Rebuilding After a Financial Setback

So true story, this year I went a little wonky and didn’t set a budget for the holidays. Call it forgetful or just being too excited not to be stuck to a wedding budget, but I went full on Santa Claus and Martha Stewart this Christmas. Between the gifts, potlucks and holiday party’s I did the most. The bigger joke is that I did this all while quietly convincing myself that I wasn’t doing that much damage.

Fast forward to December 31st when it was time to do my budgeting and face the damage.It was at this point that if our credit card statements could have jumped out the screen and slapped me, my inner finance knowledge would have fixed its lips, shook its head and said “mhmmm GOOD FOR YOU.” It seriously sucked to look at what was done. Which led me to these, my top 10 suggestions for rebuilding after holiday setback.

1. Assess your overall situation

First things first, it’s time to look at the situation and come to terms with the damage. Pull up the credit card statements, go over your transaction history and make notes. Whether you over spent your way into debt or deeper into debt now’s the time to acknowledge it and move forward with a plan.

2. Revisit your budget

Dust it off, power up that excel spreadsheet or log onto whatever you use to do your budgeting. Start fresh with a new month and new year! It’s time to plan out your pay schedule down to the last cent. Include all debts and be honest about how willing and committed you are to cleaning up the mess.

3. Create a repayment plan

Some of you may have been smart and preplanned but if you’re like me and stuff just happened this holiday season then you need to figure out how to repay the debt you created. It’s time to Dave Ramsey this situation and line the debts up smallest to largest and attack them in that same way. Make sure these are included in your budget.