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How to Recover Financially After Overspending During the Holidays

7th Feb, 2018

The holidays are over, the children are back in school and you are back in the office!  Lots of things have changed, like your waistline… but the most important thing, is the size of your wallet. While it was fat and flowing to family, friends and relatives during the holidays; this Njaanuary has taught you, yet again, that you need to learn to control your overspending during the holidays. In order to get out of the woods, you need to both recover the money overspent, and save for the year as well and this is how you should do it:

  1. Develop a plan

Prior to taking any financial action this year, it is important that you have already developed a strategy to get out of debt without forcing you to dip into emergency savings or borrowing money.

  1. Pay off extra when possible

It is never a good idea to ignore your debt as your bills are not going to disappear, and, moreover, you will ruin your credit rating. Do not let your bills get out of control and always ensure you cover at least the minimum payment.

  1. Consolidate your debts

This process of debt-refinancing involves taking out one loan to pay off many others, specifically if you racked up a high amount of consumer debt. With a KCB M-PESA Loan, you can borrow between Ksh 50-1, 000, 000 as well as choose to repay within 1, 2 or 6 months.

  1. Using the 50/50 trick

If you tend to spend a lot and save almost nothing, you should try this convenient trick. It is especially useful whenever you make a purchase that is not necessary, for example, a new pair of earphones. With this trick, you put the same amount of what you spent on your purchase into your savings account. This is a great method of holding yourself accountable for your financial activities, as well as a way to build your savings.

  1. Cash method

Shopping with plastic increases your likelihood of spending more money than when shopping with cash, as evidenced by numerous studies. This is because you cannot see the money literally going away like you do when swiping. In addition, avoid online shopping while undergoing financial recovery, we know it’s therapy but trust us it’ll all pay off.

The holidays may be over, but the stain of overspending is not so easily washed off… If you are asserting that 2018 is your year, then you need to take action and ensure you recover financially.

Dec 20, 2019 Trending

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