Here are some good new years resolutions to get your finances back on track after the holidays. Maybe you used credit cards and you made your debt situation worse, didn’t save as much during the holidays as you would have liked, or maybe you just went a little over board on the amount you bought for each person.
It is hard to not get caught up in that cycle each year because it always feels so good to give and to make people happy.
But, there are some steps you can take right now to get back on track, and to make a plan to prevent this from happening next year.
1. Make a plan now for next Christmas.
Since you just recently shopped and gave Christmas presents, now is the best time to sit down and write a list of all of the people you will need to buy presents for next Christmas and a budgeted amount for each person.
Once you have this list written out you can total up how much you will need and make a plan to save that total amount of money throughout the year. When it is broken down into smaller steps like this it is easier to reach this Christmas budget goal by the end of the year, and not have to put anything on credit cards. The goal is to only pay cash for EVERYTHING!
2. Make a budget and stick to it.
Everyone really needs to use a budget for their finances, not just for when saving up for Christmas presents or something like that, but for all of your income and expenses. If you can see where your money is going each month it will help you to use that extra money that may be there to pay off your debts or save. It will also help you to see the big picture and how and where you can cut back on things in order to make that extra money be there.
Here are a few links to various Budgeting Software Options:
3. Set yourself some goals for the year.
If you don’t know what you are working towards it is hard to stay motivated and on track all year. So, for example if your goal is to pay off some debt. Then break it down into small manageable chunks and celebrate those successes.
So, if you have $15,000 in debt, but with your current income it isn’t possible to pay all of that off in one year. Then try making $5,000 your goal for the year. So, you would know that each month you have a goal of $416.67 to pay off. This is more attainable and once you are able to reach this goal each month it will motivate you to stay on track.
If you have any great tips you want to share related to this topic, please add them in the comment section below.