Did you attend one too many gift exchanges? Go a little overboard with family presents? If your holiday budget disappeared faster than the decorations came down, you’re not alone. The good news? A financial reset is totally doable. Here are five simple ways to shake off that holiday spending hangover and start 2026 on solid ground.

Tackle Tip 1: Assess the Damage

Before you fix it, you’ve got to face it. Take an honest look at your holiday spending. Did you overspend? Dip into savings? Add a little extra to the credit card balance? Figure out what happened and how much you’re dealing with. Creating a quick, categorized list of expenses can help you see where the money went—and where to focus your recovery efforts.

Tackle Tip 2: Make a Debt Repayment Plan

Now it’s time for damage control. Once you know how much debt you’re facing, decide how much you can realistically put toward it each month. Skip the “I’ll cut everything and eat noodles forever” plan. A manageable, realistic payment plan is far more likely to stick—and actually get results.

Tackle Tip 3: Try a No-Spend Diet

Just like cleaning up after the holidays, it’s time to trim the extras. Consider a short-term “no-spend diet,” where you only spend money on necessities for a set time—January is a popular choice. Not ready to go all in? Pick one spending category to cut back on, like eating out or online shopping, and send those savings straight to your debt.

Tackle Tip 4: Reduce Monthly Bills

Little leaks can sink a budget. Take a look at your regular bills and see where you can make small changes. Do you really need that premium TV package? Are there subscriptions you forgot you even had? Cutting a few extras—or downsizing your phone plan—can free up money without much effort.

Tackle Tip 5: Make a Budget—and Stick With It

A budget doesn’t mean no fun—it means fewer financial surprises. Creating a clear, honest budget helps you stay on track and reach your goals faster. Track your spending, adjust as needed, and give yourself credit for progress, not perfection.

Holiday overspending can bring both financial and emotional stress, but it doesn’t have to last. With a little intention, a bit of discipline, and a solid plan, you can pay off those holiday bills and head into the new year feeling confident, capable, and financially refreshed.

Reference:
Sandberg, E. (November 21, 2023). Holiday Spending Trends. Newsweek.

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