Recovering from Holiday Cheer - Financial Tips for a Fresh Start!

The holidays are a time for joy and celebration, but let's be honest, they can also leave our wallets feeling a bit lighter than we'd like. I remember when my kids were young, January always felt like a financial hangover. I hadn't planned for holiday expenses and the post-holiday pinch was real. But then I discovered the magic of specifically budgeting for Christmas throughout the year and oh, what a difference it has made! No more January regrets, just a smooth transition into the new year.

If you're feeling the post-holiday pinch, you're definitely not alone. Did you know that 94% of Canadians expect to experience financial stress from the holidays? It's true, according to a recent survey by CPA Canada. But don't worry, it's absolutely possible to regain control of your finances and start the new year on a positive note.  

In this month's newsletter, we'll explore some proven strategies to help you recover from holiday overspending and build a healthier relationship with money. We'll cover everything from:

• tackling debt 

• getting back on track with budgeting

• cultivating a positive money mindset. 

  
  

So grab a cup of something warm (maybe even a caramel drizzle coffee like mine!), settle in, and let's embark on this journey to financial well-being together!

Acknowledge and Address Financial Anxieties:

The first step is to acknowledge any financial anxieties you may be experiencing. Don't ignore your feelings or try to bury them. Instead, take some time to reflect on what's causing you stress and why. Once you've identified the source of your anxiety, you can start to develop a plan to address it.

Create a Debt Repayment Plan:

If you've accumulated debt over the holidays and are wanting to start your debt payoff journey it's important to create a plan to pay it off. Begin by making a list of all your debts, including the interest rates and minimum payments for each. Next, explore different debt repayment strategies. The two most common debt repayment strategies are the snowball method, where you prioritize paying off the smallest debts first, and the avalanche method, where you focus on paying off the debts with the highest interest rates first. In both methods, you reallocate your payments to the remaining debt after paying off each debt. Choose the method that best suits your financial situation and personality. This is an area I can definitely help with! Together, we can uncover which method would work best for you and develop the habits to keep you on track!

Get Back on Track with Budgeting and Saving:

The holidays can disrupt our routines, including our budgeting and saving habits. Now is the time to get back on track. Review your budget and make any necessary adjustments to account for your current financial situation. If you don't have a budget, create one! There are many resources available online and through financial institutions to help you get started. Stay tuned for my March newsletter, where we will dive deep into this topic! Also, revisit your savings goals and automate your savings contributions whenever possible.

• Start planning for next year's holiday spending now. One of the best ways to avoid post-holiday financial stress is to plan. By setting a budget for next year's holiday spending and starting to save now, you can spread out the cost throughout the year and make next Christmas easier on your wallet. Think about how much you spent for 2024 and adjust it from there.

Cultivate a Positive Relationship with Money:

Remember, your relationship with money is an ongoing journey. It's not about perfection, it's about progress. Focus on building healthy habits, such as mindful spending, gratitude for what you have, and regular financial check-ins.

I'll always remember the feeling of accomplishment when I first budgeted enough to cover my credit card bill without dipping into my next paycheck. It was a real turning point in my financial journey, and it solidified the importance of mindful spending and budgeting. Small victories like this can make a big difference in building a healthy relationship with money.

Additional Tips:

• Seek professional help: If you're struggling to manage your finances on your own, don't hesitate to seek help from a financial planner (like me!).

• Practice self-care: Financial stress can take a toll on your mental and physical health. Make sure to prioritize self-care activities, such as exercise, relaxation, and spending time with loved ones.

• Celebrate your successes: Acknowledge and celebrate your financial achievements, no matter how small. This will help you stay motivated and build confidence in your ability to manage your money.

  
  

Remember, you are not alone in this. By taking a mindful and proactive approach, you can overcome financial anxieties and create a healthier, happier relationship with money.

Wishing you a financially prosperous New Year!

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