Let’s face it: January is the worst month of the year…
With the New Year beginning we all know we have to face the toughest month of the year…January!
Before I start sharing tips on how to stick to your budget in January, I would like to say compliments of the New Year.
We all know January likes to drag its feet. It can last for two months.
Here are some tips you need to survive the month of January in 2022:
Start budgeting
One New Year’s resolution you need to have is making a budget and sticking to it.
It’s so easy to quickly spend more than you have coming in, which leads to the inevitable overdraft fees or credit card charges. By creating a budget and sticking to it, helps you to stay on top of things.
With a budget you’re essential tell your money where to go. Don’t forget every Rand counts.
If you don’t plan out your finances by budgeting, it will create all manner of problems if money is tight.
The how to budget like a pro course will certainly help you get started.
Avoid buying lunch
With the holidays being over that means back to work for most of us and we usually find ourselves surrounded by a number of restaurants, cafés and takeaway stops that make your lunch options so tempting.
There’s nothing wrong with treating yourself but if you want to make your money stretch a little, pack something from home instead – this includes breakfast if you skip it before your commute, take snacks and refreshments.
Leftovers are your friend.
Come month end, you can treat yourself all you like.
Avoid sales
Unless you’re buying grocery items or household products that have been discounted and that you actually need on a day-to-day basis, chances are that you’re being tricked into spending money you can barely spare on things you don’t need right now.
There will be many more sales, and chances are at times where you might be in a better place financially.
If its not on your budget it’s an impulse buy.
Use cash instead of your card
Go to a (safe) ATM and withdraw all of the money you have left for the month. Work out how many days this money needs to last you, and break up your cash into a physical daily or weekly budget.
Put that card away.
It’s tempting to purchase something and tell yourself that you’re going to pay it off in instalments, but if you’re constantly buying on credit, you’ll struggle to get out of the debt cycle you’ve inadvertently created for yourself.
(Read: debt counselling Vs debt consolidation loan)
Also, if you have to pay interest, think about how much extra you’re paying.
If you want to go out, try going out to places where you can hang out for free
Go out and pack a picnic from whatever you have in your kitchen. Get a group of friends together and head to places like the beach or any local hiking spots where you can braai and chill together.
If that doesn’t sound like your cup of tea, there are still plenty of places you can check out that won’t cost you a thing.
Alternatively, you can choose to stay in. You’ve already paid up your Netflix or Showmax subscription right?
Have a movie night.
Stay home! Cook enough food. Make enough to last the week. Invite friends over for low-cost movie nights and eat home-made popcorn, which is affordable if you are feeling social.”
You can also, use this time to catch up on activities you’ve been meaning to get around to.
You can start tackling “all your unwatched movies and unread books
Shop with a list
It’s all about economising what you’re buying and the key here is clearly to think ahead. Buy in bulk and don’t go to the shop more than once a week without having a solid idea of what it is you need.
Shopping with a list helps you to stay on budget. You will be able to avoid unnecessary expenses.
Know your weaknesses. If you are an impulse buyer then you have to plan ahead to avoid falling for the trap.
Automate it
One of the best ways to avoid overspending is automating your debts, savings or expenses. It will help you to stay on track of your finances.
It takes away the stress of having to remember who gets paid when, and how much. Learn to automate your budget.
Try to save on food costs
Plan meals ahead of time so you can buy in bulk. Go for meals with cheap ingredients that don’t use a lot of electricity. So, stay away from bakes and rather do things like making a huge pot of rice and mixing it with frozen veg or making a giant pot of soup that you can freeze in little re-usable bags.
Buy the exact ingredients for those meals – don’t pop in and out of shops spending R50 here and R20 there on unnecessary items.
Buy fruit and veg from the market traders at the station. Buy foods that last. Stock up on hardy vegetables that will hold in the fridge.
Sell it
Do a spring clean (well, late-summer clean, I guess) and sell a few old gadgets you don’t use any more. Your house is already filled with stuff, so spend some time organising it, this will remind you of all the food that’s hidden at the back of your pantry that you can eat, and stuff you already have that you can entertain yourself with because you’re too skint to go out.
While you’re in the process of slashing your weekly shopping bill you could raise some extra cash by selling your unwanted wares.
Online auctions and markets such as eBay or Facebook market are probably the easiest way to get shot of items that are just getting in the way, but there are plenty of others out there for anyone looking to have a proper clear-out.
Be creative about ways to add more cash to your pile. Pick up a few hours of freelance work using a site like Fiverr, Upwork or offer odd jobs to friends and family using whatever skills you have (maybe you’re great at knitting tiny jerseys for goldfish, for instance).
(Take free course: 7Rs to wealth creation)
Need quick cash?
This has to be your last resort. You can apply for a small loan with Fasta or Mpowa. They both offer some of the best deals when it comes to loans. Do some research before taking out a loan.
(Read: Things to lookout: Personal Loans)
When taking out a loan make sure you take out an amount that you will be able to payout by the end of January. By doing so you avoid paying a high interest rate. Take out what you can afford.
With advice like this, you’ll definitely be able to make it through the rest of January. What are some of your money-saving tips for when the going gets tough? Share with us and we could feature it in a follow up article.
