It’s easy to get swept up in the holiday season and forget about your finances. Watching your spending at this time of year isn’t fun — who doesn’t want to splurge on Black Friday deals, entertain family and friends, and enjoy the holidays carefree? But when it’s all over, you might feel differently once post-holiday spending guilt hits.
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“It’s that sinking feeling in January when the credit card bill shows up and you realize December was a little more treat yourself than planned,” said Jade Warshaw, personal finance expert and author of “What No One Tells You About Money.”
Seeing that bill for the first time is overwhelming, and “it usually comes from giving without a plan,” Warshaw said. “The guilt hits when the holiday high wears off and reality sets in.”
The high cost of holiday cheer can dent your wallet hard, but there are ways to get your finances in shape for next year. In an exclusive interview with GOBankingRates, Warshaw shared four approaches to dealing with post-holiday spending guilt.
Do a January Reset
Brace yourself for sticker shock and face the music. Shying away from your credit card statement won’t help.
“Look at what you spent, call it what it is, and decide what you want to do differently next time,” said Warshaw. “Guilt keeps you stuck; clarity gets you moving.”
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Build a Holiday Sinking Fund Now
To avoid feeling a range of negative emotions about post-holiday spending next year, prepare in advance.
“Set aside a small amount each month so December isn’t one giant financial surprise,” said Warshaw.
And it doesn’t have to be that much. Warshaw noted that even if you save $25-$50 a month for holiday spending, it “builds a cushion that takes the pressure off.”
Set Spending Guardrails Before the Season Starts
Setting clear limits is essential in all relationships, including the one you have with your finances and how you manage your spending on others.
“Decide in advance what you’re buying, who you’re buying for, and how much you’re spending,” Warshaw said. “When money has boundaries, you feel more peace and less panic.”
Align Your Giving and Gifting With Your Values
Make your gifts more meaningful by being intentional with your spending. Before buying a holiday gift, take a moment to ask yourself why you’re buying it, what your true intentions are, and what impact you hope it will have.
According to Warshaw, “Most people overspend because they’re trying to meet expectations, not because it reflects what matters to them.” She added, “When you get clear on your values, your spending follows.”
Don’t let post-holiday spending guilt weigh you down. With the right mindset and smart planning, you can regain control and set yourself up for a successful year of mindful spending, saving, and investing.
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This article originally appeared on GOBankingRates.com: Post-Holiday Spending Guilt: How to Reframe Your Finances in the New Year
