Now that the holiday is over, the excitement is fizzling out and so are many people’s pockets. More often than not, we become spendthrifts during the holiday seasons (especially Christmas). Sometimes, this does not happen deliberately since more family members around simply mean extra expenses. Hence, how to save money after the holiday season is a much-needed conversation.
It is advisable to plan ahead of the holidays. Usually, making a budget to guide your holiday expenses and staying true to it will save you a lot of post-holiday stress. However, if you are already missed out on making such plans, here is how you can regain financial stability within a short time.
How To Save Money After the Holiday Season Without Feeling Overwhelmed
Generally, you have to plan your finance and see how you can cut down costs. You may want to maintain some of the measures suggested here only for a period of time. However, most of these tips will help you plan your finance on ordinary days too.
1. Create a Monthly Budget
Budgeting is always the first wise step towards any financial goal. It is even more important when you are trying to save during crucial times like this and you need to take your time to plan a well-defined budget.
As a rule of thumb, you can apply the 50-30-20 budget rule. However, you need to narrow that down even more.
After taking out the 20% cash you want to save, clearly write out your needs and how much you will allocate for each. Do the same for your wants. You can further cut down on wants and carry whatever you cannot afford at the moment over to the next month.
2. Have a Saving Goal
Setting goals help you to define the result you hope to get so that you can stay focused through the process. Similarly, if you want to increase your commitment to how to save money after the holiday season setting saving goals will help.
For instance, if you are looking to buy a car in a year’s time, visualize achieving this goal. Then, calculate how much you will need to save on a monthly basis to get there. Notice that in my example, there is a one-year timeline.
Timelines are important to keep you motivated. However, it is important to set achievable goals and timelines based on your income.
3. Create a Unique Saving Account
I once read a book that suggested having three different accounts. One for bills, one for wants and the third for saving.
Even though you do not want to separate your needs and wants accounts, it is advisable that you have an entirely separate account for saving.
Not only does this keep you from robbing yourself of your savings, but it also makes it easy for you to see at a glance how close you are to your saving goal.
4. Cut Down on Your Spending
You should cut down on spending in every way possible. This is one of the fastest ways how to save money after the holidays.
Many recommend that you cut down on nonessentials, but there are some essentials you can cut down on too.
For impulse buying, you can apply the 30-day saving rule to help you decide what is really important. However, if you cannot wait for up to 30 days, you can reduce the duration to suit you. The idea is to avoid buying on impulse.
Aside from the 30-day saving rule, below are some tips on how to save money after the holiday season.
Ask for discounts
There is no big deal in this. When you go to buy stuff, enquire if there is any ongoing discount. If you are buying online, you can search for coupons or promotional codes.
Prepare your lunch:
Because you are trying to reduce expenses to the barest minimum, it will help to pack your lunch from home rather than buy it.
Cancel auto subscriptions:
Except it is an absolutely necessary service, you should cancel all auto subscriptions and subscribe only to the ones you need per time.
Maximize free entertainment:
From concerts to outdoor relaxation centres, make the most of free spots. This way, you neither deny yourself entertainment nor spend much on it.
Do away with the brands:
Those unbranded items that are sold at cheaper prices are not necessarily inferior. You may want to go for them, at least till your pocket recovers.
Imagine how much you will save if you redesigned your room yourself as against hiring a professional. There are many other things you can do yourself to save cost.
Find some DIY inspirations in the articles below.
5. Keep Track of Your Expenditure
Yes, you have made a budget, however, tracking your expenditure is also how to save money after the holiday season. With this, you can tell where your money went, including the things you probably didn’t remember to include in your budget.
Then, you can decide the things you can do without or the things you could have exchanged for something more useful. Consequently, your conclusions will guide your future spending.
6. Pay Off Debts As Soon as Possible
It may not sound like it, but clearing debts is also how to save money after the holidays. This is especially important for dents that you will have to pay back with interest. The more time you waste, the more it builds up.
Hence it is important to pay them off in the shortest time possible.
7. Spend Gifted Money Wisely
Having a well-defined budget for your main income is not an excuse to spend extra money on frivolities. If you really want to recover from your holiday spending, putting that extra cash to good use is definitely how to save money after the holiday season.
It’s okay to indulge a little, but you want to make sure the bulk of the money goes to something important that can help you save a little more. Deciding what percentage of gifted money should be used and for what is a good way to check your spending.
8. Work Extra Hours or Start a Side Hustle
Extra hours or a side hustle equals extra income which means you can save more. If your job allows you to take extra paid hours, go for it. you may not have to do this for too long. However, if there is no chance for extra hours in your workplace you may want to think of a side hustle you can start to earn some extra cash.
One major way of saving up money is to cut down on spending. Although finding an extra income source can help, if you do not plan your spending, your effort might go to waste.
Managing money does not always have to feel overwhelming and saving is not the end of fun for you. Truly, the end of the holidays welcomes the reality of how much money we spent and for some, it may seem as though they may not recover from the expenses. Nonetheless, this article has shown how to save money after the holiday season to help you get back on your feet as soon as possible.
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