Holiday spending hangover? Your guide to financial recovery
Have holiday bills left you feeling dizzy? You can remedy that starting today with a holiday overspending recovery plan.
Kimberley Ward, San Jacinto College’s continuing and professional development training coordinator, teaches personal finance after 25 years in the financial industry. If you want to reset after the holidays and build better financial habits, Ward shares how:
Q: What first steps should I take in January after overspending?
Your electric bill, your water bill, your cell phone — those don't show up on your
credit report. They need to be paid, but if you want to do your credit card first,
you may be able to push those toward a certain time of the month.
Q: Should I pay off debt or rebuild savings first?
A: Debt first because it reflects on your credit report. You don't know what other things you’ll need down the road. Rebuilding your savings is important, but it should come after you've paid off debt. You've got more time to save.
Q: Can I use retirement funds to cover holiday bills?
A: You risk relying on retirement funds. Retirement funds are — key word — retirement. If you start thinking you can dip into that to help subsidize disposable income, you may run out of that retirement fund, which leads to having nothing to live off.
Q: What’s a simple 1- to 3-month budget reset?
A: First, purchase only what you need. If you don't need it, don't buy it. You can make payment arrangements with vendors on things that you can't pay now.
Next, make a food plan. Cook and eat only at home — it’s healthier and cheaper.
Finally, use your car for work only the first couple of months. It saves on time and gas.
Q: How can I set gift-giving boundaries with family?
A: Gifting doesn't always need to be monetary. You can give your time — “Let's spend the afternoon making a favorite dessert” or “I'm gonna help you clean the house.” That's helping and making memories with family.
If there's something my family wants, I save for it throughout the year versus going out in December when everybody else is looking for it, and the prices are expensive.
Plan what you’ll spend per family member. Be realistic, and stick to it (for example, $100, not $101).
Q: Do you have any banking or bill-pay suggestions?
A: Put your bills on autopay. This ensures things are done on time, and you know what your disposable income is — no surprises. Have a savings account and do an automatic transfer. Even if it’s only $25 a month, that’s building something.
Q: Thoughts about credit cards?
A: Be mindful of “I’ve gotta have it now” shopping. Use credit cards for emergencies only, and an emergency is not Starbucks.
Go back to the cash in the envelope days. Once you spend that cash, that's it until the next pay period. You can get in trouble with “Oh, I’ll just charge it and pay it off.” If you're not financially savvy to pay that credit card off each month, your balance starts building, and interest starts accruing.
Q: Any final advice?
A: Get out in the community, whether it's church or a community center. Walking with a few friends can take your mind off “I need to buy stuff.” Buying leads to hoarding, spending too much on what you don’t need, and not using what you bought. That's not financially savvy if you're on a limited or restricted income.
Creating a budget helps you avoid overspending so you can enjoy the holidays stress-free. With smart planning, you’ll start the new year with a jingle in your pocket thanks to extra cash!
Finance Fundamentals
Register for Kimberley Ward’s Finance Fundamentals course (BNKG 55000) from March 31-April 23 to explore:
- Credit reports
- Loan types
- Financial statements
- Debt-to-income ratio
- And much more!
You may qualify for a lower tuition waiver if you’re 55+ or up to six free credit hours if you’re 65+. To learn more, contact 281-542-2020 or registration.cpd@sjcd.edu.
About San Jacinto College
Surrounded by monuments of history, evolving industries, maritime enterprises of today,
and the space age of tomorrow, San Jacinto College has served the people of East Harris
County, Texas, since 1961. The College is ranked second in the nation among more than
1,100 community colleges, as designated by the Aspen Institute and was named an Achieving
the Dream Leader College of Distinction in 2020. As a Hispanic-Serving Institution
that spans five campuses, plus an online college, San Jacinto College serves approximately
45,000 credit and non-credit students annually. It offers more than 200 degrees and
certificates across eight major areas of study that put students on a path to transfer
to four-year institutions or enter the workforce. The College is fiscally sound, holding
bond ratings of AA+ by Standard & Poor’s and Aa2 by Moody’s. San Jacinto College is
accredited by the Southern Association of Colleges and Schools Commission on Colleges.
