I Asked ChatGPT How To Recover From Overdoing Holiday Spending — Here’s What It Said
Written by
Laura Bogart
Edited by
Kristen Mae
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So, I got a little carried away with my holiday spending. I couldn’t resist finding just one more perfect gift for someone I love. And I brought a host gift with the most to every holiday shindig. To say that my wallet is unhappy with me would be an understatement. I need to start the new year back in the good graces of my budget.
I’m hardly alone: A survey conducted by Talker Research and commissioned by Beyond Finance indicated that only half of respondents created a holiday budget this season, and of those, 64% already have overspent or expect to. What should we do?
Ideally, I’d talk to a financial advisor about righting the ship in the new year, but in the meantime, I asked ChatGPT. After plugging in a simple question — “How can I recover from overdoing my holiday spending?” — I got a seven-step plan that seems easy enough to begin.
1. Get Clear on the Damage (Without Panic)
ChatGPT opened its advice with a simple truth: “You can’t fix what you can’t see.”
The AI encouraged me to list out my balances on any credit cards, any buy-now-pay-later loans, and holiday-related bills that are still coming in. It told me to note the interest rates and minimum payments. Once I totaled everything up, I knew how much I’d really need to pay back.
Wisely sensing that I might feel overwhelmed or even ashamed, ChatGPT reminded me: “Information isn’t judgment. It’s just data.”
2. Stabilize Next Month’s Cash Flow
Next, ChatGPT warned me that I’d probably feel the brunt of my overspending in January. It encouraged me to list out my non-negotiables — rent, utilities, groceries and insurance — and add up my minimum payments. Whatever I have left over is my “recovery budget.”
The AI advised that if I were going to struggle with my recovery budget, I should temporarily pause discretionary spending such as dining out or subscription services. I might also consider a short no-spend period; ChatGPT noted that even one or two weeks without spending can help.
3. Cut the Recurring Fat
As I rebounded my budget, ChatGPT told me to look for the small, recurring expenses that add up. The AI said I could nip some of these in the bud with simple actions:
- Cancel or pause unused subscriptions.
- Switch to cheaper versions of services (streaming, phone plans, insurance).
- Set spending limits on grocery or delivery apps if you tend to overshoot.
Even if these actions feel so tiny that they’re insignificant, ChatGPT reminded me: “Small recurring cuts compound quickly.”
4. Create a Short-Term Debt Strategy
To tackle any debt I incurred over the holidays, ChatGPT suggested picking a method and sticking with it. It offered three options:
- Debt avalanche (fastest mathematically): Pay extra on the highest-interest card first.
- Debt snowball (fastest psychologically): Pay off the smallest balance first for momentum.
- 0% balance transfer: “If your credit is decent and you can pay it off within promo periods, this can reset the interest clock,” the AI said.
Though ChatGPT didn’t go into deep detail, it gave just enough information for me to do my own research — whether that means consulting other financial experts or asking AI for more insights.
5. Generate Cash Quickly
Before I decided to take on a new part-time job, ChatGPT reminded me: “You don’t have to overhaul your life — small cash injections help.” It divided ideas into fast wins and medium wins.
Fast Wins:
- Sell three to five items you don’t use (Facebook Marketplace, Vinted, Poshmark).
- Return anything still within the return window.
- Do a weekend side gig (pet sitting, ride-share, TaskRabbit).
Medium Wins:
- Ask your employer about overtime or an extra shift.
- Pick up a small freelance job if you have a skill.
None of these options would inconvenience me terribly — and they’d let me put some extra money toward paying down my debt or padding my savings.
6. Reset Your Spending ‘Defaults’
I hadn’t considered that I could still be in the grip of my holiday spending, but ChatGPT sagely reminded me: “Holiday patterns can linger.” To help break the habits of overspending, the AI suggested a few techniques:
- Use cash envelopes for categories that are hard to control.
- Set up “speed bumps,” like a 24-hour rule before purchases.
- Put credit cards out of reach for a few weeks.
These tips weren’t bad, but they were still a little basic. To understand why I might overspend, I’d be wise to use these tips while also exploring the emotional roots of my relationship with money.
7. Start a Sinking Fund for Next Year
ChatGPT closed out its advice with a suggestion that I start a sinking fund for next year’s holiday spending. A sinking fund is a dedicated savings account where you regularly set aside money for a specific, anticipated expense — like holiday shopping.
“Even $10 to $20 a week starting now builds a cushion for next season,” ChatGPT said.
The Bottom Line
Ultimately, nothing replaces the insights of a financial advisor who knows the ins and outs of my financial history and my emotional attitudes around money. But when it comes to getting out of the holiday hole, ChatGPT offered some solid, actionable guidance for rebounding financially.
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