The month of January might feel like the longest month of the year to some of us. As the festive season comes to an end, and bills start rolling in, we may need to make some tough financial decisions. Don’t stress, here are a few steps to help you recover after the festive season:  

Take a breath

When we’re stressed, we tend to take shallow breaths. Post-holiday spending can leave you anxious, especially when you have no idea how you’ll make your minimum expenses, let alone repay your debts for the month ahead.  Breathing gives your brain oxygen to help you think, get creative, and solve problems by giving us the time to gather our thoughts.

Take note
Are you using credit to supplement your living expenses? Was spending over the holidays just the tip of the iceberg because your debt has been piling over the past few years? Or perhaps you’re not even sure where your money is going each month? Take time to really think about your current financial situation and how you want to move forward.

Take stock

Write down:

• Your household income (after taxes)
• All your household liabilities (debts like your rent/bond, car repayments, credit cards, personal and payday loans)
• All of your monthly expenses
• Also take stock of your assets; they might provide you with options (e.g., you can sell something for some much-needed cash)
• If you’re not sure what you’re spending every month, review your bank statements and write everything down – do it for a few months and it’ll give you a clearer picture

Take action

• Reduce your monthly spending – bargain hunt, make your own food instead of eating out, shop around for bargains
• If you know you cannot make your payments, the worst thing you could do is nothing. Reach out to your bank, a suitably qualified financial advisor or the NMG SmartAssist Programme on 0800 22226. Don’t let fear stop you from getting help
• A debt counsellor may be suggested to help set up a debt repayment plan, build a budget, and suggest tips to make sticking to your budget easier. The counsellor can also help negotiate a reduced interest rate

Planning is critical when it comes to effective money management. It’s not necessary to feel overwhelmed. Understand your situation and get help by calling the NMG SmartAssist Programme and let one of our financial coaches help you move forward. You’ve got this!