CAREER + MONEY

HOW TO RECOVER YOUR FINANCES AFTER SPENDING BIG ON VALENTINE'S

Showing love with gifts to your significant other is great, but if you overspend, you'll have to put some effort to recover financially.

18.02.2022
BY JACKSON KEEFE
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Financial recovery is one of the most challenging situations that one can face. It occurs when the deed has already been done, and the last mistake that one made was overspending on the lavish and festive Valentine's Day.

Even though it's hard to recover from a financial mistake, it can be done. Some people can still stay in love despite their debts.

It's possible that you and your significant other booked a Valentine's Day trip that included a lot of expensive gifts. It's also possible that one ordered the shoes that the spouse has been eyeing. That lavish spending comes at a cost if one initially did not plan a budget.

Worry not. Here are a few tips for you and your significant other to recover from those unwise purchases.

1. Segregate your dinner date funds
One of the first things that you should do is divide the expenses into two batches so that you can track how much each of them was. Differentiate between ordinary food and dinner date funds. Doing this will help you determine how much of a budget you should set aside for next year's festivities.

 
 
 
 
 
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2. Plan the payment of your additional expenses
The next step is to ensure that you have enough money to cover the additional expenses by looking at your income. It's essential to ensure that your income is more significant than your expenses. Doing so will allow you to make monthly payments on your credit card.

3. Consolidate your debts
Even though it's possible to recover from a big expense, many people are scared of starting with the recovery process. This is usually due to the concept of paying down debts.

One of the most important factors that you should consider when it comes to debt consolidation is paying off multiple debts into one account. Doing so will allow you to focus on paying the most important bills to you.

 
 
 
 
 
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4. Do not fall for it twice
One of the most important lessons people tend to learn about financial recovery is to plan ahead. It's also an excellent opportunity to learn how to manage your expenses in the future. Plan for next year now instead of waiting for the inevitable expenses to come up.

5. Save ahead
By carefully analyzing your credit card statements and receipts, you can easily determine how much money you spent on Valentine's Day. It's also important to set a realistic budget for the future.

One of the easiest ways to start saving is by setting aside a certain amount for a specific goal. It can be as simple as a dozen goals or as long as you have a plan in place for next year.



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