. Aim to gradually build it up, because you might experience unforeseen emergencies this year. You may just need whatever little you can come up with to bail yourself out.
At the point when you've finally regained your balance, and you're once again financially secure, prevent this from happening again by making one of your New Year's resolutions be 'to always plan ahead.'
Separate the savings you can tap into from your major investments; like saving towards your retirement or purchasing a home. Explore investment options that can give you great returns in the years to come.
Happy New Year to you and yours from the DB&G family. To further discuss investing and the many options we have available, contact DB&G at info@mydbg.com or toll free at 1-888-CALL DBG.
