How to bounce back from the ‘financial holiday hangover’

The new year means a fresh start for some, but finances can make it challenging with all the spending that was done in the past couple of months.

According to Magnify Money, a website that helps consumers reduce debt, Americans racked up an average of $1,054 dollars of debt over the holiday season, a five percent increase from last year.

In a survey, about 75 percent of people said they failed to budget.

ABC-7 talked to GECU Chief Executive Officer Crystal Long about some of the most common mistakes when it comes to holiday spending.

Long said failing to set a budget is one of the most common mistakes.

“One of the things they run into is they don’t realize just how much they spend in the holiday season. At the same time, they didn’t plan for for a budget,” Long said.

Long suggested starting to budget now and save for the upcoming holiday season.

GECU offered some tips for budgeting:

– Set a long-term goal for yourself or family
– Determine how much money comes in after taxes and work benefits are withdrawn
– Determine how much you spend each month (bills, food, entertainment, and other)
– Add to your Savings account before other spending
– Record what you spend and every bill payment you make
– Make spending adjustments as needed
– Continue to monitor and track to reach your goals

GECU and other local banking establishments offer programs that allow you to save a small portion of your check is every month. The money is then released to you as the holidays approach.

At GECU, the Christmas account can be opened with a minimum of $10 between November 1 and March 31.

“As you go through the course of the year, you can deposit more money and earn interest on the money so you can grow that money and have more to spend when Christmas does arrive,” Long said.

GECU also offers some free financial services and money management courses.

For more information, call (915) 774-2160.