Financial Hangover Cures

Tis the season to be jolly, that’s for sure. A heavy schedule of office parties, Christmas catch-ups and end of year celebrations mean there’s plenty of “being jolly” going on. There’s a reason we call this the silly season – people go out and act all silly. What does that even mean? Well, the word silly is defined as “having or showing a lack of common sense or judgment.” Whilst a headache the next morning is a relatively easy fix, there’s a different kind of hangover I want to help you with.

Some of you will suffer from overindulging while others will have a throbbing head from getting on the hard stuff. “It’s Christmas!” I hear you cry, as you rush with reckless abandon toward some kind of carry on you would never normally consider. This will undoubtedly lead to a long-term headache that results from your short-term reckless fun. That’s right, I’m talking about Christmas spending.

The easiest way to cure a hangover is, of course, to avoid the cause of it. Moderation and wise choices go a long way toward avoiding the throbbing head and nausea that can remind you of the poor choices of the night before. So if you haven’t already been sucked in to the gravitational pull of the silly season you can make a conscious choice to avoid it. Pull back; decide on your personal limits and exercise self control to make sure you honour those boundaries. And never let someone else encourage you into something you’ve decided to avoid.

What does that look like with your financial spending this holiday season? Well, setting limits and planning well would be a good start to avoid overindulging. Lack of planning often leads to impulse buying, which almost always leads to overspending. But seriously, who prepares for Christmas? It surprises me how many people get shocked when Christmas appears on the calendar and they realise they need to go gift shopping. Ummm, don’t we remember this happening last year (and the year before, and the year before…?

Hitting the hard stuff with your money is a sure way to end up with a long-term financial headache. I see all kinds of people who shrug their shoulders, resign themselves to the silly season and let go of common sense. They hit the hard stuff they never normally touch and wonder why it hurts the next morning. This hard stuff I refer to is how I describe using credit cards and finance companies to fund your Christmas and summer holiday. The laughter and good times will soon morph into a throbbing bank account, that’s for sure. So don’t do it!

And what will you do if your momentary abandonment of common sense and good judgment lead you to a decision that has massive implications? You may not end up pregnant or needing a dose of penicillin, but that car or house you purchase could be featuring on your list of bills to pay for many, many years.

I guess the best way to cure a hangover is to choose behaviour that avoids it.