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Did Black Friday put your holiday budget in the red?

The last few days have been serious holiday shopping days and the frenzy of activity could have caused you to lose track of your financial situation.  If you find yourself over your holiday budget don’t worry, there are a few ways to cure the Black Friday financial hangover.
What is a warning sign that your holiday spending might be leading towards trouble?
Without question is not knowing how much you have spent shopping from Black Friday through Cyber Monday. Ignorance is not necessarily bliss in the case of financial matters, especially when it comes to potential overspending, so you need to do a little research.
What are the most important accounts to review?
Start with credit card and store charge balances. It is the credit card and store charges that often are the barometer of a person’s financial situation post shopping.  You do want to also pay attention to your savings and checking balances too. If you have overspent from savings or checking, you might not have the money to pay your monthly bills.
What is the first step towards financial recovery?
Admitting that you have a financial problem and knowing you need to deal with it now. If you have drained your savings and increased your outstanding credit and store charge balances, you might very well have created a pending financial crisis. Don’t wait until after the holidays to deal with it.
Why is dealing with it right now so important?
Waiting only make it worse because it is human nature to spend at Christmas and not admitting you have a financial problem could lead to even more spending making the problem even worse.  Plus, early detection and action can sometimes quickly reduce or eliminate the problem.
How does someone correct this situation?
Freeze the remaining holiday spending and look for ways to find money out of the current budget to reduce the holiday debt that you have already accumulated. The number one goal is to not increase debt or drain your savings any further.  Sometimes the holiday spending isn’t just on gifts, it is all the parties and other events that we attend that have an impact on your financial situation.
What if that isn’t enough to correct the situation?
Take the hard step and think about returning gifts and buying less expensive ones or trimming your gift list this year. And if you have purchased anything for yourself, return it and wait to buy it when you have the savings to make the purchase. Hard choices indeed but that is better than starting January in a financial mess that could take months to correct.  

Posted: 12/1/2017 with 0 comments

Categories: Money, Money Matters, Planning, Spending

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