I’m heading into the New Year feeling more stressed than festive. Between presents, food, travel and trying to give everyone a decent Christmas, I’ve spent far more than I planned.
Some of it went on the credit card and some came straight out of savings I’d worked hard to build up.
We’re not reckless with money, but income can be uneven and there always seems to be something else that crops up. I don’t want to spend the next few months playing catch-up again. How do I recover from this Christmas and put a better plan in place for next year?
ANSWER: First, take a breath. You’re far from alone. For many households, particularly where income rises and falls through the year, Christmas is often the point where financial pressure finally surfaces. It’s not that people don’t plan, it’s that December arrives faster than expected, and the spending is concentrated into a short, intense period.
The most important thing right now is not to beat yourself up. Christmas overspend is rarely about poor discipline. More often, it’s a cashflow issue. Too much money going out at once, without enough having been set aside in advance.
Step one is recovery
In January, your focus should be on stabilising, not drastic cutbacks. List exactly where you stand: what’s on the credit card, what came out of savings, and what regular bills are due over the next few months. This doesn’t need to be complicated, a simple list or spreadsheet is enough.
The aim is clarity
Financial stress thrives in the gaps where information is missing. If there is short-term pressure, be realistic. Clearing a credit card over six months is better than struggling for two and giving up. Where income is uneven, as it often is in farming or self-employed households, spreading repayments to match cash coming in reduces stress and avoids panic decisions.
Once things are steady, that’s when you should start planning for next Christmas – even though it feels a long way off.
Make a plan
The mistake most people make is treating Christmas as a one-off event. In reality, it’s a predictable annual cost, just like insurance or back-to-school expenses. When you reframe it that way, the solution becomes clearer.
Start by working out roughly how much you spent this Christmas. Include everything: presents, food, travel, nights out, contributions, even the smaller bits that are easy to forget. Many households are surprised by the final figure. Let’s say it comes to €1,200. That sounds daunting until you spread it out.
Set up a separate savings pot and divide the cost across the year. €1,200 over 12 months is €100 a month, or about €25 a week. For households with variable income, it can help to save more in stronger months and less in quieter ones. The key is that the money is ring-fenced and not available for day-to-day spending.
This is where basic cashflow planning comes in. You don’t need a complex budget, but you do need to know when money is coming in and when it’s going out. Looking back at last year’s bank statements can be very revealing.
They show patterns – quieter months, heavier spending periods – that can help you plan more realistically.
It’s also important to include household spending in any budget, not just business or farm costs. Many people underestimate what it costs to run the house because it’s paid in bits and pieces. When those costs aren’t accounted for, seasonal expenses like Christmas end up being funded by savings or credit instead.
Accept that plans aren’t about perfection. You may still spend a little more than expected some years.
The difference is that, with a plan, the impact is manageable and doesn’t spill into the months that follow.
If this feels overwhelming, you don’t have to do it alone. Sitting down with an adviser to talk through household and farm cashflow can bring huge peace of mind.
The goal isn’t to restrict your life, it’s to give you confidence that when Christmas comes around again, you’re ready for it.
Martin Glennon, head of financial planning at ifac
Martin Glennon is head of financial
planning at ifac, the professional
services firm for farming, food and
agribusiness
I’m heading into the New Year feeling more stressed than festive. Between presents, food, travel and trying to give everyone a decent Christmas, I’ve spent far more than I planned.
Some of it went on the credit card and some came straight out of savings I’d worked hard to build up.
We’re not reckless with money, but income can be uneven and there always seems to be something else that crops up. I don’t want to spend the next few months playing catch-up again. How do I recover from this Christmas and put a better plan in place for next year?
ANSWER: First, take a breath. You’re far from alone. For many households, particularly where income rises and falls through the year, Christmas is often the point where financial pressure finally surfaces. It’s not that people don’t plan, it’s that December arrives faster than expected, and the spending is concentrated into a short, intense period.
The most important thing right now is not to beat yourself up. Christmas overspend is rarely about poor discipline. More often, it’s a cashflow issue. Too much money going out at once, without enough having been set aside in advance.
Step one is recovery
In January, your focus should be on stabilising, not drastic cutbacks. List exactly where you stand: what’s on the credit card, what came out of savings, and what regular bills are due over the next few months. This doesn’t need to be complicated, a simple list or spreadsheet is enough.
The aim is clarity
Financial stress thrives in the gaps where information is missing. If there is short-term pressure, be realistic. Clearing a credit card over six months is better than struggling for two and giving up. Where income is uneven, as it often is in farming or self-employed households, spreading repayments to match cash coming in reduces stress and avoids panic decisions.
Once things are steady, that’s when you should start planning for next Christmas – even though it feels a long way off.
Make a plan
The mistake most people make is treating Christmas as a one-off event. In reality, it’s a predictable annual cost, just like insurance or back-to-school expenses. When you reframe it that way, the solution becomes clearer.
Start by working out roughly how much you spent this Christmas. Include everything: presents, food, travel, nights out, contributions, even the smaller bits that are easy to forget. Many households are surprised by the final figure. Let’s say it comes to €1,200. That sounds daunting until you spread it out.
Set up a separate savings pot and divide the cost across the year. €1,200 over 12 months is €100 a month, or about €25 a week. For households with variable income, it can help to save more in stronger months and less in quieter ones. The key is that the money is ring-fenced and not available for day-to-day spending.
This is where basic cashflow planning comes in. You don’t need a complex budget, but you do need to know when money is coming in and when it’s going out. Looking back at last year’s bank statements can be very revealing.
They show patterns – quieter months, heavier spending periods – that can help you plan more realistically.
It’s also important to include household spending in any budget, not just business or farm costs. Many people underestimate what it costs to run the house because it’s paid in bits and pieces. When those costs aren’t accounted for, seasonal expenses like Christmas end up being funded by savings or credit instead.
Accept that plans aren’t about perfection. You may still spend a little more than expected some years.
The difference is that, with a plan, the impact is manageable and doesn’t spill into the months that follow.
If this feels overwhelming, you don’t have to do it alone. Sitting down with an adviser to talk through household and farm cashflow can bring huge peace of mind.
The goal isn’t to restrict your life, it’s to give you confidence that when Christmas comes around again, you’re ready for it.
Martin Glennon, head of financial planning at ifac
Martin Glennon is head of financial
planning at ifac, the professional
services firm for farming, food and
agribusiness
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