Holidays are the most wonderful time of the year - or the most expensive! With all of the decorations, gifts, and food, expenses can rise quickly, and overspending can easily be done. If you feel that you spent too much over the holidays, it is time to start thinking about what you can do now to get your savings back on track. We are going to share with you a few tips that can help you and your savings recover after overspending during the holidays.  

Evaluate the Damage  

As hard as it may be, the first step to getting your savings back on track after the holidays is to evaluate and assess what damage has been done. Evaluate how much was spent out of savings and investigate any credit cards that were used during the holiday season. This will help you get a better understanding of what you need to do in the future!  

Tighten the Budget 

After you have assessed your spending amounts during the holidays, it is time to start coming up with a plan. Tightening your budget can be the first step in your plan for getting your savings back on track. It is important to evaluate your spending each month and decide where you will make changes going forward.  

Here are a few tips to help with tightening your budget: 

  • Give yourself an allowance to prevent overspending.  
  • Make a list before going shopping so you will only purchase what you need.  
  • Assess your recurring expenses, like subscriptions.  
  • Focus on small changes that can make a big difference.  

Spending Freeze  

Planning a spending freeze can really help you get back on track with your spending habits and help jump-start your savings. Often times we don’t even realize how much we are spending on small or unnecessary purchases each week and a spending freeze will help put your spending habits into perspective.  

Here are a few tips on how to effectively do a spending freeze: 

  • Establish a time frame for your spending freeze, maybe it is two weeks, or it could be a month. Many individuals participate in a “no spend month” after the holiday season.  
  • Plan out the rules. Set rules for your spending freeze and try writing it out so you can hold yourself accountable once you start your spending freeze. Maybe list out what your essentials are that you must purchase and clearly list out what you won’t spend money on.  
  • Make it fun. You can make your spending freeze fun by challenging yourself or others to see who can complete the spending freeze. It doesn’t have to always feel like a punishment and adding a little bit of fun and excitement can help it go by faster.  

Be Consistent and Follow the Plan 

Once you have evaluated all of your spending and your savings, it is time to take action and follow the plan that you have created! These tips can help you get back on track with your savings but only if you follow through with them and do it consistently. Sticking to a tight budget and cutting down on spending can be very difficult but you will see results in your savings if you stay consistent! Utilizing a budgeting worksheet or online budgeting apps and tools can help you track your progress and hold yourself accountable.  

Lastly, it is important to focus on the big picture. Overspending on one holiday season won’t completely ruin your savings forever and you can utilize the tips that we have shared with you to get back on track as soon as possible! Be kind to yourself and know that this is very common. Be confident in yourself that you can get back on track, be patient and stay consistent with your budgeting and spending plans!