The new year is here! You may feel a sense of calm and relief now that the holidays are over and you can get back into your regular routine. But perhaps your holiday spending wasn’t ideal, and you need to get back on track financially. Don’t worry! While it may take some work, fixing your finances post-holiday season isn’t an insurmountable task. “Improvement” doesn’t equal drastic changes; it could be a few small steps to help relieve some financial stress. Remembering this can help you stay on track during the process and keep your current financial situation from affecting how you see your value as a person.
People who connect their personal value with their financial state may consider a threat to their finances a huge stressor and threat to their self-worth, according to a study by Dr. Lora Park of the University of Buffalo. You’ve probably heard the phrase: “Money doesn’t buy happiness.” Achieving your definition of financial stability is important, but it won’t make other life stresses and issues disappear. A recent study by Dr. Matthew Monnot of the University of San Francisco found that human connections contribute to happiness more than money and that tying personal worth to extrinsic or external entities such as wealth can cause less satisfaction in life. A focus on intrinsic or internal needs like relationships and community can more positively impact well-being. So, while working on your relationship with your finances, work on your relationships with friends and family, too.
As you try to improve your finances after holiday spending, here are some tips from Every Sailor, Every Day campaign contributor and financial expert, Stacy Livingstone-Hoyte:
- Be proactive about understanding your spending and how to recover. Look through receipts and other records of transactions to see what you spent, make sure your statements are accurate, and then figure out how your budget needs to change so you can recover financially, get your savings in check, and avoid additional debt. If budgeting isn’t your area of expertise, Military OneSource and MilitarySaves can help!
- Figure out the financial balance that’s right for you. Making sure bills are paid each month and saving money for the future are important, but having some of your hard-earned money set aside for the fun stuff is good, too. When working on your budget, make reasonable room for all three. Having everything categorized can help you be prepared if unexpected expenses pop up. And don’t forget that the Blended Retirement System (BRS) is available as of January 1, 2018. If eligible and opting into BRS, consider how it may affect your finances.
- Think ahead and look for bargains. The holiday season isn’t the only time you may find yourself buying gifts. Plan ahead for birthdays, anniversaries, and other celebrations by setting reminders a month in advance so you don’t scramble at the last minute to find a gift you hadn’t budgeted for. Also consider your relationship with the recipient, and think of non-monetary gifts that may be more meaningful. Incorporate ways to save in all of your shopping. Compare prices, use coupons, and take other steps to save on gas, groceries and other daily needs.
Following these steps and others that work for you can put you on the right track to getting your finances closer to where you want them to be. Recovering financially after the holidays is a process, but dedication and the right mindset make it minimally stressful. Creating and maintaining a budget, determining what financial security is for you, saving daily, and realizing that money doesn’t determine your worth are key steps to making the improvements you want to see in 2018.