How to Avoid the Christmas Hangover in 2018

Did your Christmas Cheer turn into Christmas Jeer when you saw your credit card or bank statement this month and thought “How am I going to afford it”?

Well, if you want to avoid the New Year’s credit card hangover, then maybe it is time to take one simple set and forget solution now so you can avoid the Christmas Hangover in 2018.

And that simple set and forget solution is to set up an automated savings plan now.

And here is what you need to do today.

1. Open an online bank account that has no fees and a reasonable rate.  There are plenty of comparison sites you can use to search for these such as Finder and Canstar.  If it is with your existing bank you probably can do it all online.
2. Work out how much you spent on presents, entertainment and extra food and drink over Christmas period.  If you are not sure, the average Australian spends about $1,000 each on these items over Christmas.  So for a family maybe set yourself a target of $2,000.
3. Divide the amount you want to spend in Christmas 2018 by the number of pay periods.  If you are paid monthly, I suggest divide by 10.  If you are paid fortnightly, I suggest you divide by 22.  If you are paid weekly, I suggest you divide by 45.
4. Send an email to your pay office asking them to deposit what amount you worked out in Step 3, straight into the bank account you opened in Step 1.

Once you have done this it is set and forget.  Forget that the money is going there during the year so you don’t spend it.

Then at Christmas time take the money out of the bank and put in an envelope.  Every time you spend on presents, entertainment and extra food and drink over Christmas period, pay for it in cash.  This has two benefits.  Firstly we have more emotional attachment to cash then paying with plastic.  So we may think twice about spending that money.  And secondly, you have a de facto budget as once the cash is gone, you should try and stop spending on presents, entertainment and extra food and drink over Christmas period.

So there you have it.

A simple set and forget solution that you can do now so you can avoid the Christmas Hangover in 2018.

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Do you and your family a favour and start taking steps so you can improve the health of Your Wealth and get off the treadmill of working till you drop.

Wayne Wanders

The Wealth Navigator

wayne@thewealthnavigator.com.au

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