Personal Finance

How to Recover Your Finances After the Summer Holidays?

How to recover your finances after the summer holidays

The long-awaited summer is that time of year when we take a well-deserved vacation, disconnect from routine and relax to enjoy family and friends. We definitely make the most of our free time, whether it is to do different activities or to go on a cruise, a circuit around Europe, etc.

We know that vacations always involve an expense even when you have planned your budget well. In addition, it is well known that in high season the prices of some services are higher than normal and this has probably taken you out of the balance.

1. Check what your expenses

It is possible that these were higher than planned, even if you spent a certain amount to give yourself some luxuries. Surely, at that moment you could not resist such pleasure thinking that it would not affect you and it is now that you see the consequences.

2. Organize a post-holiday budget

This will be very useful because you will define your income and debts, therefore, you will be able to know how much you have to stop spending to recover your finances.

3. Control your expenses

During the vacations the main thing is to pamper ourselves, but the return to reality forces us to abstain from certain unnecessary tastes and even make some sacrifices.

If you ate in restaurants in all that time, then now do the super (looking for the lowest prices) and prepare your food. Don’t buy those shoes that you don’t need at the moment or spend in that Starbucks® cafe every day, don’t be a victim of the famous “ant expenses” that, although they are small, consume your money without you noticing. Think twice before spending on something unnecessary.

4. Avoid using your credit cards

While you’re recovering, I suggest you pay for your purchases with cash or a debit card, so it will be easier for you to keep track of all your expenses. To avoid falling into temptation, a good option is to hide your cards; by doing so, you will ensure that you do not increase your debt.

5. Seek new income

If you are having difficulty getting out of your financial burden, then it might be worth looking for new possibilities to make money such as some extra weekend work or starting a new project that will give you other income. There are many possibilities to get more money, but don’t borrow because you could get into debt again and it would be a cycle that would be difficult to get out of.

6. Save

Don’t let this inconvenience stop you from continuing to save, meet your financial goals. You can recover by saving part of your salary, of course this must be within your means.

And be careful, if you plan to go on vacation next season, I suggest you save little by little. At this point, keep in mind that in the low season everything is much cheaper (plane tickets, lodging and services at the destination). Also, you can take advantage of the season offers.

About the author

Frank Ramos

Frank Ramos

Hello, I am a savings economist at GrayAction and an expert in personal finance. I hold a master's degree in economics from Stockholm University. I hope you will enjoy reading my articles on finance categories on the site.

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