Three tips to help you recover from holiday spending and start the new year right
If you feel as if your money left with the holidays, you’re not alone. Many Americans are dealing with the aftershock of their holiday spending. Here are three tips to help you get your money goals off to a good start in the new year.
Create a budget
Start by creating a budget and be intentional with your spending. Find a budgeting method you like and start putting money aside each month. This could also help you get a head start on holiday expenses for this year.
Snowball your debt
To reduce credit card debt, some financial advisors recommend the “snowball method.” List your total debts in order of smallest to largest and start attacking the smallest first. Apply the smallest debt’s payment, once it’s paid off, to the next debt on your list and continue that. Other advisors advocate paying off your largest debt first for the positive reinforcement it gives you to see your total balance decrease quickly. Whatever method you prefer, be consistent and watch your balances shrink.
Set realistic money goals
To quote Dave Ramsey, “Your money isn’t going to change on its own. You have to tell it what to do.” Write down your specific money goals and place them somewhere you’ll see them daily.