Checklist: 5 Easy Steps to Rescue Your Budget

While we are still in the middle of the shopping season, according to the International Council of Shopping Centers, holiday spending in 2020 is predicted to increase by 1.9% over 2019—that's in the middle of a pandemic! 

How do you rescue your budget from numbers like that? Well, thankfully, there are some easy steps to get back on track if you overspent during the holidays.

Step 1: Survey the damage
Don’t stick your head in the sand! If you think you may have spent more than you planned for, it’s better to prepare for the upcoming bills than ignore the expenses coming your way. Start now by gathering all your credit card purchases and cash receipts. This will give you a complete picture of what you owe.

Step 2: Make a plan for repayment
Now that you know what your total holiday expenses are, you’ll know if you can cover it with your income and savings when the bills come due. If not, now’s the time to make a repayment plan and add it to your budget.

To pay as little as possible in interest, commit to paying down your credit cards and loans first. If you decide to use your emergency fund to pay off holiday debt, be sure to replenish it as soon as possible. If it’s not feasible to pay everything off by the due date, figure out a doable amount to put toward your debt each month and stick to it.

Step 3: Cut the extras
The beginning of the year is often about tightening your belt—figuratively and literally! A few months of cutting unnecessary expenses can go a long way in paying off your holiday spending. Cook at home more, brown-bag your lunches and opt for low- or no-cost date nights. Don’t worry—when you focus on putting the money saved toward your debt, it will be paid off in no time!

Step 4: Increase your income
Be creative and think of ways to earn a few extra bucks. Here are a few ideas:

• File your taxes early




• Sell unused items (clothing, furniture, sports equipment, technology)




• Get paid to help others—check out a site like TaskRabbit




• Take on a second job

Step 5: Start planning now for the next holiday season
The great thing about organizing your holiday expenses is that you now have a blueprint for next year. Evaluate what you’ve spent and decide if it was too little, too much or just right. Then shoot for that amount in savings.

Be proactive by starting your own holiday fund now. Open a separate savings account or try Mountain America Credit Union’s Growth certificate account.* It’s a certificate account that earns dividends all year long. Easily grow your balance by setting up automated deposits from each paycheck. When holiday shopping time rolls around, you’ll have the money you need to shop and experience the season like you planned. Plus, you won’t be caught worrying about draining your bank account or being caught with a ton of debt!

* Federally insured by NCUA. Growth certificate accounts are available in 6-, 12-, 18-, 24- and 30-month terms. Early withdrawal penalties apply. Each member is limited to $100,000 in any one or combination of Growth certificate accounts.