Enjoy the Holidays without a Hangover in January

Let’s face it; even though we aren’t willing to reckon it, everyone is a victim of the holidays’ consumerism to a certain extent. The human nature forces us to betray our rational precepts and fall to the immediate pleasure of celebration and festivity. The time arrives when we need to pay the bills and is then when we start to regret the excesses committed and almost always we promise to never put ourselves in the same situation again. This is what I called January’s Hangover. Below I share some useful tips to avoid this undesirable effect. 1. MAKE A BUDGET

The fact that we have some days off or vacation time does not means that our current expenses are put in hold. Some of us are going to receive additional income in form of extra salary, bonus, increase in sales, etc. But we also are going to have additional expenses in parties and gifts among other things. First, you have to know exactly how much will you receive as income from Dec.15 to Jan.15. Then, add it up whatever you will need to pay for your current expenses (Hydro, Phones, Rent or Mortgage, Insurance Premiums, etc.) When you do that, you must include the months of December and January. Finally, subtract the total amount of current expenses from the total income and the result is your net additional income. That means what you really have to enjoy your holidays.

2. PAY YOURSELF FIRST You have worked so hard during 12 months and have complied with all your obligations. You deserve to be rewarded for that. Ideally, you should take between ten and thirty percent (10%-30%) of your net additional income and put it toward your long term savings (RRSP’s for example) or to pay debts that will increase your cash flow in the upcoming year.

3. BE CAUTIOUS WITH YOUR EXPENSES Remember that the best gift isn’t the one that cost more but the one that is given from the heart. A box of homemade cookies baked with an old family recipe is more precious than an expensive box of Swiss chocolates.

4. ENJOY THE HOLIDAYS Since you have now your finances under control and know in advance that you will not have any concerns that will frustrate your beginning of the year, devoted yourself to enjoy, to rest, to express your love to family

and friends. Be happy and sing: “This is the most wonderful time of the year”

Happy Holidays and a New Year full of success! JOIN THE CONVERSATION, Like us on Facebook