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Surviving the Post-Christmas Financial Hangover

Surviving the Post-Christmas Financial Hangover

It is surprising how quickly the 25th of December can creep up on us. Even though it is the same time every year, it can be easy to succumb to the Christmas spirit and give our finances a bit of a battering. The tips I am about to share not only assist in the few days post-Christmas, but can also be carried over into the New Year to provide a good way to find more money for savings or debt reduction.

Take stock of your situation

This is the scary part! The first step is to face reality, look at the bank balances and see what the damage is. How much did you spend specifically for Christmas? Would you do it again? If so, divide this amount by a weekly/fortnightly amount (depending on your pay cycle) and make it part of a regular savings plan for the New Year. Next Christmas you can enjoy guilt-free spending and no Christmas hangover!

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Tighten the purse strings

One simple way of doing this with little pain is to begin with meal planning. There is a lot of variable spending in our weekly food budget. By taking 10 minutes before you hit to shops to plan what you are going to buy can save you serious $$$. Begin by grabbing a notebook and pen, write each day of the week, go to your pantry, fridge, and freezer and work out what meals you can make from the ingredients you already have. To get inventive, you can Google some recipes for inspiration. Once you are done, you then work out the remaining meals for the week and add these to your shopping list. If you only need 3 carrots, don’t buy a bag that will go to waste. This method is not only good for saving money but also preventing the end-of-week waste.

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End-of-year sales

Unless you have items you need to buy and have budgeted for them, I would suggest staying clear of the end-of-year sales. They are like the pre-Christmas sale period but on steroids! If you have prepared money for this earlier they can also be a good place to buy items at great discounts. But only if you need them. If you are in the latter category, my tip would be to take a list and stick to it (like super glue).

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Think outside the box

There are amazing low-cost ways you can spend your Christmas break. Make a list of things you love to do (or loved doing as a child) and would like to try again. For example, bushwalking, a picnic at the local park, reading a book from the library, going to the beach, playing in the snow (depending on where in the world you are living), making popcorn and watching a movie with the family, catching up with friends for a night in and a game of cards, a day spa at home. Get creative and have some fun!

Another way to live within your means is to cut up the plastic once and for all. If you have debt owing, save $500-$1000 in emergency funds and set up a payment plan to pay off each debt from smallest to largest (making sure you meet minimum payments in the meantime). Once you are empowered to live off your earnings with a savings buffer, you will never need credit (debt) cards again.

Inspiration for the New Year

With the www world available at our doorstep, there are many free ways you can connect for inspiration. Follow a blog, podcast, look around on YouTube, take a free course. If you don’t have access to the internet regularly, check out your local library’s finance section or connect with a friend or family member that seem to have their financial situation together to see if they will share their wisdom. We grow by seeking new ideas, new inspiration and new ways of living. Find your financial guru for the New Year!

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More by this author

Julie Barrow

Freelance writer, financial literacy worker and advocate for lifelong learning

Surviving the Post-Christmas Financial Hangover

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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