5 Tips To Start Your Financial Recovery After the Holidays
Written by
Cindy Lamothe
Edited by
Jenna Klaverweiden
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The holidays are finally over — you’ve done all the shopping, cooked all the lavish meals, and spent your holiday bonus and then some. Now you may be left with a depleted bank account and the stress of knowing January will likely feel like it lasted 100 days.
But if you’re stressed about your finances, there are things you can do. It is possible to start your financial recovery plan after the holidays — and you can do that with some tips from experts.
“Recovering from holiday spending requires a strategic approach to regaining financial stability,” said Kevin Shahnazari, founder and CEO of FinlyWealth.
Here are five tips to start your financial recovery after the holidays.
Also see five money tips from Suze Orman for a fresh start in 2025.
Prioritize Debt Repayment
“I advise prioritizing debt repayment,” Shahnazari said. “Focus on high-interest debts first, as they can quickly spiral out of control if left unchecked.”
He recommended using the snowball method, where you pay off smaller debts first to build momentum, or the avalanche method, which focuses on the highest interest rates.
“Both strategies can help regain control over finances more effectively,” he explained.
Consumer finance expert Austin Kilgore, analyst with the Achieve Center for Consumer Insights, agreed.
“First and foremost, make the commitment. If you accumulated debt, changing your habits and lifestyle are likely going to be necessary to eliminate it. It won’t be as fun as the holiday shopping and festivities were,” he said.
Adjust and Track Spending Habits
Additionally, Shahnazari said it’s crucial to adjust spending habits moving forward. “Identify areas where you can cut back without sacrificing quality of life, such as dining out less or finding free community events,” he said.
By making conscious choices about spending, individuals can start saving again and work toward paying off any holiday-related debts, Shahnazari said.
Kilgore agreed. “To help, get serious about tracking every expense — online and off — for a few weeks to find just where your money goes and where you can cut back,” he said.
Develop a Budgeting System
Next, you should implement a budget to help you stay on track. “It’s essential to assess your current financial situation by creating a detailed budget that includes all income sources and expenses,” Shahnazari said.
Kilgore also recommended getting serious and developing a simple budget for your household (no matter how many people are in it).
“Many people resist doing this because they think it is meant to restrict spending and make their lives difficult. It’s not. It’s intended to serve as a tool that helps guide your spending so that you can achieve what you really want in life,” he said.
Kilgore advised that if a key goal is to get out of credit card debt (perhaps so you can take a vacation, buy a new TV or retire at a certain age), building the budget around your goals will make it much easier to stick to it.
Plan Low-Cost Winter Activities
“The urge to keep the holiday spirit alive can lead to overspending on entertainment,” said Max Avery, chief business development officer at Syndicately.
His best tip is to plan free or low-cost activities, like hiking, hosting game nights or visiting local museums, to enjoy the season without adding to your expenses.
“Look for deals or discounts on winter activities and plan your budget accordingly, such as budget-friendly winter getaways or discounted ski passes,” he said. “You see, quality time and memories with loved ones are more valuable than expensive gifts or decorations.”
Participate in a No-Spend January Challenge
“I always follow the rule of committing to a no-spend month to reset your finances,” Avery said.
He recommended focusing on essentials, like rent and groceries, while cutting out discretionary spending.
“This can help you recover faster from holiday expenses and build savings momentum. I noticed that the no-spend January challenge can help you save up to 20% of your monthly income,” he explained.
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