The holidays are wonderful for the spirit and we love spending time with the family. But we often wake up in January with a terrible financial hangover to realize that we spent too much, and this often means we end up in debt. It is possible to regain control, reduce debt and, most importantly, prevent it from happening to you again for the holidays that come this end of the year. Of course, you should get the support of all the members of your family, because if not, the complaints about the budget cuts will be overwhelming.
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To recover your finances after the Christmas debacle, it is important to have a good plan, be willing to make an effort and, above all, be as disciplined as possible. Do not panic! It is not that difficult. In fact, it can even be easier than losing those pounds that we pack on from the parties during the holiday season.
What's more, it is possible that this is the last January that you go through the unpleasant experience of feeling that you carried away with the expenses of the holiday festivities and that January is a month of diets, not just food, but also budget. Take note and get to work!
Take a good look at your financial situation.
You might be in a better place than you think, but if not, at least then you will have a clear idea of how much you owe and what you need to do to stop being in the red.
Make a strict budget.
Think of controlling your spending the same way you would control your eating when you're on a diet. In fact, in January we might all be on a spending and food diet at the same time.
Find out how your credit is doing.
If you're really short of money, using your credit cards sparingly in January could be a temporary fix. But you need to know what your credit score is before asking for more credit or spending more.
File your taxes as soon as possible.
The faster you file them, the faster you will receive a refund from the government if you overpaid. If that is your case, you can have extra money to compensate for Christmas expenses.
Avoid the January sales.
Besides food, the only thing I buy in January are the Christmas ornaments that are reduced by 90% and they will serve me for next year. Don't fall into the trap of spending even more.
Sell the things you don't use or the gifts you didn't like.
Believe it or not, used clothes and accessories can be worth quite a bit. As scary as it may seem, they're worth even more if they have designer or name-brand labels. Nowadays, there are many websites and Facebook groups that allow you to sell just about anything.
Get serious about coupons.
It's amazing how much you can save if you decide to take advantage of the discount codes offered by stores and manufacturers. Here are two blogs where you can get many: Ahorros para mamá and Mamacita la cuponera.
Set up automatic deductions from your bank account.
On your bank's website you can determine in advance how much you want to set aside to save and when to pay each bill. Take advantage of what technology has to offer.
Cook at home and avoid eating out.
You probably have no idea of how much you and your family spend at restaurants, no matter how cheap they are, but I assure you that it is more than you imagine.
Get rid of any unnecessary bills.
If your family barely watches regular TV, get rid of your cable service for a month and see what happens. If you have a contract, try switching to the minimum service. With streaming services, think about sharing them with another family. Try to use more public transportation and stop shopping online. You will be surprised how much you will save.
Take advantage of apps that help you manage your expenses.
These apps give you the tools you need so you know how much you spend and on what.
Once you recover, start saving for your December expenses.
If you save a little every month, by Christmas 2021 you will not have to be stressed and your January 2022 will be free of this kind of stress. It's worth it!
Teach your kids how to save and ask them to help you not spend so much money.
They will help you not to take out your wallet every time you feel like it. As you know, they love to tell us what to do and not do.
Have a family meeting to explain what everyone needs to do.
Even the little ones can understand the need to tighten their financial belts. The important thing is that you use age-appropriate words.
Subscribe to get sales alerts from your favorite stores.
Although for many they are temptation, they can also help you see when the things you need are cheaper.
Try to use cash and not credit.
It is much easier to see how much you spend when the money is physically disappearing from the wallet.
Don't forget about returns.
If you do not like something you bought, or realize you spent too much on something, make sure you return it.
Set monthly prizes.
It may be buying yourself something for a specific amount, or having a special family experience, but an incentive always helps with discipline.
Ask yourself what money means to you and your partner.
There are people who do not see it only as a tool to acquire things, but to give themselves rewards, as a symbol of power, or to compensate for the lack of self-confidence. If you identify it, it will be easier to have it under control.
Shop your closet.
If you organize your wardrobe, you will find clothes that have not been worn for a long time. Do the same with the kids' toys.
