Disclaimer: The following is a sponsored post by Lexington Law. All opinions are 100% my own.
The average person spends almost $1,000 during the holiday season on gifts and travel.
On top of that, most people do not budget for the shopping season and start the new year with very little money and poor money management skills.
To curb all of those things, use the 10 tips below to not only recover from holiday spending but start the New Year fresh with a positive mindset toward saving and making money.
1. Improve your credit score
Did you know improving your credit score could potentially save you hundreds, if not thousands of dollars?
When you have a low credit score, you're spending more on high-interest rates on credit cards and auto loans, security deposits for utility companies, or even insurance companies that charge more for people with lower credit scores.
Increasing your credit score to the good or excellent range can help you manage your debt better for all of these reasons.
Do you not know what your credit score is? Lexington Law can give you a free credit report summary and credit repair consultation.
Did you know you may have inaccurate or obsolete items on your credit card? You can potentially get those removed with the help of Lexington Law.
Lexington Law has 10+ years of experience acting as advocates for consumers who need help repairing their credit and making sure they have a fair, accurate, and substantiated credit report.
Lexington Law has helped clients with over 10 million removals in just 2017 alone and has helped clients remove inaccurate and unverifiable items (such as late payments, charge-offs, and more) from their credit score.
There's no reason why you should be hurting because your credit score has inaccurate items listed.
2. Create a money map for the upcoming year
Do you have a financial plan for the year?
If not, you may want to think about creating one.
This can drastically improve your finances for the entire year.
What are your plans for the year?
What are your goals?
List these out and figure out how much each category will cost you.
When you get paid every month, put a certain amount of money each month into these categories.
At the end of the year, you should have a specific amount of money you set out to save in the beginning of the year on your money map.
3. Fix your mindset
Do you have a hard time with productivity, saving money, goal setting, and other important habits?
Natalie Bacon's Design Your Dream Life has been life-changing for me.
If you're a personal development fanatic like me, you need this amazing course.
Design Your Dream Life is incredibly comprehensive and has various modules to focus on working on your money mindset.
If you have a poor relationship and mindset toward money, Design Your Dream Life will be life-changing.
My mindset has gone through a total transformation because of Design Your Dream Life, and it's boosting my business income, relationships, and happiness overall.
4. Do things to cut costs
There are so many ways to save money and cut costs in your everyday life
Here are just a few:
- Use GasBuddy to find the lowest gas prices in your area
- Use Ebates to get cash back online
- Use Honey to find the best coupons online
- Use Trim to help you negotiate on bills to save money each month
- Use Cushion to get refunds on silly fees like late fees, overdraft fees, ATM fees, and more
5. Create a plan to pay off debt
Which debt should you pay off first?
The credit card with the incredibly high-interest rate, or the car with a very low-interest rate?
You may want to work on paying off the credit card with the high interest rate, as you're paying much more in interest here and your hard earned dollars are going to waste.
Once you pay off that debt, you can work towards your other debts.
6. Sell stuff you no longer use
Do you have a bunch of stuff laying around the house?
Instead of more stuff stacking in your house that you don't use, sell it!
The money you make should go straight towards your debts from the holidays.
Here is a comprehensive list that will tell you everything you need to know to sell your stuff to make money.
7. Start using cash back apps on groceries and necessities
If money is tight after the holiday season, start using cash back apps like Ibotta to save money on food, clothes, travel, and more.
Ibotta is a free money-saving app that gives you cash back at almost any store.
You get real cash – not points. Ibotta is my go-to app for saving money on groceries (even fruits and vegetables!), clothes, travel, and a lot more.
You even get $10 in your account just for signing up through my link here.
Ibotta is an app you should use year-round to help you save money.
8. Work side jobs
If you have the time, picking up a part-time job can be tremendously helpful as you can put all of that money towards your debt.
There are tons of side hustles to choose from below:
- Walking dogs on Rover
- Babysitting on Care.com
- Become an English teacher for VIPKID
- Or make money with your own blog
Once you pay off your debts, you can go back to your normal life without the side hustle, but you may fall in love with your new job!
9. Take advantage of your tax return
Instead of putting your tax return toward shopping or vacations, think about paying off your debts first.
This can lead to a less overwhelming feeling throughout the year and lead to an even better holiday season next year.
It's easy to think of your tax return as free money to splurge however you please, but you'll feel a lot better once your debt is paid off.
If you have no debt, save a chunk of that tax return for the upcoming holiday season.
You'll be happy when December hits and you have money already saved for shopping!
10. Sell your gift cards
Though many may not like this idea, if you don't need the gift cards given to you, you could trade it for cash to put toward bills and debt.
I have so many friends that leave gift cards in junk drawers for years and they eventually expire. (This may not be you, I know not everyone does this).
Or you can ask friends or coworkers if they shop at the gift card store, and they can give you full cash for the gift card since they shop there anyway.
Lexington Law has helped hundreds of thousands of clients remove inaccurate and unverifiable items from credit reports such as late payments, collections, charge-offs, and more.
If you need assistance with filing disputes or challenging specific items on your credit report, learn more about Lexington Law here and start getting the help you need today.
In a nutshell:
1. Recover from holidy spending by increasing your credit score. Lexington Law can help you with credit report removals.
2. Create a money map for the upcoming year, which is basically a financial plan.
3. Improve your mindset with Natalie Bacon's Design Your Dream Life, which has been life changing for me.
4. Take action and cut costs in any areas of your life.
5. Create a solid plan to pay off debt.
6. Get rid of clutter in your house and sell it.
7. Take advantage of free cash back apps that actually work and are easy to use.
8. Find a side hustle and pay off debt or put money toward savings.
9. Take advantage of your tax return and pay off debt.
10. If you don't plan on using gifted gift cards, sell them for cash.
What's your favorite tip to recover from holiday spending?
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