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Regain control of your finances after New Year’s overspending

January 15, 2023, 7:16 p.m
2 minutes to read

Follow the rule “Income – Savings = Expense”.

Have you been tempted by the lucrative Christmas discounts and offers and ended up going over your spending limit?

Don’t worry, you are not alone. Your instant gratification was at stake.

Crying over run-out, spilled milk is pointless.

However, the good thing is that you can still regain control of your personal finances.

Read on to learn how.

Find out where you overspent

Your first step should be to evaluate your trades and find out where you went above and beyond your means.

Rate all your payments by cash, UPI and debit or credit cards. Mark them in the table.

It will help you track what products or services you bought that weren’t really necessary and could have been avoided.

Once you’ve assessed your overspending, the next step is to stop.

This may mean cutting back on your restaurant dinners, online shopping on e-commerce platforms, or regular clubs or parties.

Remember, you can still control your spending. Just take things one day at a time.

Only make responsible purchases and avoid causing more problems than required.

Get rid of credit card debt

The next important step is to get rid of your debts.

If you overspend using your credit card thinking you’ll pay it back next month with your monthly income, that’s unhealthy financial behavior.

With lucrative credit card discount offers, people often indulge in overspending and regret it later.

Try to pay off the outstanding balance within the interest-free period to avoid interest charges.

If you don’t have a budget, now is the time to create one.

Transfer the rest to a separate account and use the remaining money only for your necessary expenses.

Make both short-term and long-term budgets.

A mini-budget serves as a buffer to help you get back on track.

A long-term budget helps you plan for your long-term goals.

Follow the rule “Income – Savings = Expenses”.

When you get your next month’s paycheck, follow the formula “Income minus savings equals expenses (Income – Savings = Expenses).”

Set aside the amount you need to save, not the amount you can save.

Then consider the amount you are left with as your actual income.

This psychological hack helps those who lack self-control when it comes to spending.


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