A Financial Diet: Tips for Budgeting After the Holidays

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Tips for Budgeting After the Holidays

The post-holiday season can be a chance to reset. While some people may focus on physical health, it is also important to tend to your financial health by budgeting after the holidays. As you start the new year, learning tips for budgeting after the holidays to establish a financial diet could be the key to getting fiscally fit.

At Camino Federal Credit Union, we have provided Montebello with financial products and guidance tailored to each member’s needs and situation since 1941. We partner with each member to help them achieve financial success, whatever that looks like for you. Explore tips for post-holiday budgeting in our blog:

How Do I Recover from Holiday Spending? Tips for Budgeting After the Holidays

To start this year on the right financial foot, there are several helpful tips for budgeting after the holidays for you to consider. From assessing your situation to using products like debt consolidation loans, here are some strategies that can help. 

Assess Your Situation

Before you can start budgeting after the holidays, you must know where you stand. The holiday season could often be a blur with a flurry of expenses that are hard to track. 

Take necessities like rent, utilities, food, and gas into consideration. This is also the beginning of the year, so we advise evaluating your monthly income and short-term and long-term financial goals.

Don’t forget to set a target for when you’d like to pay off your debt. By assessing your situation, you will ensure that your budget aligns with your goals and needs. 

  • Amounts
  • Payment due dates
  • Minimum payment amounts
  • Interest rates and other fees

Review, Redeem, and Return Items

Effective budgeting after the holidays can mean taking advantage of every savings opportunity. For example, if you used a cash-back rewards card for holiday expenses, redeem the perks you earned. 

We also recommend looking at the gifts you received or those you purchased and held onto and determining what you will keep, exchange, and return, and don’t miss the return window. Missing out on this window could mean leaving money on the table. 

Create a Post-Holiday Budget and Stick to It

The next tip is to plan for budgeting after the holidays by creating a post-holiday strategy and sticking to it. Start by giving yourself a monthly allowance.

Avoid the temptation of post-holiday deals as much as possible. This will go a long way in avoiding using credit cards, racking up more debt, and overextending your budget. Take advantage of things like discounts and coupons. 

Still, realistically, you can’t eliminate all spending. Give yourself some breathing room, determine a set amount for miscellaneous purchases, and stick to it. Also, you could use tax returns and holiday bonuses wisely and start building an emergency savings fund. 

Cut Back on Unnecessary Expenses

Cutting back on unnecessary expenses is one of the most helpful tips for budgeting after the holidays. Evaluate your spending habits and identify areas you can cut back on. Every little bit helps, so anywhere you can trim your budget is great. 

One of the first places to start when determining where you can cut back on expenses is bank and credit card statements. Ways to cut back on this spending include:

  • Eating out less 
  • Cutting your grocery bill
  • Canceling subscriptions you don’t use
  • Finding ways to save on your monthly bills

A no-spend month could be a great way to right the financial ship. Also called a financial fast, this details committing to a few weeks of as few purchases as possible and putting the extra cash toward credit card bills or building an emergency fund.

Transfer Your Credit Card Balances

 If you are carrying holiday debt across multiple credit cards specifically, you can consolidate those balances and possibly save on interest by getting a balance transfer card. 

This is especially important because credit card debt is one of the biggest sources of high-interest debt after the holidays. 

If you carry multiple balances from month to month, transferring your balances to one credit card could help reduce debt by enabling you to pay down your balances.

Often, some credit cards offer a period where the interest rates are 0%, resulting in savings. 

Camino Credit Cards with Lower Rates

Plan for the Future

Once you have put yourself back on track financially, it is crucial to maintain your financial health. We advise setting financial goals for yourself and creating plans to achieve them. 

Do you want to save for a down payment on a house? Are you more interested in building an emergency fund for added financial security? Or is paying off all your debts more important? Planning for the future will prepare you to avoid financial pitfalls.  

Call Us to Learn More About How We Can Help With More Tips for Budgeting After the Holidays with Personal Loans

For more information about our personal loans for debt consolidation, other tips for budgeting after the holidays, and how we can help put you on track to a bright financial future, visit us at caminofcu.org or call us at 800-835-3400. Give yourself the gift you deserve this holiday season of renewed financial health by visiting our Contact Us page.