Shock and Awe
Now you have received the credit cards bills for your lavish spending in December 2016.
Wipe that frown off your face. I have a plan for you. I can show you ways to never ever find yourself in this position again.
Pick up those bills. Open them. Get your calculator and total the amount you spent during the months of November and December for all those gifts you bought. I am sure you purchased something yourself. Because, you felt that you deserved it.
What is the total? I can guess. It runs from $1000.00 to $1500.00. It did not seem like you were spending that much. Did it?. No way would you know. While swiping your credit card the totals leave your mind. You are focus only on the next purchase. Here we are the end of January and now you know.
Let us begin with the way to avoid this from happening again.
Add 10% more to your total. Then take this number and divided by the amount of times you get paid in a year.
Here is an example of someone who spent $1,500 and gets paid bi-weekly.
$1500.00 + 10% for inflation $150.00 it’s a bit high but just incase I prefer to use a 10% increase.
Formula= $1500.00 + $150.00 / by 26 = $63.46.
This is the amount you need to save every payday to enable you to have $1650.00 to spend on Christmas.
If you did not spend that much decrease your amount and follow the very same formula. Perhaps you get paid weekly then you divide by 52.
Next step go to your financial institution and have them set up an automatic transfer to a special savings account the transfer to coincide with your payday.
Naturally, if this amount is too much decrease, but do something to avoid finding yourself in the similar position next January.
Hope this helps.