Resolve To Get Your Post-Holiday Savings Back on Track

It's easy to overspend during the holidays. Between family gatherings, last-minute gift splurges, travel and those “'tis the season" treats, many households spend far more in November and December than in any other months. So if you went overboard this season, you're far from alone. In fact, during the 2024 holidays, Americans piled up an average of $1,181 in debt.

That's the bad news. The good news? January is the best reset button you'll get all year. With holiday chaos behind you, you can take a clear-eyed look at your finances, patch up the damage and set yourself up for a smoother, less stressful year ahead.

Step 1: Assess the Damage

Before you can move forward, you need to see the full picture of what you actually spent. Start by pulling your November and December bank and credit card statements, plus any receipts you've held on to. Go line by line and highlight holiday-related costs: gifts, travel, groceries, decor, celebrations and yes—even those “treat yourself" sale splurges.

Add it all up. The total may sting, but knowing the exact number is better than guessing. Once you know how far the season has stretched your wallet, you can make a clear plan to repair the damage and move forward.

Step 2: Address Holiday Debt Head-On

After you add up your holiday spending, the next step is figuring out how to pay it down. Holiday debt can snowball quickly if left unchecked, but a clear plan keeps it manageable.

• List it all out. Write down every balance, interest rate and minimum payment. Seeing the full picture helps you prioritize.
• Target high interest first. Prioritize paying off the credit cards with the steepest interest rates, while making minimum payments on the rest. This “avalanche" method saves you the most money long term.
• Or go small to build momentum. If motivation matters more than math, the “snowball" method—knocking out your smallest balance first—can give you quick wins and keep you moving.
• Explore smarter options. A balance transfer or consolidation loan can reduce interest costs, but only if you stop adding new charges.
• Put windfalls to work. Tax refunds, bonuses or resale money from unwanted gifts can make a real dent if you direct them straight at your balances.
• Automate payments. Scheduling them helps you avoid late fees and ensures steady progress.

The sooner you act on what you uncovered in Step 1, the faster you'll dig out from holiday debt and start the year on solid footing.

READ MORE: Want to Be Debt-Free? Start with this Checklist

Step 3: Reset Your Financial Goals

With holiday spending under control, it's time to look beyond the short term. The start of a new year is the perfect opportunity to reevaluate both your short- and long-term financial goals and adjust them if they've shifted.

• Short-term goals. Maybe this is the year you save for a dream vacation, a new car or a house. Perhaps you want to start saving for next year's holiday season. Give those goals a spot in your budget so they're not just wishful thinking. Bucketing can help you save.
• Long-term priorities. Retirement savings should stay on track, even if it's a slow build. Small, steady contributions make a huge difference over time.

Knowing your priorities gives you direction. The next step is to build a budget that supports those goals and makes them achievable.

READ MORE: 5 Reasons Why People Miss Their Financial Goals

Step 4: Create Your Post-Holiday Budget

A budget isn't about restriction; it's about making sure your money lines up with your goals and priorities. The holidays may have stretched your wallet, but a solid plan helps you regain control and move forward with confidence. Start by reviewing your recent expenses and sort them into two buckets:

• Fixed: Housing, food, insurance, transportation
• Variable: Dining out, streaming, shopping and extras

Be honest with yourself: Some fixed costs can be trimmed. Transportation is essential, but carpooling or public transit might lower the bill. Groceries are nonnegotiable, but meal planning or switching to a no-frills brand can make a real difference.

If variable spending has crept too high, look for quick wins: pausing a subscription, cutting back on dining out or swapping a night at the movies for a free community event. Small changes free up room for what matters most.

And don't forget protection. Build an emergency fund into your budget—three to six months of expenses is the goal—so unexpected costs don't push you back into debt. Pro tip: Open a high yield savings account to hold the funds and earn interest on your deposits.

Don't have a budget? Here's how to get started.

Step 5: Boost Savings With Smart Strategies

Small wins add up, and they don't have to feel painful. Try these strategies:

• Automate it: Set up automatic transfers from each paycheck into a separate savings account. Keeping that money out of sight makes it less tempting to spend.
• Try challenges: Experiment with no-spend weeks or months, where you commit to slashing nonessential spending.
• Get round-up or budgeting apps: Let tech save for you by tucking away spare change from everyday purchases, or alert you if you're about to go over budget for the month.
• Use gift cards and rewards: Don't let free money go to waste. Nearly half of Americans have unused gift cards lying around, worth an average of $244 per person. Put yours to work—cover essentials, treat yourself or even pick up gifts for others while holiday sales are still running.

Step 6: Turn Returns and Sales Into Savings

If you received gifts you don't need, consider returning them and using the refund or store credit for essentials you'll actually use.

For items you can't return, list them on resale platforms like eBay, Poshmark or Facebook Marketplace. Then put the proceeds toward savings or paying down debt to give those unwanted gifts real value.

And don't forget to think ahead. Post-holiday clearance sales are a gold mine for next year's wrapping paper, decor or even early gift-buying. It's one of the easiest ways to cut next year's holiday bill.

READ MORE: Smart Ways to Make Money from Home

Step 7: Plan for Next Year

The best way to stop the holiday hangover is to plan ahead for next year's festive fun. The expense list you build this year can be your road map for next season's budget.

• Open a holiday fund: A separate savings account makes it harder to “accidentally" spend the money elsewhere. Even $20 a week grows to over $1,000 by December.
• Keep a running list: Gifts, travel, food, decor—estimate costs so you're not blindsided.
• Shop early: Retailers roll out big sales year-round, from summer clearance events to Black Friday deals weeks in advance. Grab bargains when you see them.

By spreading expenses across the year, you trade one painful lump sum for manageable, bite-sized contributions.

Next Year Starts Now

Holiday spending can throw even the best budgets off course, but you don't have to wait until next December to prepare. By setting clear goals, tracking expenses and making small, steady adjustments, you can head into the next season with less stress and more control.

The financial choices you make now are the foundation for the holidays you want later. Start building that foundation today, whether it's with a high yield savings account or a certificate of deposit (CD) from Synchrony that helps your money grow while you plan for next year.

READ MORE: 13 Tips to Increase Your Financial Resilience