Welcome to the new year!
The holiday season has ended, and you are watching your friends and family love on one another enjoying their gifts. Like a good steward, you take time to gather your bills and start creating your 2021 budget only to notice that you spent more than intended during the holidays. You didn’t realize that a few extra gifts here, a gourmet dinner dish there, and leaving the decorative lights on every night would add up so quickly! So what do you do? Put a “Holiday Recovery Plan” in place.
Step #1
Like any other overindulgence situation, the first step is to admit that something went wrong and recognize that action must be taken for permanent change.
Step #2
The second step is to make a list of purchases and situations that took you out of your Holiday Budget. This is important, because you want to keep this list handy next year as a reminder, so you don’t repeat the mistake. If you don’t remember everything, that is ok, however take note in how you feel. If you felt rushed or uneasy at any time, that is good indicator that your soul was resistant to the purchase or situation. If you are a shop-a-holic, all purchases should be delegated to an appropriate responsible adult.
Step #3
The third step is to take your outstanding holiday bills and do the math to determine how long it will take you to pay off the debt. For example, if your light bill is typically $120 per month but now has increased to $500 because of the holiday lighting, it may take up to three months to pay off this balance. Take the amount and divide it by the number of months to pay off ($500 divided by 3 = $167). Place this new amount in your 2021 budget and make the necessary adjustments. Repeat this step for all of your holiday bills. See previous blog articles “Value of A Budget” and “Tips for the Budget” for details.
Step #4
The fourth step is to make payment arrangements to pay off the debt. In the previous example, you would contact the light company and make payment arrangements to pay the calculated $167 over the next three months. When paying down a debt, have a plan and maintain control of the conversation. Don’t be afraid of the company! Stand firm and clearly communicate your position. You set the terms of repayment and follow through. There will only be an issue if you don’t stick to your agreement.
Step #5
The final step is to review the holiday overindulgence challenges and the 2021 household corporation budget with your entire household. Discuss in great detail and create a preliminary Holiday Budget for the new year. See previous blog article “Sticking to a Holiday Budget” for planning tips. If there are sacrifices to be made so that debt can be repaid, everyone should participate. Maintaining a balanced household corporation is a group effort. The head of the household sets the vision and direction, while all others follow through in support. Work together as a team to eliminate and stay out of debt!
DR. GNP
ADVISE | TEACH | GOVERN
jennoa.graham@gmail.com | www.drgnp.com
This was a great read with valuable information. Thank you