Frankly Speaking, January is for Financial Recovery

Okay, let’s be honest. December was a whirlwind of festivities, family gatherings, and maybe just a few too many impulse buys. Now that the dust has settled and the new year is here, it’s time to face the music (and maybe a slightly terrifying credit card statement).

But hey, don’t panic! January is the perfect time for a financial fresh start. Think of it as a chance to hit the reset button and get back on track with your money goals.

Here’s the frank truth about how to tackle your post-holiday finances:

1. Acknowledge the Situation (No More Hiding!)

First things first, take a deep breath and assess the damage. Ignoring those credit card bills won’t make them magically disappear. Review your statements, track your spending, and get a clear picture of where you stand.

2. Create a Budget (and Actually Stick to It!)

It’s time to get serious about budgeting. If you don’t already have one, create a realistic budget that accounts for your post-holiday debt and helps you prioritize your spending. Look for areas where you can cut back (those daily lattes and takeout meals add up!) and redirect those funds toward debt repayment.

3. Tackle That Debt (and Kiss That Debt Goodbye!)

Don’t let those holiday bills linger and accumulate interest. Create a debt repayment plan with clear goals and deadlines. Consider strategies like the snowball method (paying off the smallest debts first for motivation) or the avalanche method (tackling the highest interest rates first to save money). Check out this Get Out of Debt coach if you want a customized plan.

4. Start Saving for Next Christmas (Yes, Really)

It might seem early, but trust me on this one. If you do not start planning now for this year’s Christmas, you will be in debt again. After years of putting all Christmas expenses on the credit card and taking months to pay it off, I finally figured out that Christmas came around every December 25th, and if I didn’t budget for it, I would be in the same predicament come January 1. Now, we have a designated Christmas savings account, and every time my husband and I get paid, we have automatic transfers that go into that account. It really does add up and has lifted so much stress off my shoulders when it’s time to start preparing for Christmas. Trust me when I say it’s worth it to start today! Even just $20 a month will make a difference!

5. Boost Your Savings (Even if It’s Just a Little)

Even if your bank account feels a bit depleted, try to prioritize saving. Even small, consistent contributions can make a big difference over time. Set a savings goal for the year and automate transfers to your savings account to make it effortless.

6. Re-evaluate Your Spending Habits (and Break Those Bad Habits!)

The new year is a great opportunity to reflect on your spending patterns. Are there any habits you need to break? Maybe it’s time to ditch those impulse buys, rethink those subscription services you barely use, or find more affordable alternatives to your usual expenses.

Here’s How ATFCU Can Help:

• Budgeting Tools and Resources: Check out our online budgeting tools or mobile app to track your spending and set financial goals.
• Debt Consolidation Options: Explore ways to consolidate debt and simplify payments. Call, text, or stop by any lobby location to speak with a loan officer.
• High-Yield Savings Accounts: Make your money work harder for you with a competitive savings account.