Ways To Stretch the Holiday Budget Further

The holidays are fun and during this time, it’s easy to forget about your budget and splurge. Wondering how to stretch the budget further after you’ve had a holiday blowout?

The festivities can continue throughout the year with some careful planning. The more preparation you put in, the more you’ll be rewarded. Here are ways you can recover from overspending for the holidays and stretch the budget further.

Stop the Guilt

Christmas came and went. You spent too much, and you can’t go back. Stop feeling guilty. Instead, channel your energy into writing down where you overspent. Take note of all the unaccounted costs and get its total — shipping fees, extended warranties, gift wrap, and checked baggage fees. Learn from your budget mistakes. Set yourself a realistic goal of spending less next time.

‘No-spend’ Month

Following the holiday season, it’s the perfect time to challenge yourself to a ‘no-spend’ month. Anything that isn’t necessities or bills (groceries or gas) gets put on the backburner until after the challenge. It’s up to you how long the challenge goes. It’s recommended to be at least a month.

Holiday Leftovers

xmas dinner

Using what you have in your home can save you heaps. Start with holiday leftovers. Check out online for recipe ideas on leftovers. It’ll be amazing what you can throw together without going to the supermarket.

The Snowball Effect

The snowball effect is a great approach for paying off multiple debts. It emphasises the power of motivation and gives off a sense of accomplishment after paying off a debt. For example, choose one credit card to pay extra while paying the minimum balances on the others. You then move onto the next card once you pay off the first debt. Continue until they’re all fully paid off.

When it comes to paying off your debt, you have the option to consolidate them all into one loan. With debt consolidation loan, you only have one loan to worry about. This can speed up paying off the principal, which makes dealing with the balance faster. Debt consolidation can improve your credit score and there’s a tax break too.

Set a New Budget

Create a budget and stick to it — is one of the fundamental steps that should be taken when cleaning up your finances. Figure out how much is coming in (income), going out (spending), and surplus each month to put towards paying off your debts.

Write everything out and make a list of all of your payments and bills — from rent to loan. Segregate your fixed expenses (rent or insurance) from your variable expenses (utilities or entertainment). Obviously, there’s room to cut costs from your variable expenses.

Change Your Habits

Now, it’s time to put that budget into action. Making favourable changes in your money habits is the cure to your holiday debt hangover.

You can still enjoy your regular perks like coffee or dinner with friends, but it’s better to try and change some of your habits. Instead of going out for dinner 2x a week, set aside the money you would’ve spent on the second night to pay off your debt.

It’s important to look closely at your bank account to figure out where you are financially. Make sure you can at least pay your usual monthly bills, such as rent and utility. If you can’t, you may need a loan to help you get back on track. With this approach, be sure to incorporate the repayments into a revised budget.

Cigno Loans can help with their emergency loans, as well as bad credit loans — if you have a less than stellar credit history. Once your application is approved, cash is moved into your bank account the same day with repayments easily arranged.

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.