Most of us know January to be the month of new beginnings, new resolutions and hopefully, better decisions. You can have a new beginning or make new resolutions at any point in the year, but there’s just something special about beginning a new year with new things. Don’t you agree?
As brand new and exciting as January can feel, it can also feel like a long, never-ending trip that would have you asking “When will this month finish?” every other day. January can also be very financially challenging, but only if you don’t prepare properly. Trust us when we say being broke is not a rite of passage to usher you into a new year. It’s the result of poor planning.
Now that you know that it is indeed possible to pass through January without losing all your money, here’s how to avoid going broke after December:
1. Plan ahead: Don’t let this “Detty December” devastate your account this year. December is the end of the year, not the end of the world. January will come and your bills are going to need tending to. Make plans to have them sorted so you don’t get stranded in the first month of the year. It’s very easy to fall into the trap of living beyond your means in a season like this. Plan everything: your money, your outings and even your time so you’re not caught unawares. Know how many parties you’re okay with attending and how much you’re willing to spend.
2. Resist the urge to shop for things you don’t need: There’s a lot of nostalgia in December because many people reflect on the year they’ve had and the decisions they’ve made. You may be tempted to spend a lot of money to reward yourself for getting through the year. While there’s nothing wrong with wanting to get yourself something nice, you need to think about the future. Don’t spend so much in December that you start the new year on a rough note.
3. Save, save and save: This one’s a no-brainer. January is a long month. Save some money now to get yourself through it. Even if you don’t have any savings at all, it’s not too late to start. December can be financially tasking because of things like gift shopping and social events, and you need to give yourself as much of a fighting chance as possible to help you survive January easily.
4. Make financial Resolutions for 2022: As you make plans and changes for the new year, don’t neglect your money habits. Let your finances feel the effects of “New year, new me” too. Examine your spending and saving habits. What needs to change completely and what needs to be improved? You’d benefit a lot from making these decisions early enough and actually sticking to them.
5. Explore other sources of income: Nothing feels better than having money flowing in from more than one source. Wouldn’t that be amazing to have? Try to figure out how else you can make money outside what you already do. Do you want to start a side hustle? Maybe even start investing some money? Think about it this Christmas. It just might be the key to turning your finances around in 2022.
6. Avoid debt: If you currently have no debt to sort out, why should you start at Christmas? Whether it’s buying things on credit or borrowing money for enjoyment, do everything within your power to avoid debt. Nothing weighs you down like having to start January worrying about all the people you have to pay back.
December is a festive time and you might find yourself feeling extra generous to other people and towards yourself, and there’s nothing wrong with that. You may need to buy gifts, attend events and we all know these things cost money. In fact, there are so many ways to go broke at a time like this. However, you need to consider your pocket even in the festivities and make a proper budget. No go dey do pass yourself.
January is a long road and we’re all about helping you arrive safely at the end. Now’s not a bad time to plan and save money with our savings options Vault, Pace and Flex, and even earn decent interest.
Begin your 2022 on a fresh, financially wise note. Download Crowdyvest app and set up a savings plan now!