Skip to content

After the holidays we all can relate to the dread of opening a credit card statement and wondering how long it will take you to pay off holiday debt. Here are our best tips to budgeting to recoup from the holidays:

 

Budgeting

Making a budget is probably the hardest step, but also the most rewarding, if done correctly. When you are starting to budget, you will need to first detail a list of your fixed costs – those expenses that you must pay. Fixed costs could include mortgage payments or rent, strata payments (if applicable), property tax payments (if applicable), electricity costs, water costs, internet, and more. After this you will need to determine your variable expenses, or the other main costs you have such as food, entertainment, and daycare.

Once you have set a price tag on all of your fixed costs and variable expenses, it’s time to decide how to manage the budget. The best practice to ensure your budget is executed is with a simple practice of cash in jars. The idea behind money jars is that each is given an item line from your budget – for example one jar will have “food” written on it, another represents “entertainment”, and so on. As you get paid, you withdraw the funds you need to top up the jars to the amount specified on the budget. After this, you have that set amount to spend. Having funds in a jar will make you more aware of expenses because the available funds are consciously in sight.

The problem with budgeting but still utilizing your cards is the ability to overspend and not notice. This is the common issue if, for example, you are using a credit card for points but aren’t keeping track of spending.

 

Pay the high interest debts first

You should always ensure you are paying your minimum payment on all of your debts as required – but where should you put the bulk of the money when budgeting to pay off debt? Always pay off high interest debts first. By paying off the higher balance cards as priority, this will reduce your overall interest costs being charged to you on a monthly basis. As you reduce your credit obligations, more of your money will be paying off the direct principal of the debt instead of just the interest. Once you’ve completed one card, the best practice is to move onto the next highest-interest card.

After the holidays we all can relate to the dread of opening a credit card statement and wondering how long it will take you to pay off holiday debt. Here are our best tips to budgeting to recoup from the holidays:

Talk to your credit providers

Another great simple way to start reducing your debt load would be as simple as trading in the points credit card for the provider’s lowest interest credit card. Another alternative would be to open a Line of Credit (LOC). LOCs are typically known for having higher limits and lower interest rates than most credit cards. Depending on your situation, it might make sense to open an LOC and consolidate multiple high interest credit cards into one lower interest payment that could be more manageable.

Balances on cards

This won’t help you save money as much, but it will help you retain your credit score. Always ensure that when paying down your debts, you pay down to at least to 75% of the balance so your higher limits won’t start to negatively impact your credit score.

Needs over wants

As when we budget, we always have wants as well as our needs. You will need to award yourself when you hit milestones! It can be as simple as once you payoff one of your cards, you get to treat yourself with a dinner or purchase the one shirt you’ve noticed on that store shelf the last month. By rewarding yourself with small tokens, it will keep you motivated and feeling accomplished for being able to get yourself in a better financial situation.

Although budgeting can be hard, tiring and hard to stick to like our new years resolutions – 3 weeks creates a routine, 6 months makes a habit!

26 Comments

  1. Very nice post. I just stumbled upon your weblog and wished to say that I have really enjoyed browsing your blog posts. After all I’ll be subscribing to your feed and I hope you write again very soon!

  2. whoah this weblog is excellent i like reading your articles. Stay up the good work! You understand, a lot of individuals are hunting around for this info, you can aid them greatly.

  3. Great beat ! I would like to apprentice while you amend your site, how can i subscribe for a blog site? The account aided me a acceptable deal. I had been a little bit acquainted of this your broadcast provided bright clear idea

  4. I like this web blog very much, Its a rattling nice office to read and find information. “I’d better get off the phone now, I’ve already told you more than I heard myself.” by Loretta Lockhorn.

  5. I just could not depart your website before suggesting that I actually enjoyed the standard info a person provide for your guests? Is gonna be back regularly in order to investigate cross-check new posts

  6. I like what you guys are up too. Such clever work and reporting! Carry on the excellent works guys I have incorporated you guys to my blogroll. I think it will improve the value of my website 🙂

  7. This is the right website for everyone who would like to understand this topic. You realize so much its almost tough to argue with you (not that I really would want toÖHaHa). You definitely put a new spin on a subject that has been discussed for many years. Excellent stuff, just excellent!

  8. Excellent blog right here! Additionally your website loads up fast!

    What web host are you using? Can I am getting your affiliate hyperlink on your host?
    I want my web site loaded up as quickly as yours lol

    Here is my page – coupon

  9. Hi all, here every one is sharing such familiarity, therefore it’s fastidious to read this web site, and I used to visit this website every
    day.

    Feel free to surf to my page: tracfone coupon

  10. I am an investor of gate io, I have consulted a lot of information, I hope to upgrade my investment strategy with a new model. Your article creation ideas have given me a lot of inspiration, but I still have some doubts. I wonder if you can help me? Thanks.

  11. I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.

  12. I may need your help. I’ve been doing research on gate io recently, and I’ve tried a lot of different things. Later, I read your article, and I think your way of writing has given me some innovative ideas, thank you very much.

  13. Rudy Giuliani, a Trump ally who himself has confronted porn porn huh criminal investigations into his conduct.


Add a Comment

Your email address will not be published. Required fields are marked *

Ready to get a best solution for your business?

Nam sed est et nunc ullamcorper commodo vitae in risus. Suspendisse ac est eget mi fringilla accumsan.