How to recover from Easter expenses

For many people who are not so planned, Easter, as well as holidays, add unexpected expenses that in some cases only break the budget, but in others create a deficit that is difficult to overcome. Here’s how to get back into financial balance in five steps.

First, organize your accounts. But do not organize them in your mind, take a pencil and paper and write down all the expenses generated and the extra debts that you assumed during these days. Also identify in this balance your income and fixed expenses and identify the amount of the deficit. You need to have a clear picture of your finances to be able to deal with it successfully.

Second, identify priorities. After you are clear about your expenses, debts, income and the level of the deficit, it is important that you make a quick calculation of which are the priority payments, that is, those that cannot wait or those that generate interest that will increase your debt.

Third, you identify your fixed and variable expenses. Fixed expenses are those that you must do fortnightly or monthly, such as paying services, rent, electric bill, telephone bill, etc. It is important that these are identified and that you also list the variable expenses, which are what we incur on the day on a daily basis, without being defined, what could be called “unforeseen events”, but which we more or less know what we do on a daily basis.

By doing this you can visualize how much money you can dedicate to pay off debts or reduce the deficit you have incurred and thus start your path towards financial balance.

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Fourth, identify how to reduce expenses. It is healthy to always be aware of the need to reduce expenses, even if we are not in deficit, since this is the only way to save and saving together with investment is the unequivocal way to achieve economic bonanza, but also, when you have made expenses extra or unplanned it is mandatory to reduce unnecessary expenses to return to financial balance.

Finally, make a plan. With all of the above clear, you just need to have a clear plan and follow it to the letter. It is very difficult to get to a place if you do not know where you are going, set achievable goals and define the route.

The first step to clean up your finances is to know what you want to achieve and identify the way to do it, prioritize and execute, even if you go step by step.

Remember that after the excesses comes the sacrifice, reduce your expenses to the maximum and make the recovery plan, before the next “economic contempt” comes.

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