How to bounce back financially after Christmas spending

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Many of us can feel the financial squeeze after Christmas. Between shopping for presents, nights out and all the food for the big day – Christmas expenses can really add up quickly. If you’re wondering how to get your finances back in shape after all the merry-making, we’ve got you.

Here are five tips to help you bounce back from your Christmas over-indulgence and start the new year feeling financially refreshed.

1. Review your festive spending

A great way to start is by taking a quick look at what you spent over the festive period. It may not be fun, but having a clear picture of your outgoings will help you build a better game plan.

Sit down with a hot drink (and your bank app) and identify your major spending categories – like gifts, eating out and travel. Was there an area where you overspent, or anywhere you could cut back next year? These can then be factored into your budget for next December, so you don’t get caught off-guard.

2. Build a January budget

After reviewing, it’s time to rebalance. Creating a detailed January budget is a smart way to ease the financial strain. Start by listing out essentials like rent, utilities and groceries, then see what you’ve got left over.

If you’re looking to make savings, focus on the areas that you can control. A home-cooked meal instead of takeout, a movie night in, or a ‘no-spend weekend’ can free up a bit of extra cash. Or simply have a good look through your regular subscriptions and consider cancelling or pausing any you’re not making the most of.

Comparison sites are a great way to find better deals on your monthly expenditures. You could also consider shopping around for your weekly groceries – could you swap your usual supermarket for a ‘cheaper’ option and save money? 

Remember, budgeting doesn’t have to mean restriction – it’s just about making a clear plan about where your money goes. 

3. Prioritise paying off debts

If Christmas costs nudged your credit card bills higher than expected, setting a goal to pay it off can make a huge difference. Even small payments add up and can help you avoid extra interest. Start by listing all of your loans and cards, their interest rates, and repayment terms. If there are no 0% offers available, focus on paying off the debts with the highest interest rate. 

You could even consider using any extra January income, such as cash gifts or bonuses, to clear your balances. There’s no one-size-fits-all solution, so find an approach that keeps you motivated. You might even start to enjoy that satisfying feeling of ticking another debt off the list. 

4. Plan early for next year

It might feel strange to think about next Christmas in January, but planning early can make a huge difference. Consider setting aside a small amount each month into a dedicated “festive fund”. By the time December rolls around, you’ll already have a financial cushion to cover presents and any extras.

Apps or online banking tools can automate these savings for you too – making things easier. Even just a small amount each month can add up, letting you relax and enjoy the next festive season without as much worry. 

You could also consider signing up to a Christmas voucher scheme for your food shop. Many supermarkets now offer the option to convert points accumulated over the year into money-off coupons for December.

5. Revisit your goals

Finally, take a moment to revisit any financial goals you set at the start of the year. Whether it's building an emergency fund, saving for a holiday, or paying a bit more into a pension, these goals are important. Use this time as a chance to refocus and adjust as needed.

When it comes to your pension plan, you can often change your payments online with most providers. If you’re a Standard Life customer, you can find out more about our online services on our website. For help, FAQs and ways to get in touch, visit our support page. If your employer set up your plan and you want to change your monthly payments, get in touch with them to find out how this works for you.

You could also look at a few fun ways to boost your income. With lots of apps to choose from, selling items you no longer need is simple. And (as long as you don’t offend your favourite auntie) you could also sell any Christmas gifts you know aren’t going to get used! 

The main point is, post-holiday budgeting doesn’t have to be dull. By setting up a few simple practices now, you’ll be well prepared to enjoy a happy (and financially healthy) year ahead. And there’s definitely space to build a few treats into the plan too.

 

The information here is based on our understanding in December 2024 and shouldn't be taken as financial advice.

A pension is an investment. Its value can go down as well as up and could be worth less than was paid in.