Christmas is over. The new year is here. The Christmas tree has been taken to the curb, kids are back in school, and Mom & Dad are back at work. But you know what’s still coming? Your December credit card bill. The holiday season often brings joy but can also lead to unintended overspending, 💸 especially for individuals with ADHD. If you’ve found yourself in this situation post-Christmas, fret not; there are steps you can take to regain control of your finances!
1. Take a Deep Breath and Assess
Before diving into panic or guilt, take a moment to breathe. Slow, deep breaths have a calming effect on the whole body! Mentally and physically.It’s crucial to approach the situation with a clear mind. Review your spending one statement at a time. Identify areas where you overspent. Remember to look at food, decorations, and travel, in addition to gifts.
2. Create a Post-Holiday Budget
Establish a realistic budget that incorporates your overspending. Break down your expenses, prioritize essential bills, and allocate funds to cover any outstanding balances. This step provides a structured plan to tackle the financial aftermath. If you need to, cut back on discretionary spending (like entertainment & eating out) until you pay off debt, especially things that are past due.
3. Communicate Openly
If applicable, communicate with friends and family about your situation. Honesty fosters understanding, and loved ones may be more supportive than you think. Discuss alternatives for future celebrations, such as setting spending limits or participating in gift exchanges. Money Coach Stephanie’s family draws names every year, and has a limit of $25 per person. She says she appreciates the predictability. Plus it is less overwhelming to shop for less gifts!
4. Hire a Money Coach
Consider working with a money coach who can help you make a plan for how to cover your overspending & prevent overspending next Christmas. Money Coach Stephanie has helped many clients communicate with their creditors to reduce interest rates, and negotiate new payment plans. Find out how money coaching could help you!
Remember, setbacks happen, and the key is to learn from them. Use this experience as an opportunity to refine your money management skills, and in the future, consider setting up a dedicated savings fund specifically for holiday expenses. By taking proactive steps, you can regain control of your finances and start the new year with a renewed commitment to financial well-being. Cheers to a happy, healthy and financially strong new year!