3 Ways to Bounce Back From This Year's Holiday Spending
posted on Friday, December 25, 2020 in Financial Tips
Christmas is the time of the year that most people anticipate. There’s always something exciting to look forward to each week—exchanging of gifts, year-end sales, hosting of parties, buying decorations, potlucks, and so on. But, as good as these sound, they can also take a toll on your savings. If you think you’ve done hefty damage to your bank account, here are some ways to help you recover from holiday spending:
Figure Out a Repayment Strategy
Before anything else, it’s best to rip the band-aid off and assess the damage you incurred during the holidays. Once you get that out of the way, it’s time to figure out a repayment strategy that works for you. Write down all your credit card purchases and when they’re due for payment. Then, determine a doable time frame in which you can pay off your balance in time.
Cut Down on Unnecessary Spending
An effective way to recover from holiday spending is by avoiding non-essential buying. Write down everything that you consider as necessities—food allowance, utility bills, rent, gas, etc. This will serve as your cheat sheet for the next few months. The rule is simple but non-negotiable—you are not allowed to spend a single dime on items that are not on the list.
If you've overused your credit card during the holidays, the last thing you’d want is to incur more debt. Unless it’s for an emergency, it’s best to pay off your existing balance first before using your card again.
Plan Ahead and Start Saving for Next Christmas
Once you’ve settled your holiday debt, start saving for next Christmas. You can open an account specifically for this purpose. Set a practical goal for yourself. After that, calculate how much you need to set aside from your monthly income in order to achieve that amount.
Start Saving Early for Next Year!
Do you find yourself overspending during Christmas? At Community 1st Credit Union, we offer solutions so you don’t have to go through this ordeal again! We offer a savings account designed to help our members save in time for the holiday season. If you have questions or concerns regarding our services, contact us or schedule an appointment through our website.