3 personal finance tips to help you rebound after extravagant holidays

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How is your new year so far? Are you still struggling to get back on track especially in terms of your personal finance?

For those who have overspent over the costly Christmas holiday, it is surely a challenge to make ends meet especially if you have incurred debts through those impulsive credit card purchases during enticing season sale schemes of retailers.

But as everyone turns over a new leaf, it is advisable to get back on track through observing these three helpful tips that can guide you to attain financial recovery and start saving for the next holiday season.


1. Recap all your expenses before your start.
The most effective way to start is to find out exactly how much you have overspent in the past two months. When you determine the financial gap, it would be easier to set targets as to how much you must save to cover that total cost. You can therefore determine how much you need to save every payday to recover that lost amount in the shortest time possible (and easiest on your budget)

2. Watch your spending and start investing.
Practice financial discipline. At this point, it would not help if you would easily give in to the temptation of enjoying another shopping spree. Most retailers would start announcing clearance or end-of-season sale programs to convince more consumers to drop by and splurge. Have the will power to resist that.

Instead, allocate even a small portion of your regular income into practical investments. One of the personal finance products you can consider is a unit-linked life insurance policy. Such insurance plan divides your investment into two parts: one for life insurance giving you and your loved ones income protection if unexpected occurrences that prevent you from earning come; the other part would be allotted for building wealth, which would yield a significant amount you can withdraw over time.

Fortunately, there are many of such products that are readily available in the market. Among those you can instantly consider is BPI-Philam’s Life Ready Plus, which gives you insurance protection and financial investment at the same time. Ask the insurer’s financial experts in any BPI or BPI Family Savings Bank branch to get you started.

3. Start saving for the next holiday so you won’t fall into the same trap.
If you think it is inevitable to spend during the Christmas season, start saving for that as early as now. One good strategy is to build a holiday fund by saving a little amount every payday or by selling items you own that you don’t actually use. You could be surprised at how much you can come up with by November.

To wrap this up, learn how to properly and effectively budget your money. Stick with a doable scheme that would be easier for you to live by. Be flexible and determined at the same time to attain your personal finance goals.