The holiday season is a time for joy, creating memories, and spending time with loved ones. But the excitement of the holidays can also burn you out and take a bite out of your wallet, which can leave you feeling stressed and financially unsure come January. Whether it be pressure to buy expensive gifts (or gifts for everyone you know), splurging on big gatherings, or covering travel expenses, you might find you’ve overspent or have dug your way into some debt. But take a deep breath—there are several ways you can re-examine your post-holiday finances and do some mitigating.
Prepare for Any New Debt
It’s not uncommon for shoppers to turn to credit card use to pay for holiday gifts, gatherings, and travel. While it may be convenient, it also makes it easy to rack up debt, adding to the “oh no” feelings of dread that arrive post-holiday. The best way to lessen the burden of this new debt is by getting on top of it right away. Take some time to review your new debt load and put together a strategic game plan for paying it off.
It’s important to start early after the holidays, as that aforementioned feeling of dread can cause you to procrastinate (we’ve all been there). But you don’t want to wind up halfway through the year stuck with a high balance and interest payments piling up. Instead, get a jump on it and start your repayment plan as soon as possible, even if it’s a small fraction of what you owe. Having it laid out clearly will help you stick to it.
Set a Short-Term Budget
When the new year hits and the financial stress is knocking, don’t try to get too ahead of yourself. This can often cause us to do nothing at all or become paralyzed by decision making. Starting with short-term goals can make managing your money much less daunting and help you stay on track. Start with the first three months and decide where you absolutely must spend and where you can cut back—what are your essentials versus non-essentials? Creating a realistic and manageable spending plan on a short-term, non-threatening timeline can help you allocate extra funds to pay off debt and build your savings back up. Once the three-month mark hits, evaluate your budget again and see if there are any areas of improvement and/or what’s working well.
Send in Rebates
For large purchases during the holiday season, retailers often provide rebates to customers, meaning you can get a portion of the cash you spent back in your pocket. If you made any break-the-bank purchases like computers, TVs, and other big-ticket electronics, it may have come with a rebate if you bought during the holiday season. Be sure to check—most rebate offers have an expiration date!
Slow Down Your Spending
Truthfully, none of us like the idea of having to alter our lifestyles, but if you went a little too big during the holiday season, you just might have to for a little while. Consider things you do on a regular basis you could cut back on, like going out to dinner instead of cooking at home, online shopping, meeting friends out for expensive get-togethers, etc. This does not mean you need to hole-up in your house, however, just plan a few more budget-friendly activities instead.
It is also helpful to spend strategically when you need to. For example, you can buy groceries or household items in bulk, opt for less expensive brands, and so on.
Talk to a Professional
Listen, financial stress is hard, and you’re not alone. There are endless resources out there for you to take advantage of and help take some weight off your shoulders. Consider speaking with a financial professional if it’s feeling overwhelming, and they can help you set budgets, create payment schedules, set up savings plans, and more. At Republic Bank, your financial confidence is our number one priority, so give us a call at 800-526-9127 to speak to one of our team members today! Plus, you can find more financial tips and best practices here!
