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How Do You Survive The ‘January Money Hangover’?

Ranging from 31st January tax deadlines to never-ending credit bills, New Year welcomes one with new responsibilities amid the cheer. Dealing with finances right after an expensive month is challenging and exhausting.

Moreover, things remain a little messy until the January payday. Resorting to usual finances from an enjoyment phase is tricky. However, you can achieve the best financial equilibrium with the right initiatives.

Suppose you find it hard to finance the requirements, re-plan finances. The blog lists the best ways to survive the January Financial hangover.

6 strategies to be pennywise with the hardest month

It is easier to overspend in December, but with January, one feels the pinch. It feels like an eternity to reach the January payday. However, you can stretch your money until then. The below-listed tips will keep you afloat this month:

1) Simplify outgoings with a budget

Some expenses like mortgage, rent, groceries, Council tax and utility bills are most prominent. You cannot ignore them. Afterwards, expenses like- shopping, new credit card purchases and dining out follow.  You can save for the most prominent spending by budgeting.

For this, cut back on things that do not meet the important category. Instead, dedicate the sum towards meeting the liabilities. This is because some liabilities require timely payment – council tax, rent, insurance premiums and utility bills.  Otherwise, penalties may make it challenging to pay.

Budgeting this way will help you manage the bills effortlessly. Moreover, check the New Year discounts available on bill payments through credit cards. It further reduces the overall liability.

2) Check out two-for-one deals

Organising a cheap night out on the 1st of January seems a bit too much. It is because most restaurants are occupied, and one hardly spots a cheap dinner thing. However, some restaurants offer 2 for one meal discounts. Most new restaurants launch such schemes. If you want to try something new, this may work out.

You may take the advantage of paying only for a meal instead of two. It may help you save some down the lane. This is because the offer usually lasts for up to 2 weeks to attract new customers. In this way, you can celebrate the New Year without spending much.

3) Reduce transportation costs

It is one of the best ways to improve your financials. Most individuals studying at university or simply moving to an office use transportation to reach their destination. Sometimes, the costs exceed the expectations. It is especially true when the destination is far from your place. In this situation, analyse the best ways to reduce the transportation costs.

 For example, instead of driving a car alone, you can pool a car. Moreover, you can use a bicycle to reach the place instead of a car. It is environmentally friendly and helps you save on fuel expenses.

If travelling by bus regularly, use a bus card that grants you a concession on the fare. Identify the cheapest card to travel and reach the destination. It will help you save some. However, if nearing the month’s end with minimal cash and needs to update the card, get a bad credit loan from a direct lender with no guarantor facility.

It is helpful because, with debts and limited cash, your credit score drops. Getting a guarantor is challenging in this case. Thus, this facility helps you finance any short-term expense on the same day without cumbersome requirements.

4) Avoid falling for gym subscriptions

With every New Year, individuals think of shelling off some weight. Well, it is good for your belly but not your piggy bank. It may affect your finances. This is because, with a maximum number of individuals taking gym memberships, the costs rise.

Thus, applying for one becomes challenging. Alternatively, if you spot a cheap membership for 6 months, it is also a red warning. It is because you never know whether you can make it to the gym for 6months straight.

It is thus better to avoid that too. Instead, wait and analyse your life schedule. Identify whether you can dedicate some time to the gym, given the strict schedule. It is because losing weight requires discipline. If unsure about the same, avoid falling for it.

5) Switch subscriptions and credit cards

Utility bill subscriptions consume most of your scheduled expenses. Thus, analyse the amount that goes towards the payments every month. Check whether you can optimise this expense. Most individuals do so by switching to an affordable deal. For example, if your electricity utilisation is low but you are paying more bills, analyse the subscriber offering better rates.

Similarly, check credit cards offering better interest rates you hold. You can choose a 0% interest credit card or benefit from the introductory period. You can benefit from it by choosing a 0% balance transfer credit card, which allows you to pay your debts interest-free.

Otherwise, you can purchase something and clear the dues by the end of the introductory period without interest costs. It is one of the best ways to save more on credit card-related purchases.

6) Sell items and start a side hustle

It is one of the smartest ways to benefit from the unused items in your house. You can earn by selling some old stuff or decorative items you didn’t use for Christmas. Explore the books, apparel, and antiques that fill up your house space. Things that you do not need anymore can help someone else. Thus, analyse those things and price them according to the market value and condition. Over-priced items do not sell quickly. Thus, keep them realistic.

Another way to earn more is by taking up a part-time job. Yes, some short-term jobs may assist you in managing living expenses. You may earn according to your ability to manage time on your regular job and part-time work. It acts as a cushion to meet your expenses.

However, if an emergency pops up while searching for part-time jobs, do not panic. Instead, search for external facilities that help you with compromised credit scores and finances. Options like very bad credit loans with no guarantor from a direct lender may help. It is an individual way to finance emergencies despite a low credit history. Poor credit score restrains one from quick cash help. However, some loan lenders deal with such profiles and help counter needs immediately.

Bottom line

While these tips may help you remain below the means for the January period, avoid instinctual purchases. It is where most individuals fail and eventually disturbs their budget. Having a disciplined expenditure structure helps you track finances better and boosts savings. It is the primary goal of every person facing the January money hangover. Which of these do you like the most? Comment.