The holiday season often brings happiness and togetherness, but it can also lead to increased spending. In 2024, U.S. consumers spent an average of $1,638 on gifts, travel, and entertainment, marking a 7% increase from 2023. As we enter the new year, it’s important to focus on restoring your savings account and achieving financial stability. Here are some helpful tips to help you get back on track:
1. Evaluate Your Financial Situation
Start by going over your recent purchases to understand your current financial standing. Keeping track of your spending can reveal areas where you might be able to cut back. Utilizing budgeting apps or guides can simplify this process and provide a clear picture of your finances. Here are some apps and websites that can get you back on the road to saving:
- Oportun – Automatically transfers from your bank account to the in-app savings account, offering a 0.10% bonus for consecutive monthly saving.
- PocketGuard – Offers simple budgeting with a focus on savings while highlighting disposable income after bills.
- Rocket Money – Assists with canceling unused subscriptions and tracks spending habits.
- NerdWallet – Provides comprehensive budgeting tools and advice on saving strategies.
2. Create a Post-Holiday Budget
Set a realistic budget that accounts for your income, necessities, and savings goals. Categorize your spending into “needs” and “wants” to recognize non-essential expenditures that can be decreased or eliminated. This approach can help prevent unnecessary debt and align your spending with your financial objectives.
3. Set Clear Savings Goals
Establish specific, achievable savings targets to motivate yourself. Whether it’s rebuilding an emergency fund or saving for future expenses, having clear goals can guide your financial decisions and encourage disciplined saving habits.
4. Explore Additional Income Opportunities
Consider pursuing side jobs or freelance work to boost your earnings. Opportunities such as driving for rideshare services, online tutoring, or selling unused items can provide extra funds to accelerate your savings efforts.
5. Automate Your Savings
Set up automatic transfers from your checking account to your savings account to ensure steady contributions. Treating savings like a regular bill payment can help you build your savings effortlessly over time.
6. Review and Adjust Subscriptions
Audit your monthly subscriptions and memberships to spot services you no longer use. Canceling unnecessary subscriptions can free up cash that can be redirected toward your savings objectives.
7. Practice Mindful Spending
Adopt a “slow shopping” approach by waiting 24 hours before making non-essential purchases. This pause can help reduce impulse buying and confirm that your spending aligns with your financial goals.
8. Plan for Future Holidays
Start setting aside money for the next holiday season early in the year. By allocating a small amount each month, you can alleviate financial stress when the holidays arrive and avoid accumulating debt.
9. Consolidate Debt with a Personal Loan
If you’re juggling numerous high-interest credit card balances from holiday spending, consolidating your debt with a personal loan could be a smart solution. Debt consolidation loans combine your debts into one monthly payment, usually with a lower interest rate. This simplifies your finances and can save you money over time.
Right now, Palisades Credit Union has rates as low as 8.74% for our Personal Debt Consolidation Loan Special. If you could use the extra help apply now for a chance to get your after-holiday savings back on track.
10. Take Advantage of Credit Card Balance Transfers
Another option for tackling holiday debt is transferring your balances to a credit card with a lower interest rate or a 0% introductory APR offer. This can significantly reduce the amount of interest you pay, allowing more of your payments to go toward the principal balance.
We currently offer 0% interest for 15 months when you transfer a preexisting balance to our Platinum Rewards Mastercard. Apply now or speak with one of our financial sales representatives to see if this option is best for you.
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