It’s exciting to start a new year, but it can also be a stressful financial period. The December payday was early for many people and, combined with holiday costs and travel expenses, it makes January difficult to endure. Here are five tips to get you through the month on a smaller budget.

GET ORGANISED

Your first step is looking at your bank statements so you know where you’ve spent your money. Once you know the December damage you’re in a better position to plan a budget for January and the rest of the year. This is a good time to reassess your payments and see where you can cut unnecessary costs or reduce your monthly expenses by finding more affordable options.

SET A BUDGET

Because there’s a longer gap between your December and January paydays, and as you would have spent more over the festive season than normal months, you should be a bit stricter with your January budget. Start by paying all your essentials – from school fees to household bills – and then you’re in a better position to plan a budget for the month and the rest of the year.

RETHINK LUXURIES

When your finances are tight, you need to figure out where you can cut back on unnecessary luxury expenses. Have coffee at the office and forgo your daily visit to your favourite coffee shop, cancel your gym membership if you don’t use it regularly, make meals at home rather than eating out, and cancel monthly subscription services until your bank account looks healthier.

CASH PAYMENTS

It’s difficult to keep track of what you’ve paid for when you use plastic or pay on credit, so leave your debit and credit cards at home. Where possible, pay for items using cash. Not only does this assist you to monitor what you spend, but it helps you to stick to your budget as it prevents you from buying things you don’t need or haven’t planned for.

SHORT-TERM LOANS

Organising a quick cash loan might seem like it’s a good way for you to solve your January money problems, but you are only making February and the subsequent months a lot more difficult. When you get a short-term loan they come with high interest rates and often have hidden charges, which means you’ll only end up in more debt than when you started.

The beginning of the year is also a good time to look at your insurance policies and make any necessary changes or updates. Speak to your Indwe advisor on 0860 13 13 14 to ensure that you are adequately covered for 2017.