The holidays can be a time of joy, family, and giving, but all too often we can find ourselves feeling overwhelmed and stressed out about the amount of money we spent. Whether you’ve gone a little overboard with gifts or splurged on a few too many festive dinners, recovering from post-holiday spending can be a difficult task. But don’t worry, you’re not alone. This ultimate guide to recovering from holiday debt offers tips, tricks, and strategies to help you get back on track financially and get back to enjoying the holidays. From creating a budget to setting financial goals, this guide will have you feeling more in control of your finances in no time. So let’s get started on the road to financial recovery.
1. Evaluate and Cut Out Unnecessary Expenses
The best way to start recovering from holiday debt is to evaluate and cut out unnecessary expenses. Start by making a list of all your expenses, large and small. Next, create a list of all your income sources, again, large and small. Then, compare the two lists and see what you can do to reduce your monthly expenses. Wherever you can cut back, do it! It is best to save as much as you can while you are in a good financial position. Reducing your expenses will help you prepare for any unexpected costs that come up and will put you in a financially stronger position when unexpected expenses arise. So, examine all areas of your spending, from groceries to gas and entertainment, and look for ways to cut back. Wherever you can, try to reduce your spending as much as you can, but be careful not to go too extreme as that can harm your quality of life.
2. Say No to Spending for 1 Month
If you find yourself way over your head with debt, you may want to consider taking a “no spending” month. This is a drastic step, but it can be highly effective if you’re truly serious about getting back on track with your finances. During this month, you do not spend any money, with the exception of any absolute essentials you may need to survive. So no buying clothes, no eating out, no going to the movies, and so on. Doing this for a month will allow you to save up a large amount of money and get your finances back in order quickly. This is a very extreme measure, so you may want to try one or two of the other methods listed before doing this. But if you’re desperate and need to get your finances in order quickly, this may be the best option for you.
3. Use Your Tax Return Wisely
If you’re lucky enough to have a large tax return coming your way, you may want to consider saving it up until you have enough to replace everything you spent during the holidays. If you have the willpower, this may be the best option for you as it will get you back in the black as quickly as possible. This is a good option if you’re not in desperate need of a certain amount of money right away. However, if you find yourself in a situation where you desperately need some cash, don’t wait for a tax return. Instead, take out a loan or use a credit card to get fast cash. You’ll want to pay off that loan as quickly as possible to avoid incurring excessive interest payments. Using a credit card may seem like a quick and easy way to get funds, but it can cause significant long-term damage to your finances if you’re not careful.
4. Get Fast Cash if You Need It
If you find yourself in a situation where you urgently need to get some cash, don’t wait for a tax return or save up enough to make up for your spending. Instead, take out a short-term loan or consider using a credit card to get fast cash. It is important to remember that credit cards are not free money. They are a loan that you are expected to pay back with interest. Credit cards have really high interest rates, so be very careful if you decide to use one to get fast cash. You’ll want to try and pay it off as quickly as possible to avoid incurring excessive interest charges. Getting fast cash is not a long-term solution, but it is okay to use if you need to in order to get through a tough month. Just try to make sure you pay it off quickly to avoid getting into debt.
5. Already Start Saving-up for Next Holiday Season
If you’ve overspent this holiday season, you may not want to wait until the next holiday season to get yourself back on track. Instead, start saving-up for the next holiday season right now. Even if you only start saving a few dollars a week, you will be surprised at how quickly the money adds up. If you’re really serious about getting back on track quickly, you may want to consider saving up enough money to make up for your overspending during this holiday season. This is a very extreme measure, so you may want to try some of the other options listed before you decide to do this. But if you’re desperate and need to get your finances in order quickly, this may be the best option for you.
6. Be Realistic About Your Budget
If you’re trying to get your finances in order, you may want to consider creating a budget. While creating a budget may seem like a daunting task, it is actually not as hard as many people think it is. The first thing you need to do is list all of your income sources. Next, you need to make a list of all your expenses, large and small. Then, you need to go through each expense and decide if it is necessary. If it is a necessary expense, you need to decide if there is a way to reduce the expense. If it is not a necessary expense, you need to decide if you can get rid of that expense entirely or if you can cut back on it somewhat. If you can’t cut back on an expense at all, you may want to consider getting rid of the expense entirely.
7. Set Benchmarks and Reward Yourself!
One of the best ways to stay motivated and positive about your finances is to set milestones and reward yourself for achieving them. For example, you can set a milestone of paying off all your credit card debt by the end of the year. Once you reach that milestone, you can reward yourself by splurging on something nice, or you can also use that money to pay off more of your debt. You can set as many milestones as you like, and they can be as big or small as you want. The point is to celebrate your successes and keep yourself motivated. This will help you stay positive and keep your spirits high as you work towards getting your finances in order. And, who knows, once you’ve reached all your milestones, you may even have enough money to throw yourself a party!
8. Download Wagetap Today!
Wagetap is one of the leading wage advance apps in Australia designed to give you access to your pay early and help you pay your bills on time. It is one of the best ways to start recovering from holiday debt. Now that you know all about recovering from post-holiday spending, are you ready to get started? With these tips, tricks, and strategies, you’ll be well on your way to getting your finances back on track in no time. Don’t wait any longer. Start recovering from post-holiday spending today!
For additional help in improving your spending habits, you can always download Wagetap. It is a leading wage advance and bill split app that allows you to access your pay early. Emergencies can always happen and Wagetap can help you handle life's unexpected expenses.