Practical Strategies for
Financial Recovery After the Holidays

The holiday season, while full of joy and celebration, can often lead to financial stress due to additional spending. Here are some practical strategies grouped into categories to help Canadians recover financially after the holidays.

Budgeting and Planning

  1. Assess the Damage: Review your bank and credit card statements to understand the total amount spent during the holidays. This will give you a clear picture of your financial situation and help you plan your recovery strategy. It’s important to know exactly where you stand financially before you can start planning your recovery.
  2. Create a Post-Holiday Budget: Adjust your budget to accommodate the extra expenses. This might involve cutting back on discretionary spending like dining out or entertainment. A detailed budget will help you understand where your money is going and where you can make adjustments.
  3. Plan for Next Holiday Season: Start a holiday savings fund now. Divide the total amount you plan to spend by the number of months left until the next holiday season, and save that amount each month. This will help you avoid debt next holiday season.
  4. Reassess Your Financial Goals: The start of a new year is a great time to reassess your financial goals. If you overspent during the holidays, it might be time to adjust your budgeting and saving strategies. This could involve setting new savings goals or finding ways to increase your income. Having clear financial goals can motivate you to save money and make wise spending decisions. Your goals could be short-term (like paying off holiday debt) or long-term (like saving for a vacation).
  5. Track Your Spending: Keep a record of all your expenses. This will help you understand where your money is going and identify areas where you can cut back. Consider using a budgeting app or a simple spreadsheet to track your spending.
  6. Prioritize Your Spending: Focus on necessities first, such as rent or mortgage, utilities, groceries, and essential personal items. Once these are taken care of, you can allocate any remaining funds to paying off holiday debt.

Debt and Spending

  1. Pay Off Holiday Debt: If you used credit cards for holiday shopping, aim to pay off the balance as soon as possible to avoid high interest charges. Consider transferring the balance to a card with a lower interest rate, if possible. This could save you a significant amount in interest over time.
  2. Limit Credit Card Use: Try to limit your use of credit cards until you’ve paid off your holiday debt. This will prevent you from accruing more debt and make it easier to pay down what you owe. Consider using cash or a debit card for purchases instead.
  3. Avoid Post-Holiday Impulse Buying: It’s easy to be tempted by sales and discounts, especially after the holiday season. However, try to resist impulse buying. If it’s not something you need, it’s better to save the money. Remember, just because something is on sale doesn’t mean you need to buy it.
  4. Return Unwanted Items: If you have gifts that you don’t need or items that you bought on impulse, consider returning them for a refund. Be sure to check the store’s return policy. Some stores in Canada have extended return policies for the holiday season.
  5. Use Gift Cards Wisely: If you received gift cards, use them to buy necessities so you can free up some of your own money. This can help stretch your budget further.
  6. Plan Your Shopping: Plan your shopping in advance to avoid impulse buys. Make a list of what you need and stick to it. This can help you stay focused and avoid unnecessary purchases.
  7. Buy Generic Brands: Often, generic brands are just as good as name brands but cost significantly less. This is especially true for grocery items. In many cases, the generic brand and the name brand item are virtually identical.
  8. Limit Online Shopping: It’s easy to spend more when shopping online. Try to limit your online shopping and only buy what you need. Consider deleting shopping apps from your phone to avoid temptation.
  9. Check Your Internet and Cable Bills: Similar to insurance, there might be cheaper plans available or discounts you can take advantage of. Many Canadian telecom companies offer bundle deals for internet, cable, and phone services.
  10. Take Advantage of Price Adjustments: Some retailers will refund you the difference if an item you bought goes on sale within a certain period after your purchase. Be sure to keep your receipts and check the store’s policy.

Income and Savings

  1. Extra Income: If possible, consider taking on temporary work or a part-time job to help pay off any holiday debt more quickly. If you have a skill or hobby that could earn you money, consider starting a side gig. For example, you could offer to shovel snow or tutor students in your area.
  2. Rent Out Extra Space: If you have an extra room or parking space, consider renting it out. This can provide a steady source of income. Websites like Airbnb make it easy to connect with potential renters. Just be sure to check local regulations and consider any potential tax implications.
  3. Use Bonuses Wisely: If you receive a year-end bonus from your employer, consider using it to pay down holiday debt or contribute to your holiday savings for next year. This can give you a head start on your savings goals.
  4. Sell Unused Items: If you received new items to replace old ones, consider selling the old items online. Platforms like Kijiji, Facebook Marketplace, or eBay are popular in Canada. This not only helps declutter your home but also provides a way to earn some extra cash.

Lifestyle Changes

  1. Consider a No-Spend Month: A no-spend month, where you only spend money on necessities, can be a great way to reset your spending habits and save money after the holidays.
  2. Cook at Home: Eating out can be expensive. Try cooking at home more often to save money. Cooking in bulk and freezing meals for later can save both time and money.
  3. Cut Back on Non-Essential Expenses: Consider reducing spending on non-essential items like dining out, entertainment, and luxury goods. Instead, plan activities that are free or low-cost. This can include outdoor activities, game nights with family, or potluck dinners with friends.
  4. Quit Expensive Habits: This might be a good time to quit expensive habits like smoking, drinking, or buying takeout coffee every day. Not only will this save you money, but it’s also beneficial for your health.

