Many of us get so caught up in the holiday madness that we toss our budget aside and fall into what seems to be a never-ending spending cycle. Last year’s report shows about 51% of Americans overspent their budget on holiday gifts and 28% are still paying off holiday debt from the previous year.¹ You don’t have to head into 2020 regretting your year-end splurges. Here are some ways you can get back on track:

 

• Pay off credit card debt. “Plastic is king.” Credit card debt can linger for months, straining your budget and keeping you from reaching your financial goals. Check the interest rates to see which credit card charges the highest APR rate and concentrate on paying that debt off first. Remember, paying more than the minimum is not only good for your credit, but for your overall financial well-being.
• Reconsider your gifting strategy. During the holiday season, it may be hard to resist those sale racks and promotional signs. Reconsider your impulse purchases and return or exchange unnecessary items. Also, if you receive gift cards or cash gifts, consider applying them towards your new budget.
• Revisit your budget and plan ahead. Don’t fall into the same financial traps. It’s in your best interest to set goals at the beginning of each year and learn from your mistakes from the past. A suggestion is to calculate the total you spent this year so that you can take into account how much you’ll need to set aside to prepare for the next holiday season.

 

All life and financial decisions, including holiday splurges, can significantly throw you off course. Let us help you kick 2020 off on the right foot by calling us at 505-883-2630. Together, we’ll review your financial position and solidify a plan that’ll help steer you back inside the lines towards achieving your goals.

 

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¹ https://www.retirementliving.com/2020-401k-contribution-limits