BRIEFING
Holiday Spending Reset
The holidays are a time for celebration, but they can leave your finances feeling stretched. Now’s the perfect time to create a post-holiday recovery plan and start 2025 with a stronger financial foundation. Here’s how to bounce back with purpose.
Start 2025 with a Financial Tune-Up
STEP 1
Take Stock and Plan
A new year means a fresh start — so why not begin with a financial tune-up? Take these simple steps to strengthen your financial foundation to help you reach your goals.
Balance Spending and Saving Paying down debt is important, but don’t let savings fall by the wayside. Even small contributions to a savings account can help you prepare for emergencies or future goals. Try the 50/30/20 rule: 50% of your income for needs, 30% for wants and 20% for savings or debt repayment. Begin by reviewing your holiday spending. Check credit card balances, loans or other holiday expenses. Then, map out a plan to pay them down. Break payments into manageable amounts and set realistic deadlines to keep yourself on track. STEP 2
Credit Checkup Tips
STEP 1
STEP 3
Check Your Credit Report
Monitor Your Credit Regularly Keeping an eye on your credit is just as important as checking it annually. Use free credit monitoring tools to get alerts about changes to your credit report, such as new accounts, inquiries or changes in balances. Regular monitoring helps you catch potential fraud early and ensures your credit stays on track throughout the year.
Your credit report holds the power to shape your financial future. Get your free annual report from Equifax, Experian and TransUnion at AnnualCreditReport.com. Review it early to catch and dispute errors, like incorrect balances or unknown accounts, and avoid issues when you need credit later.
STEP 3
Use the Right Tools
Smart tools make managing your finances easier: • Budgeting Apps: Look for an app that aligns with your goals. Consider features like spending tracking, bill reminders and savings goals. • Credit Union Resources: Frontwave offers savings accounts and financial planning tools to help you move forward with confidence.
STEP 2
BONUS TIPS
For Military Members
Strengthen Your Credit
Strong credit equals savings. Better credit scores lead to lower interest rates on loans and mortgages, putting more money back in your pocket. To build or maintain good credit: • Pay on time: Timely payments make up a big chunk of your credit score. • Keep balances low: High credit card balances can hurt your score. • Don’t close old accounts: Credit history is a key factor in your credit score. • Limit new credit inquiries: Only apply for credit when it’s essential. Good credit isn’t just a number — it’s the foundation for building big dreams.
If you’re on deployment or an extended assignment, set up automatic payments to avoid missed deadlines. Notify creditors about your deployment status — you may qualify for protections under the Servicemembers Civil Relief Act (SCRA). Keeping your credit usage low while deployed can help you avoid unnecessary debt. Start your year with confidence. A quick credit checkup today can help you dream big and achieve even more tomorrow. By reviewing your credit report, strengthening your credit habits, and staying proactive, you’ll set yourself up for greater financial opportunities. Small steps now can lead to big rewards down the line.
STEP 4
Adjust and Move Forward
Recovering from holiday spending doesn’t mean cutting out joy. Identify areas where you can scale back without sacrificing what matters most. Whether it’s fewer takeout meals or a pause on nonessential purchases, small adjustments can lead to big savings over time. Simple changes like skipping a daily $5 coffee or cooking at home instead of ordering out can free up extra money for your financial goals. With a clear plan and the right resources, you can recover from holiday spending and start building toward your bigger goals.
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