How to make a financial recovery after summer vacations?

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Source zena.hr, 10. 08. 2010.
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Many would burst into tears over the situation on their own bank account and credit limits on credit cards, after they return from summer vacation. A few days on holidays and it seems that money is simply gone, and the best part is that you don’t even know where to.

Then, a reality-check – a meager salary that does not seem to come is not even enough to cover for your negative bank account let alone for something else; it is time to take the matter into your own hands.

Here are a couple tips how to exit the financial crisis, after you have emptied your pockets on summer vacations.

How much have you spent?

What we must first point out is never to think about covering negative account with another loan or credit card debt, or even worse to take a loan to cover for another loan. To put it simply: The cure is worse than the disease, not to mention huge interest rates that you will give to banks.

What is crucial now is to stop spending more than you earn.

But let’s go back to the vacation expenses. You paid for travel, accommodation, food, drink, restaurants, shopping, tickets, tours and all the possible incidental expenses. What you must do is to compile a detailed list of costs associated with the vacations. Calculate how much you spent. When you get at least an approximate calculation, do not despair. This money is gone and cannot be returned. One part are the planned costs, which is normal, but certainly there is money spend there on luxury things that you could do without. The next step is to determine how much you have exceeded the budget.

Doing your own accounting

Once you get the calculations, put on the paper costs for the current month such as fuel, food, utilities, rent, loans ... Then you'll have clear insight in your bank accounts and credit cards.

Get sheets of paper for the next six months, and write on them costs for that period. Every sheet is one month. The exaggerated money you spend on summer vacations, you will pay off little by little in those next 6 months.
After comparing monthly income and expenses you have to make up for, you will have to draw the line somewhere and let’s say cut on your monthly expense of fuel, clothes, outings, certainly no more luxury items for the pay-off the period .

You might find this to be a mere survival, well it is. Unfortunately, nobody forced you to go overboard during the vacations. After all it is better to do it this way, then having anything to do with banks that are only going to rip you off, the money you could certainly use for something else.

How to save up ?

Keep track of your receipts. At the end of a month, you will know exactly how much you have spent. Continue keeping record of all of your expenses, and it is sure that your expenses will go down month after month, and in the end you will start doing just fine.

You can be happy without a lot of things without feeling deprived. Maybe many will think: what do I work for if I cannot spend money. Well that is all good and well if you have any money to spend. But remember every cent spent more than your salary is, it is not your money any more, it is bank’s money.

Stop overspending, and start living within your means. Turn to things that are really important, and that you do not need money for - family, friends, exercise, healthy diet, meditation, reading, making love ...