The holidays are a period of gift-buying, travel expenses, and time off work, so it’s easy to spend more than you earn. The best New Year’s resolution you can make is to straighten out your finances. Here are a few tips to help you stick to your budget and replenish your credit union account.

5 Ways to Budget After the Holidays

1. Take Inventory of Where You Are Financially

Once the holidays are over, it’s time to review your credit card statements. Make sure you can at least make the minimum monthly payments. If the totals are quite high, consider putting the cards in a drawer until you pay the balances down. 

2. Curb Excess Spending

Restrict spending when it comes to items that you don’t need right away. A good spending formula to use is the 50/30/20 rule, which allocates 50% of your monthly income to essentials, 30% to debt repayment, and 20% to wants. Once the debt is paid, put that money into savings.

3. Record Your Expenses

Record your everyday expenses so you know where to further cut back on spending. After a few months, review your notes for small indulgences, like coffee and dining out, that add up over time. Once you’re aware of them, ask yourself the next time whether you want to treat yourself or stick to your financial goals.

4. Set Up Automated Payments

Automating your payments through online banking ensures you set aside enough money for your credit card balance, plus you’ll never have another late fee. Paying off your balance consistently will also build your credit score. Just make sure you have enough money in the debited account every month.

5. Return & Reap Rewards

If you received a gift you likely won’t use, return it if possible. Also, redeem cashback deals or reward points on the credit cards you used leading up to the holidays, and use any gift cards. Whether you put these small bonuses toward your daily needs, debt balances, or credit union savings account, you’ll have extra cash on hand.

With hundreds of millions of dollars in assets and over 60,000 members across Hawaii, Hawaiian Financial FCU is one of the leading financial institutions in the state, with a reputation for combining personalized service with technologically advanced personal banking solutions. Learn more about our broad array of services, follow us on Facebook, Twitter, and Instagram for news and updates, or call (808) 832-3700 on Oahu or toll-free at (800) 272-5255 with any questions.