By Lynesha McElveen
Well now that the Holidays are over, it’s time to assess the damages and make positive changes. Many of us spent too much money and must regain lost ground. The best way to do this is by working on getting our money game up and cutting expenses! Here are some easy tips to help you do that:
1-If you have overspent, don’t compound the problem by convincing yourself to take advantage of sales post holiday sales. Stop right where you are, take some deep breaths, regroup, and assess the damages. Don’t be afraid to see what you’ve created, and don’t avoid the problem. It will only get worse.
2-Buy electronics in early January or in March to avoid price hikes for the Super Bowl. Don’t purchase warranties, because most products have a minimum of 1 year warranty built in to the pricing and most problems with products occur within the first year.
3- If you’re in the market for a car, purchase towards the last few days of the month. As a former sales person, I know that there is tremendous pressure to close out the month well, so you can really negotiate prices then because people need high numbers towards month end.
4-Budget for clothing by shopping post holiday and end of season sales. Also find out when the stores have their best week day sale, when new merchandise arrives, and when the new seasons merchandise will be displayed. This gives you a good idea of when you can find the best sales before the items have been picked over.
5-Take advantage of left over holiday merchandise for next year, i.e. holiday merchandise, cards, decorations, etc. You can always begin shopping for next season early, and save up to 95% off next season’s pricing.
6-Create a plan to pay down holiday and other debt. Start out by paying down the card with the highest interest rate. Once you’ve paid that, attack the next highest rate, and so on, and so forth. Once you get out of debt, commit to not accumulate any new debt you cannot pay off monthly. Maybe even apply for an American Express charge card (green) to force discipline.
7-Set Savings, Spending, and Investment Goals. Create an emergency fund of at least 6 months of expenses. Try to save money wherever you can by cutting expenses. Save any lump sums, tax returns, or unexpected income. Invest at least 10% of income and work your way up to 20%.
8-Adopt a budget and stick with it. You can make changes if you see certain things don’t work, i.e. you budgeted for $150/month in gas, but you spend $225, but also adjust areas where you don’t spend as much, and save.
9-Track your expenses for a week and cut excess expenses. You can do this by saving receipts, writing down all expenses in a notebook, or accurately using your check registry. Once you find areas that are excessive, cut expenses. For example, instead of getting coffee everyday, cut down to 3 days/week.
10-Allow yourself a small treat from time to time to combat feelings of being deprived. It’s OK to get yourself that massage or facial, but save money by going less often, or using a school like the Aveda Institute. Use some of your holiday gift certificates to pay for purchases.
If you adopt these tips, you may be well on your way to “Ballin’ on a Budget!”
