Post Holiday Blues

Christmas is now over and all the presents have been given, the food has been eaten. You saw the joy on the faces of your loved ones as they opened the Christmas presents you gave them and it was wonderful!

Now, however, you may be sitting looking at your credit card bill, wondering how you managed to spend that much. Again. You just couldn't let little Suzie or little Johnny down. (Or maybe Big Suzie or Big Johnny!) So, although you have great Christmas memories, you also have the bills to show it.

Last year after Christmas you said it wouldn't happen again. You were going to budget. You were going to buy on clearance throughout the year. You were going to get those debts paid down and yet, maybe time got away, maybe your mind was on other things. So, what to do now? The first thing to do is to put the whip you have on your back down. Let bygones be bygones. Shame has a way of actually keeping us from change and sometimes, ironically, the more we castigate ourselves the less gets done. 

So, shame aside and let's get to what needs to happen. Depending on your income and outgo, you may need to get a second job for a while and pay debt down. If you are worried about what others may think (and this is what keeps many people from getting their finances in order), remember that you don't need to explain anything to anybody! Or, if you feel a need to explain, just remember that 66% of Americans would struggle to pay for a $1000 emergency. There is no need to feel shame about trying to not be one of those 66%. As a matter of fact, it is a reason to give yourself a good old pat on the back! 

There are other ways to get rid of this debt or any debt. You also need a small emergency fund to start so you don't end up putting money on a credit card when you hadn't intended to. $1000 is a good step for a starter emergency fund. Here are some ideas on getting started on this:

1. If you can't pick up a second job you may just do a side gig for a while. Take the talents you have and do a little side work.

2. Sell an overpriced automobile. Many people have a lot of money in their vehicles. Just think of how freeing it would be to sell your vehicle, take the cash left and buy a vehicle outright. You can get many good running automobiles that are reliable for much less than you may be paying now. 

3. If you have enough cash laying around to refinance your home and you have an older, higher interest rate, now is a great time to refinance. Interest rates are low right now and this can make your monthly payments less. However, you would be best off to keep paying the same amount, if you can. 

4. If you have too much house, the market for selling is really good right now. It's not a great time to buy because the market is very hot. But downsizing right now may be a good option for you depending on your circumstances.

5. Another good way is just plain old tightening your belt. Many times people think they can't tighten it further but usually, that's not the case. What are some ways of tightening your belt? 

• Putting a stop to going out to eat. If you feel you need to because of time constraints, the dollar menu at a fast food place is much more inexpensive than a regular restaurant. Also, skip the drinks and get water. Not only will it help the finances but it will help your health and waistline too. 
• Learn to use a Crockpot. Meals in the crockpot taste wonderful and you can make many frugal meals with a crockpot. 
• Buy chicken thighs, dried beans, potatoes. Skip the steaks, prepackaged meals, and expensive frozen dinners. Learn to cook. Not only will you be saving money, you will be healthier, which will in turn save money on doctor bills.
• Shop once a week or even once a month. The more you go to the store, the more you will spend. 
• Instead of buying fancy gadgets, ask yourself if there is an easier, simpler way to accomplish the same goal. Oftentimes, there is. Think of people in the great depression who used what they had. They had a saying "Use it Up, Wear it Out. Make do, or do Without." They often went without, which is something we are not used to doing in today's time. Our culture tells us we must have all these things but that is why the average family has $16,000 in credit card debt at 16% interest. At the regular 3% minimum payment rate, that's $480.00 per month. If nothing else was purchased, it would take 3.75 years to pay it off. The question is, which person do you want to be? The person who works to be different and is maybe seen sometimes as odd, drinking water at restaurants or working a second job? Or the person who is "average" in America? Personally, I don't want to be "average" when it means giving my money to the rich. Change your Think into a Thunk!
• Stop buying clothes for a while. Ask yourself if you really need that new pair of running shoes when you have 3 pair of somewhat scruffy ones in your closet? Maybe a cleaning rag and some shoe shine will do. If you feel good about it, buy used. Some people can't stomach this, but I almost always buy used. My philosophy is "Let someone else spend $50 on a shirt, wear it once or maybe not at all and then I will pay $4.99 for it-which supports a job for someone else and helps the environment as well". Change your Think into a Thunk.
• Find free entertainment. There are lots of things to do for free, hiking, reading etc. Pro-tip: Shopping is not s free hobby. 
• Cut out cable or netflix or anything you are subscribed to that you don't want or need. 
• Look into your home and auto insurance and cell phone company to see if you can these things cheaper elsewhere.
• Eat your leftovers.
• If you have to buy something, buy used.

Think of the things that you really need to spend money on right now. You need: 1. A roof over your head (electricity etc). 2. Food that sustains you. 3. Transportation to your job. We don't need much more than that.

Once you get some of these basic things down you can get that small emergency fund and get rid of that-on average $16,000 in credit card debt. After that, you can work on the next step. 

So, a summary on changing your Think into a Thunk: 

1. Don't beat yourself up for past mistakes.

2. Look for ways you can change things so you have more money each month-either by earning more or saving more or both.

3. Only spend money on what you really need-Food-Shelter-Transportation. 

4. Save up an emergency fund and pay down debt. 

5. If you find yourself feeling like you are comparing yourself to others you see around you who seem to be spending freely, remember that 78% of people live paycheck to paycheck and the average credit card debt is $16,000 and 16% interest. Now do you want to be average? Do you? Change your Think into a Thunk.