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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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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 January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

More About Thinking Smart

Featured photo credit: Austin Distel via unsplash.com

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