The holidays are over and it’s time to start thinking about all the money you spent. There’s no denying the fact that spending money during the holidays can be fun. There’s also no denying the fact that facing the aftermath can be a nightmare. If you overindulged over the holidays, you can get back on your feet again. Here’s how to recover from holiday overspending.
Do a Reality Check
This is the worst part. You’re going to want to sit down and face reality. Grab your receipts, log into your credit card accounts, and see how much you really spent. The average household spends around $1,000 during the holiday season. That’s a lot of money, especially if you didn’t plan ahead.
Okay, now that you know how much damage has been done, you can determine how much money you need to come up with to recover. Until the debt is paid off, there are some things you can definitely live without. Remember, you can do so much for free. You can stay entertained by watching YouTube or other free TV services. You can download free books from Amazon or your library. Also cut back at the grocery store, live off your stockpile, and look for cheaper alternatives for everything from your cell service to car insurance.
Put Extra Money Toward Credit Card Debt
Now that you’ve got some extra money coming in, put it all toward paying off the debt. You want to get this debt knocked out as soon as possible. The last thing you want is to be paying for Christmas for months after it’s over.
Once your debt is paid off, rebuild your savings account. Chances are you blew through that to cover the cost of the holidays. Don’t let your savings account remain empty. Be diligent. Set up an automatic savings account payment so that you treat it like any other bill.
Think About Next Year
Last, but not least, start thinking about next year. Instead of trying to pay for everything at once, look for ways to spread out the cost. You can start picking up gifts when you see great things on clearance. You can also shop after-Christmas sales to save on everything from decorations to wrapping paper.
If you overspent during the holiday season, you need to face reality. Don’t hide your head in the sand. Face it and tackle it. With a bit of hard work, you can recover from holiday overspending.