How to make your money stretch until January pay day
Katie Wright seeks some expert tips for surviving the skintest month of the year.
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Your support makes all the difference.January can feel like it drags on forever.
The Christmas decorations have come down, the festive fun is over – and having shelled out for presents/parties/travel (or all of the above), you’ve now got to make sure your bank balance stretches through the coldest, darkest and most depressing time of the year.
It’s even worse if, as is the case for lots of companies, December pay day came early (and to think it seemed like such a blessing at the time).
So, how do you survive January without going into the red? We asked personal finance experts for their advice….
Budget carefully
The first step to beating the January money blues is to sit down and thoroughly plan a budget for the month ahead.
“Figure out what money you have left after paying for presents, regular bills and buying necessities, such as food shopping and fuel for your home and car,” says Rita Kastrati, shopping and saving expert from bank of things Twig.
“From here, you can see what you’re left with and then divide the remainder between the days or weeks you have before your January pay day.”
Be realistic and work out where you can save on little luxuries, says Romi Savova, CEO of PensionBee (pensionbee.com): “Categorising your expenditures into ‘fixed’ and ‘flexible’ spending can help you work out what costs you’ll be able to cut down on and redirect your money to where it’s needed the most.”
Make a money-related resolution
“The cost-of-living crisis has left people feeling the pinch this year, so it’s not surprising that one in five people are planning to make a money related New Year’s Resolution for the first time in their life,” says Ross Duncton, head of EMEA marketing at Columbia Threadneedle Investments (columbiathreadneedle.com).
In a survey of 2,000 people, 27% said they are committed to saving more money in 2023, while 15% said they intend to set a stricter budget for the year.
Elle McAtamney from TopCashback (topcashback.co.uk) suggests going cold turkey on impulse buys: “When you do have to spend, make sure that you are doing so mindfully. Impulse buying may feel satisfying in the moment but won’t do anything to improve your bank balance – short or long term.”
Set no-spending days
Nick Drewe, a money saving expert at Wethrift (wethrift.com), says: “Whilst going 24 hours without spending a single penny might sound like an impossible task, with a bit of planning, it is much easier to achieve than you might think.”
Especially if you’re able to work from home, make your own lunch and have cosy nights in with Netflix. Quitting booze for Dry January could also help.
“If you keep up this practice for the whole of 2023, you may even find that come December, you have mastered going a whole week without parting with a single penny,” Drewe adds.
Keep an eye on your accounts
To make sure you stay on track with your budget, don’t forget to keep monitoring your bank account.
“Doing regular checks of your bank statement can help to make you aware of all your monthly outgoings, and you may even spot a few surprise ones,” says Drewe. “This is helpful for monitoring any subscription costs that have increased which you don’t feel you can justify anymore.”
Alternatively you might want to use a budgeting app or make your own spreadsheet, says Duncton: “Sometimes we forget about budgeting for the smaller spends in life, like a loved one’s birthday. It can be helpful to map finances out in an spreadsheet that can be revisited each month and amended as necessary.”
Sell second-hand
If you’re cutting back on socialising, why not use that spare time to have a sort out of your wardrobe and storage cupboards to see what hidden gems you can find?
“If you have unwanted gifts, electronics, books or even old CDs, give them a second life and get an instant cash injection,” says Kastrati, by listing them on second-hand websites.
Depop (depop.com) and Vinted (vinted.co.uk) are popular with fashion fans, while you can sell just about anything on eBay or Gumtree.
Kastrati adds: “Unlike other sites, Twig credits your account instantly, so you’ll see an immediate boost in funds, which could just be the lifeline you need.”
Frugal food shopping
With food prices on the rise, you can make a real difference to your budget by making sensible choices in terms of groceries and eating out.
“‘Paying as you go’ tends to lead to extra unnecessary spending, whether it be for a coffee or a sweet treat when buying your lunch,” says Drewe, so swap expensive lattes or muffins for homemade coffee and cake.
And Kastrati adds: “Don’t be ashamed to shop around for reduced items in the supermarket. It’s all about stretching the budget and being savvy. Batch-cooking food will also save money and time.”