You get used to spending the extra money even when it’s not necessary.
Today I’ll show two ways you can relieve your debt hangover.
1. Halt your Spending binge.
What do you do when you have an alcohol hangover?
Most likely you’ll sleep to get some rest, I know it works for me at least and the worse your hangover the longer your need to sleep.
The same applies to debt; a debt hangover is the result of overspending and living above your means.
If you’re in a hole, stop digging!
This means cutting back overspending like going out every weekend night and avoiding tempting things like credit cards which will cause your spending discipline to falter.
If you’re someone who tends to overuse credit cards, don’t bring them with you when you go out unless you have a specific purchase in mind.
Buy only the items you planned on and put a limit on your credit card.
Otherwise, your debt hangover will only get worse.
If you have only incurred modest debts, cut your spending accordingly. But if, you’re in so much debt that you can hardly have enough money left to make your minimum monthly payments, you’ll need to make cuts that are painful, but absolutely necessary.
You’re only seven steps away from your very own MILLION RAND portfolio
2. Rehydrate your finances with savings.
Once you’ve cut back on overspending and paid down your debt.
Just like dehydration from excessive alcohol can be solved when you rehydrate your body with liquids.
When it comes to debt hangover, you’ll have to rehydrate your finances by starting to put away some cash.
Make sure you save first.
To do this, you must set up a debit order that makes your savings to a separate account automatic.
You see this has two great benefits:
One, you’ll quickly build up a savings that’ll improve your financial health.
And two, the money you save is in a separate account.
By having the money in a separate account where it’s harder to get to, you’ll be less likely to use this money for impulse spending. And that way you’ll be less likely to go into debt.
Overspending is a highway to financial ruin. Understanding the consequences of overspending, and doing something about it, can save you years of heartache and frustration.
So do yourself a favour and avoid the hangover.