With summer finally on its way and the weather promising to brighten up it can be difficult trying to focus on finances. With many of us waiting eagerly to attend those holidays we booked back in January, it can be easy to forget all about our finances. If you can sort your finances out after a holiday, then you will have more money to splurge on your next one. Although if you are finding it difficult. If you have been on holiday and your bank account is feeling a little sensitive here are a few handy tips that could help bring your financial situation back to the positive.
Devise a Plan
If you have a holiday booked, set an amount of money you are going to take with you and only spend that money. If you have a set amount before you go away, when you come back you won’t be out of pocket- simpler yet effective.
Budget & Track
Anyone who is trying to be careful with money will dread the word budget. However to avoid repeating the endless cycle of debt, putting a realistic budget in place is essential. After your holiday, as the months go on try and track your progress and your expenses. If you start to track your spending it will help you understand where you are spending your money and how much of it. That way you can put a stop to all the unnecessary spending.
Pay off Debt
When it comes to paying debt off it is important for it to be controlled, everyone at some point has accumulated debt over the years but if you deal with it sufficiently it won’t spiral out of control. Try to repay the debt with the highest interest first, then focus on paying as much debt off as you can each month.
If you are truly dedicated to stabling your finances after a holiday, this trick can come in handy if you spend often and save little. Whenever you make a purchase that is non-essential put the same amount of what you have spent into your savings account. This way you get into the mentality that you should spend less and save as much as you can.
Think Cash not Card
There have been various studies that show when a person shops with their cards they are likely to spend more, as giving away cash is far more painful. If you can, when it comes to your budget draw out the designated amount of cash you aim to spend that week, as you will be less inclined to spend, giving your finances a chance to become stable.
After you feel like your finances are finally getting back on track, an easy way to prevent financially instability, is to prepare. If you are already itching to book another holiday, before you do open a savings account specifically for your next holiday. When you create your budget, figure out how much you can afford to put away each month and then automatically transfer it when you get paid. As that way you won’t even miss the money, and the balance will add up over the year, then you can begin to plan your next holiday destination.