Ah, the dreaded “C” word: Christmas. Now that November is upon us, we enter the world of mega-purchases and last-minute presents. Welcome to overspending, where even one wrong purchase decision may catapult us into debt.
Maybe it’s time to consider the following money management steps:
Set goals
Let’s take this time to identify our values and what we consider most important in life. So, for example, if your dream is to travel the world, a goal may be to first build up your savings.
Track expenses
It might be annoying to jot down purchases in a little notebook, but it’s worth it to see just how many vanilla soy lattes have been purchased in the past three days. Expense tracking reveals those little habits that slowly chip away at the money supply.
Separate needs from wants
We want the fancy camera or new smartphone, but sometimes saving for rainy days is more rewarding than impulsive retail therapy.
Make a budget
Nobody panic: budgeting doesn’t have to mean living off ramen noodles and baby spinach, or saying adios to your amigos. A proper budget is simply a guide to help achieve goals.
Stick to the plan
Money management is a lot like breaking a habit. Sometimes we adopt new customs and abandon old patterns. Other times we falter and the commitment fades. Just remember: if the plan crumbles, it’s okay to repeat the first step of setting your goals.