How to survive the January 'money hangover'
Posted by siteadmin on Tuesday 3rd of January 2023.
As the holiday season comes to an end, many of us are considering how we can tighten the reins on our spending until payday, so we can budget wisely this year.
No matter how much money you spent over the holiday season, creating a new budget will make it easier for you to keep track of your spending in the future and help you to achieve your financial objectives this year.
A budget is a spending plan based on your income and expenses for a set period of time, typically per month. Budgets might be perceived as limiting, but they also create a great deal of freedom, since they provide you with the reassurance that you have the money to spend on the things you really want.
Here we will discuss some ways that you can survive the ‘money hangover’ of dreaded January after all of your festive spending.
1. Limit your spending
Trying sticking to carrying cash, at least until you’re back on track. It can be tougher to part with cash, so you may be less likely to overspend than if you use plastic.
It’s important to avoid ‘frivolous’ post-holiday shopping in January. Most retailers will mark prices down to a point it may seem a waste to pass up on the deal. However, it can cause a downhill spiral of spending without realising actually how much you’re spending by the end of it.
For sales, we always suggest, if you needed it anyway, it can be worth purchasing, but otherwise it’s just additional spending – not saving. In other words, if you don’t really need another clearance Christmas tree, skip it for now.
2. Add up your income
After deducting taxes, student loan repayments, pension contributions and any other deductions before the pay lands in your account, list your usual income from work. Next, include any additional sources of income, such as savings, investments, self-employment, etc.
To get an indication of what you could expect to earn in the upcoming months, figure out how much you earned during the last three months and record the average.
3. Sell, sell, sell
You can generate some extra income by selling your unwanted goods so you can earn an extra income.
You could certainly wait until the summer to organise your space, get up on Sunday morning and flog your undesirable items at a boot sale. But why wait when you can complete it all while lounging in your own bed?
The simplest way to get rid of items that are simply taking up space is through online auctions and markets like eBay, Depop or Vinted, but there are many other options available for anyone wishing to have a thorough clear-out.
4. Cutting out unnecessary purchases
Do you buy coffees at work or spend money on your lunch? Although it’s good to treat yourself every now and again, it’s important to recognise when these purchases are unnecessary.
For example, instead of buying coffee before work and spending up to £4.50 each time, invest in a travel mug and make a coffee before you leave the house, and it will keep it nice and warm. Instead of buying meal deals or other lunches daily, take leftovers from dinner in for lunch or make a sandwich to take with you – this not only saves money in the long run but also helps avoid food waste.
Last but not least, avoid making the New Year's resolution to join a gym if you’re not going to make use of it. Many people see the New Year as an opportunity to get in shape and lose weight, but while starting or maintaining a gym membership will undoubtedly cost you money, consider cheaper exercise classes, where you only pay each time you attend or try running as the days get longer.
For more information on managing your finances after the holiday season, book an appointment with us.
Disclaimer: Whateley Wealth Management is not responsible for any external site content.
Disclaimer: The purpose of this blog is to provide generic information and should not be interpreted as a personal recommendation or advice.
picture sources:
https://www.pexels.com/photo/cash-coins-money-pattern-259165/
https://www.pexels.com/photo/grey-metal-case-of-hundred-dollar-bills-164652/
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