How to recover from a post-holidays spending marathon

As the holidays come to a close and we pack our work lunches for our first shift, it’s time for our finances to hit recovery mode.

What's the key learning?

The holidays are spensy…and don’t we know it
Take stock of your financial sitch by writing down your previous debts and upcoming costs for the new year
Set a recovery strategy to pay down debt - starting with your highest interest rate loans
Set some SMART financial goals
Get organised for the 2022 holiday period early to spread the financial burden over multiple months.

The holidays are spensy…and don’t we know it.
There were the Christmas gifts, food and decorations…and then there was the Bond-themed New Year’s costume…and the glow sticks (obvs).

But as the holidays come to a close and we pack our work lunches for our first shift, it’s time for our finances to hit recovery mode.

Take stock of your financial situation

Our bank accounts ain’t pretty right now, but getting real about our financial health is the first step to recovering.

That means writing down:

Any outstanding debts (including buy now, pay later debts…or any money you owe to mates from previous dinners and nights out) and when they are due
Any upcoming costs in the near-future (i.e. upcoming events that you need to chip in or buy gifts for).

Set a strategy to pay down debts

Once you know how much you owe - and when you need to pay it by - it’s time to set your recovery strategy. To do this, ask yourself:

Which debts are due first?
Which debts have the highest interest rate?

Generally, you’d want to pay off the debts with the highest interest rate, while also ensuring you’re paying off the debts are due first to avoid making a late payment (and it impacting your credit score).

However, if this feels a little daunting…you may want to consider paying off your smallest debts first, so you can start to see progress on your debts immediately.

If you think things are getting a little out of hand and you’re unsure if you can manage your debts, you may want to chat to your bank or lender. They may be able to help you put a debt repayment plan in place.

Set your financial goals

With your debts under control, it’s time to set some financial goals. That means setting SMART (specific, measurable, achievable, realistic and timely) goals.

If you’re unsure how to set financial goals, check this out.

Setting goals will help you feel like you’re taking control of your financial situation, and paving the way to a better financial future. Love that for you, Flux fam.

Get proactive for the 2022 holiday period

Fool me once, shame on you. Fool me twice…well we know who’s to blame for that one (YOU!)

If 2021 is anything to go by, the holidays can creep up on you quick. And if you’re not that organised…they can also be really expensive. So, get on top of them early this year. If that means having Christmas or birthday presents stacked up in your closet from May…so be it.

Getting prepared early spreads the financial burden over multiple months…as opposed to a few weeks.

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