Resources and Services

  1. Utilize Community Resources: Many communities offer free or low-cost resources, such as food banks, clothing exchanges, and financial planning workshops. These resources can provide valuable support during your financial recovery.
  2. Use Public Libraries: Libraries are a great resource for free books, movies, and music. Some even offer free classes and events. Taking advantage of these resources can provide entertainment and education without the cost.

Mental Well-being

  1. Join a Support Group: Connecting with others who are also working towards financial recovery can provide emotional support, encouragement, and practical tips.
  2. Practice Gratitude: Regularly reflecting on what you’re grateful for can improve your mental well-being and help you maintain a positive outlook, even during financial recovery.
  3. Practice Mindfulness: Mindfulness can help reduce stress and anxiety, which can be beneficial for your mental well-being. It can also help you make more thoughtful and deliberate decisions, including financial ones.
  4. Take Breaks: Taking regular breaks can help reduce stress and improve your mental well-being.
  5. Stay Active: Regular physical activity can help reduce stress and improve your mood.
  6. Take Care of Your Mental Health: Financial stress can take a toll on your mental health. Don’t hesitate to seek help if you’re feeling overwhelmed. Many employers offer free or low-cost mental health resources.

Social, Family and Relationships

  1. Communicate Openly: Discuss your financial situation with your family and friends. They can provide emotional support and practical advice. Open communication can also prevent misunderstandings and ensure everyone is on the same page.
  2. Set Boundaries: If you’re often asked for financial help by friends or family, it’s okay to say no, especially if you’re trying to recover financially. It’s important to take care of your own financial health first. Setting clear boundaries can help maintain healthy relationships and prevent financial stress.
  3. Group Activities: Plan low-cost or free activities with friends and family. This could be a potluck dinner, a movie night at home, or a walk in the park. These activities can provide social interaction without the high cost of going out.
  4. Gift Exchanges: Instead of buying gifts for everyone in your family or friend group, suggest a gift exchange where everyone draws a name and buys a gift for that person only. This can significantly reduce the amount each person needs to spend and can make gift-giving more manageable and fun.

Household and Financial

  1. Automate Bill Payments: Setting up automatic payments can help ensure you don’t miss any payments and incur late fees. Most of the Canadian banks offer this feature. Just make sure to keep track of your account balance to avoid overdraft fees.
  2. Consolidate Your Debt: If you have multiple sources of debt, consolidating them into one payment could potentially lower your interest rates and make it easier to manage. Debt consolidation loans are offered by many banks and credit unions in Canada. However, it’s important to read the terms carefully and make sure that the loan will actually lower your overall payments.
  3. Refinance Your Mortgage: If interest rates have dropped, refinancing your mortgage could potentially lower your monthly payments and help you recover financially. This strategy can also be used to refinance high interest debt into your mortgage, which will save you money and improve your cash flow. Be sure to consult with a financial advisor or mortgage specialist to understand all the implications of refinancing.
  4. Review Your Auto and Home Insurance: Contact your insurance company to review your policies. There may be discounts or changes you can make to lower your premiums. For example, if you’ve recently upgraded the security system in your home, you might qualify for a discount on your home insurance.
  5. Energy Audit: Many utility companies offer free energy audits. They can identify ways you can reduce your energy usage and lower your bills. This can lead to significant savings over time, especially during the cold Canadian winters when energy use can spike.
  6. Home Energy Improvements: Making your home more energy-efficient can lower your utility bills. This could include things like insulating your home, using energy-efficient appliances, or installing a programmable thermostat. Many provinces in Canada offer rebates for energy-efficient home improvements.
  7. Maintain Your Car: Regular maintenance can prevent costly repairs down the line. Keeping your car in good condition can help you avoid unexpected expenses.
  8. Negotiate Interest Rates: If you have good credit, you might be able to negotiate lower interest rates on your credit cards or loans. This can result in significant savings over time.
  9. Stay Informed About Your Credit Score: A good credit score can save you money in the long run by helping you qualify for lower interest rates on loans and credit cards. In Canada, you can request a free copy of your credit report from credit reporting agencies like Equifax or TransUnion once per year.
  10. Review Your Tax Withholdings: If you typically get a large tax refund, consider adjusting your withholdings. You’ll get more money in your paycheck throughout the year, which can help cover holiday expenses.
  11. Take Advantage of Employer Matched Retirement Funds: If your employer offers to match your retirement fund contributions, make sure to contribute enough to get the full match. This is essentially free money that can help you reach your retirement savings goals faster.
  12. Use Financial Apps: There are several apps available that can help you track your income, spending, and savings. Some apps even offer personalized tips to help you save money.


Financial recovery is a process that requires careful planning, disciplined saving, and mindful spending. It’s crucial to get back on track promptly, especially to prepare for the next holiday season. Everyone’s path to financial recovery may vary, as each individual’s financial situation is unique. If unsure, consult with a financial advisor for personalized advice. Achieving financial stability is a journey that doesn’t happen overnight, but with consistency and discipline, you can make significant progress.

This article is brought to you by Ltd., a licensed mortgage brokerage in Ontario. For more insights into financial matters, feel free to explore our blog. If you have any questions about this topic, or any other topic about real estate financing, don’t hesitate to reach out to us through our website or call us at (519) 252-9665.

Please note that this information is current as of the time of writing and is intended for general informational purposes only. It should not be relied upon as financial advice. Always consult with a mortgage professional for advice tailored to your specific circumstances.

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