How to Recover From a Financial Hangover After Spending Too Much?
By Nicholas Green
At some point in time or the other, we all have splurged and spent too much on buying things that we don’t really need, to lead a basic lifestyle of comfort and peace.
But, we all do mistakes, and we all must repent for the mistakes, as that’s the law of nature.
And, how gloomy are the days, after you have splurged uncontrollably, and go through the financial hangover phase. It just seems that all the costly purchases or the hefty spending, just doesn’t mean a thing. You feel like you shouldn’t have done this or that. It was just a matter of time, when you went manic and was not able to hold yourself from the urge of doing something, not so great, but one that cost a big chunk of money.
This realization is good. Let it seep into you, and make you strong and mature, so as not to repeat the same event or mistake again.
So, how to get done with this financial hangover then?
Check, was the splurge momentary or is it a consistent habit?
What’s the reason that you have spent too much? Was it just an item from your wishlist, that’s expensive, or is it some polish lifestyle expense?
Habit plays a hidden role in finance. If someone has a binge drinking habit or other addictions, then this is more behavioral, than just a financial issue.
Hence, if your cause for the splurge is buying just an item, (that is clearly a one-time affair), then there’s practically you don’t have to worry much. Like, say, for example, you have got yourself the latest mobile gadget, and spent some thousand dollars on it, even when you very well know that you don’t need pro-level hardware. This type of event is forgivable.
But, say you went to a party with your buddies and spent a hell lot of money on booze and other illicit stuff and activities, then you are in a serious condition, that you must rectify.
That’s because a habit is not easy to let go of, that too if this habit is fuelling a lavish lifestyle that you’ve got inclined to, and that which you can’t afford, given your current state of income.
So, if your splurge is a result of malnurtured habits, then mend your ways!!
Is there any way you can reverse the purchase and minimize the damage?
Yes, this is also an aspect to get done with the financial hangover.
See, whether or not you can reverse a portion or whole of the big transaction. As in the above section, where I gave the example of a mobile gadget, you can easily resell it to potential customers, and get back a significant portion of the lost money.
The same thing gets applied to any other costly object that has a second hand resell value.
Not only this, you can even at times cancel out any expensive deal or subscription, and get back refunds.
You can easily work out a cashback plan if the purchase is related to some physical object. If you think, that you can by any chance get back some or all of your money, then, of course, do that quickly.
Have you got into debt? Pay it fast:
Now, the real deal is here. Did this purchase, shopping, transaction make you land into some big debt amounts?
Well, then you are in some serious mess, I tell you. You should not waste much time and lookout for ways to manage the debt amounts.
If the transactions were done with credit cards, then you can try to settle the debt, and avoid paying the full amount, that too if the debt is greater than your income.
If you are having old credit cards, then you can likely get your accounts settled. Or, you can even try out debt consolidation, and replace the high-interest credit card debt, with a low-interest same amount debt!
Thus learn the art of moderation and get out of debt, before you get drown in them
Build savings to avoid future complications:
Next comes the foolproof prevention of future financial setbacks, or as the topic goes, financial hangover.
You need to build savings and secure your finances.
The practice of saving money makes you responsible, and bring to you the real picture of how much money you truly own.
Plus with ample savings in your bank vault, you won’t have to rely on credit cards and other loan vehicles.
Remember, do mistakes, do repent. But, repent only once!
Save money, control splurging, lead a debt-free lifestyle, and be happy.
About Nicholas Green
I’m in the pursuit of an idyllic life. I’m a husband, father of three daughters, business coach, content creator, and blogger. I interest myself in researching about financial topics and lifestyle subjects.