For most people, January is looked at favourably. A new year is that fresh start where people can commit to their goals and make amends for their mistakes. It is a motivational month that is encapsulated by the arrival of a new calendar. Yet, the reality is a far cry from this with millions of people finding it hard to survive this first month.
To give it to you in facts and figures, over 30% of people feel pressured to spend more than they could afford over the festive period, one in ten people fall further into debt and many people struggle to keep up with the payments as a result of getting paid earlier in December than usual.
In fact, one in four people are said to struggle this month, which makes any idea that is is a happy occasion and a fresh start a fabrication of the highest order.
With that in mind, we have decided to do what we can by coming up with ways you can better cope with the financial difficulties you may be facing. The important thing to remember is, don’t panic and don’t hide. No matter your circumstance, it is totally fixable.
- Essentials Only, Please
It is never easy cutting life’s luxuries out of yours, but that is the first thing you have to do. So, go through your last six months of statements and note down everything you are repeatedly buying and how much they cost and then be really brutal about what needs to stay and what can go. The good news is, January is a boring month anyway, meaning there is no need to spend frivolously. Use this to get yourself set up financially for the rest of the year.
- No More Credit Cards
When people say dry-January, why not make that meaning two-fold. Cut out booze (which is an unnecessary expenditure) and, unless you are paying it off in full at the end of each month, cut out your credit card too, which you can learn all about reading this article at www.thebalance.com/. Cash, debit card and checks are all you should be using. That way you can’t spend more than you have. It’s very simple. You’ve taken the temptation out of your spending.
- Consider Refinancing
A lot of people think a) refinancing isn’t possible and b) refinancing isn’t wise, but both of these are totally subjective and could, in fact, be a very wise move, even if you have a poor credit rating, as www.polarmortgages.co.uk/ proves. So long as you are comfortable in your home and planning to be there for a few more years, you may find the current prime rate loans do you a favour and actually reduce your monthly repayments. Now wouldn’t that be nice?
- Ensure Your Insurance Is Right
One of the most common commonly cited areas where people waste money is on their insurance cover. They pay more than they have to and that can equate to hundreds. What you want is enough to cover you at the best price you can find. So, shop around on comparison websites, raise the deductibles to the highest amount you can cover without fuss and make sure there are no hidden extras you don’t need. You’ll be shocked at the savings.