After December comes January which for most people tends to be Njaanuary. To many, the month seems to have more days than any month. It is a month in which financial difficulties are also severe. This can be attributed to the fact that there are the normal bills to be paid and utility services contracts to be renewed. Add these to the fact that the festive season in December is a spending season and it is no wonder that people get themselves in a financial crisis. With this being the case, how do you avoid being broke in January and the New Year?
To avoid getting financially drained in the month of January, it will require you to plan ahead and remain committed to the plans you make. Discipline and self-motivation are key. Below are some few things which if implemented can help you avoid being broke not only in January but throughout the year.
Set Your Spending Limits
It is hard to escape Christmas without issuing gifts to friends and families. There also are the gatherings and skyrocketing fares that are characteristic of this season. To avoid overspending, try and set some spending limit. Set aside a given amount of money which you wish to spend and do not exceed it by any means.
Due to the commercialization of the Christmas and New Year season, most financial institutions are willing to offer short term loans and holiday packages. These though tend to charge high interest loans which will see you cough out much more than you borrowed. In case you thing you might need extra cash, make arrangements for alternative sources of income. This could be from selling off things you do not use any more.
Avoid the Dreaded D
While there are more than one dreaded D over this season including Drinking, the worst of them all that directly relates to getting broke in January would be falling into debt. Whatever you do, do not borrow money from family and friends to blow up in the festivities as this will leave you broke in the New Year.
This is closely related to taking loans. Only use what you have and remember not to spend beyond your set limit. If you can, avoid the use of credit cards too.
Avoid Buying Clothes
May be this steamed out from the childhood tradition of receiving those Cinderella dresses and great suits for the boys or we just feel an urge to look good in the festive gathering. As a result, the seller will most of the times have hiked the prices of basic commodities with cost of clothes rising to unimaginable levels. If you can, avoid shopping for clothes around the festive season. If you have to, do it early enough and be certain to check out stores with great bargains.
Pay Your Bills before the Festivities
Most companies tend to pay their employees before the year ends. As such, by the time people break for the holiday they have their salaries with them. This could give them an illusion of having more money than they usually have in other months. What escapes most employees is the fact that it will take longer for the next payday to come.
To avoid financial struggles come January, pay your utility bills, house rent, school fees and supplies for the kids and any other bill before Christmas. This way you will not have much money on you which will ensure you don’t misuse any cash. Come January you your bills will have been catered for and thus the strain will be less.
Travel Early or Avoid Traveling
If you can, ensure that you travel early enough. Do not wait until the last minute to go upcountry. Instead travel a week or so before. This will help save the amount you spend on fare. Do the same while going back to your place of residence. Where this is not possible and you are determined to prevent getting broke come January, do not travel.
If you put these tips on how to avoid being broke in January and the New Year in place, you are certain that your first month of the year will be easy and there will be no need for you to break your piggy bank.