The holiday season is wrapping up and you may be facing some financial stress, but don’t let it follow you into the new year. Here are some tips and tricks to get you back on track financially in 2022 and prevent you from overspending when the holidays roll around again next year.
Before jumping into the new year, it’s important to examine your entire financial situation. You can start by making a list of all of your debts, payment due dates, and the timeframe in which you would like to pay off your debt. Familiarize yourself with your monthly budget and your short and long-term financial goals.
Now dive deeper into your spending habits from this past holiday season. Think about what you spent money on, whether it was gifts for loved ones, new Christmas decorations, festive outfits, or holiday snacks and drinks, and add it all up. Were all of these additional expenses really worth the cost? If you think you can cut back somewhere, take a note and refer back to it next year so you don’t make the same mistakes twice.
It’s time to stop spending on non-essential items. It may sound simple, but limiting unnecessary spending will help you financially recover and catch up on any extra debt you added during the holiday season. A little savings can add up in no time. Here's one easy way to save -- try skipping your favorite coffee house and make your morning cup of joe at home. Your bank account will thank you in no time.
Take full advantage of holiday bonuses by using the extra income to help pay down any debt you may have, get your budget goals back on track, or set it aside in a rainy day fund. Resist the urge to spend this money on non-essential items. Try not to view bonuses as “free” money to spend however you please. Instead, use bonuses wisely.
It’s never too early to start saving money for next year! Open a separate bank account dedicated to the 2022 holiday season and direct a small portion of each paycheck there. When the time comes to start your holiday shopping, you’ll be prepared! Doing so will allow you to spread purchases over the course of the whole year instead of spending all at once next holiday season.
We understand with a new year comes new financial goals, and our team is prepared to be by your side every step of the way. For additional assistance with tracking your spending, reach out to your relationship banker or use our online and app banking tools.