How to Get Back on Budget After the Holidays

The holidays are officially over. Setting up the Christmas tree and hanging up lights was a fan favorite. The highlight was seeing everyone open presents from Santa. They were delightful, but let's be honest - your budget might be singing a slightly different tune right now.

The post-holiday slump isn't just about being tired from celebrating, it's often a financial one too. Don't worry, Frontier Bank has strategies to getting back to the budget!

Holiday spending has not slowed down:

A recent study revealed that the average American spends a whopping $1,229 during the holidays. Considering those with kids, this number is only higher. No wonder the average American's wallet feels lighter and debt rises. (Source: LendingTree)

You're not alone in this financial conundrum. Millions are navigating the post-holiday financial landscape, and with a few smart strategies, we can all emerge better.

Budgeting Beyond Resolutions:

Forget generic resolutions that fade fast. Let's craft a personalized budget roadmap, a financial GPS guiding you through the year. Take stock of your spending habits this year.

Track those holiday splurges, analyze recurring expenses, and estimate your essential costs like food and transportation. This transparency is key to setting realistic goals that won't evaporate into thin air.

Writing Down Your Goals is Key:

Studies have evidence that 92% of people don't achieve their goals because they don't document them anywhere. The same goes with a budget; speaking about saving money isn't as effective as planning it out. (Source: Inc)

Let's start by taking those spreadsheets and connecting them to actionable goals. Think of them as your financial guidelines, keeping you on track even when it gets difficult. Here are some of our steps to getting back on budget after the holidays:

• Pay Off At Least One Debt: Identify a debt you can confidently eliminate in 2024. Calculate what you need to make it vanish it by year's end, and treat it like an extra monthly bill. To pay off a debt sooner, we recommend increasing your monthly payment for one debt. See if it fits within your budget to make extra payments towards it. Whether it's a larger car loan or a low-balance credit card, every dollar counts. Every paid debt is a massive step towards getting back on budget.

• Subscription Sacrifice: We all have those dormant streaming services like ghosts in the financial machine. Start by auditing your subscriptions one at a time. Many movies and TV shows are on multiple digital streaming services. Review your digital publications and other subscriptions as well. Ruthlessly cancel the unused ones, and watch your budget blossom. You'll be surprised what you've been paying for this whole time.
• Automatic Saving is the Future: One of the easiest ways to grow your savings is to do it automatically. Now, mobile apps exist that can automatically deposit money into investment or savings accounts. Ask your bank if you can direct a specific amount of your paycheck to deposit into a high-yield savings account. Also, ask if your bank offers a retirement savings account and contribute more.
  Negotiate with Lenders: Don't let those credit card companies control your finances. Research lower interest rates and negotiate with lenders. You can consider balance transfer cards. These cards have 0% interest for a certain amount of months.
  We recommend having a clear pay-off strategy to avoid interest. Try these strategies to get closer to financial freedom.
• Use Cash-Back Rewards: If you've been hoarding cash-back rewards, we recommend using those hard-earned rewards. Let's apply your cash-back rewards to your statement balance instead.
  Pay Raise equals Pay Debt: You're likely used to your 2023 budget unless a major life event happened. If you get an annual pay raise, look into what you can do with that extra income. Review your budget and figure out if that extra money can go to that one debt. Remember, the goal is to get at least one major debt paid off by the end of the year.

Bonus Tip: Embrace the Joy of "No"

Remember, saying "no" to unnecessary expenses is an opportunity and not a bad thing. Every "no" to an impulse buy is a "yes" to your future financial success. You're not alone in this post-holiday financial conundrum. Frontier Bank can help you take back control of your budget and finances. We offer support and provide tools to help you achieve your financial goals.

Budgeting isn't about deprivation, it's about empowerment. Take control of your finances and build a secure future. So dig deep into your goals, and start improving your financial well-being.

Reach out to Frontier Bank today.

Tracey Hoefert
Vice President of Retail Banking
traceyh@frontierbank.com