How to Financially Recover from the Holidays [and Why You Should]
The holidays are officially behind us. While they might have been different this year, one thing seems to remain the same around this season; spending a lot of money!
Between presents for friends and family, decorations, food, events, and everything in between, the holidays are a time of celebration. But, they’re also a time of reaching deep into your wallet.
By the time the new year rolls around, you might be thinking about how you will financially recover.
That’s an excellent place to start; it’s essential to think about financial recovery as soon as possible. The longer you ignore your financial state, the more it could lead to feelings of anxiety or even depression.
How can you financially recover from the holidays, take charge of your money, and find peace of mind as you start the new year?
Make a Strategy
One of the best ways to start your financial recovery is to assess your current financial situation and plan action. Where are you now, and where do you want to be? More importantly, how do you plan on getting there?
Your plan could include cutting out certain monthly expenses (television subscriptions, food delivery, etc.) or paying off credit cards with high-interest rates. Even tiny changes can make a significant difference.
Go On a Financial Diet
Many people make New Year’s resolutions to lose weight and get healthy. You can do the same thing with your finances by going on a “financial diet.”
What does that mean?
Essentially, consider ways to “trim the fat” from your finances. Look at anywhere you might be able to save money so that you can apply that money toward your holiday debt. You might even consider using holiday bonuses from work or other “extras” you received to pay off that debt faster.
Once you’ve paid off that debt, you might realize that you can create a smarter budget. You can then use the money you were putting toward your holiday debt toward other things, like credit cards or personal loans.
Start Saving Now
Though you can use the above strategies to financially recover from the holidays this year, it’s never a bad idea to start thinking about the future, either.
You can avoid a lot of financial turmoil throughout the next holiday season and for years to come by creating a plan to save money now. Whether you open a separate bank account dedicated to “holiday funds” or you merely store away a bit of cash here and there, saving now for the holidays is a great way to avoid the shock of how expensive everything is.
Plus, by saving now, you’re setting yourself a budget for the future. What you have in savings by the time the holiday rolls around is what you’ll spend — nothing more. You’ll be less tempted to go over that budget when you have a concrete number in place.
Struggling to Financially Recover After the Holidays
If you’re still unsure how to financially recover from the holidays, know you’re not alone. So many people struggle with post-holiday debt.
While these tips can help, you might also benefit from individual counseling to better learn how your finances coincide with your mental health. Whether you struggle with spending around the holidays or all year long, it can take a toll on you. Worrying about money can make you feel anxious. Realizing you’re in debt can lead to depression.
Please visit my Individual Counseling page or contact me to set up an appointment and learn more about how to financially recover from the holidays. Remember, you can keep your state of mind healthy throughout the year.