The word “damage” implies that something has been harmed, broken, or fractured somehow. Assessing the damage means taking a personal financial inventory. It means taking stock of where you are and comparing that to where you would like to be. If you have overspent, by how much? If you are still in the black, do you need to be careful? If you have remaining bills and other financial needs with no means of payment the damages are substantial. Only you know exactly what your financial need is and whether or not you are able to meet it.
2. Pay off all debts. …
If the damages are not too severe, you still have some money left. Stop spending on non-essentials now and begin to focus exclusively on the things you need. Food, gas, and bills immediately come to mind as they are the most commonly shared essentials for most people. You may have others such as childcare and public transportation expenses that you can not live without. These should be your first priority at the moment. Hold tightly to every dollar and dime and don’t let another one go until your basic needs are taken care of.
3. Find other sources of income. …
The average millionaire has more than seven steams of income while the average middle class individual has only one or two. Tap in to your unused gifts and talents! Do you have knowledge that others could benefit and take value from? Sell it! Can you provide a service that would make someone else’s life easier? Get paid for it! There are innumerable ways to generate new revenue streams in your personal and professional life. Decide what it is you like to do and find a way to get paid for it.
4. Cut back on other unnecessary expenses. …
If you are not living on a budget that stops NOW. You will find it nearly impossible to control and manage your finances successfully if you don’t have a good idea what you have coming in and where it is going. No need for alarm. The term “budget” for some people carries with it a connotation of minimalism or lacking. However, this is not at all the intent here. Having a budget is simply about knowing what you have coming in and being intentional about how you let it go. Make a plan. Decide what you need and want to accomplish with your money. If you want to save it…fine. If you want to travel…fine. If you want to blow every red cent on snickers and shrimp…FINE. Just be sure you are in control of how your money leaves you…and not the other way around.
5. Save up for the next holidays….
This final tip may not help you right now. But, the definition of insanity is doing the same thing and expecting different results. Begin now to put a small percentage of your income away for the next holiday season. Yes, you will be tempted to spend it or borrow from it, but don’t! You will thank yourself this time next year when you are walking into a New Year free and clear without the burden of trying to recover from a season of over spending and maxed out credit cards.
