Dealing with the financial pressures after Christmas
Catherine Alexander
Partner
No matter how hard we try, many of us overspend at Christmas. In an ideal world, we've all budgeted and taken the opportunity to think about more thoughtful and creative gifts for our friends and family, but with children to buy for and the pressures of work and time constraints, it's all too easy to fall off of your carefully budgeted wagon. Now we are approaching Christmas, let's look at some of the things which could be useful once the festivities have come to an end.
The first thing is 'don't give yourself a hard time', you deserved to have a great Christmas with family and friends. Overspending is common and if you have you are not alone. Now is the time to look forward and take time to reflect and budget for the new year.
Make an assessment of where you currently are financially, how much you owe, and when it needs to be paid back. Prioritise essential expenditure first and make sure that you have enough put aside in your budget to cover these first, once this is done you can budget your personal spending accordingly. This could include putting small amounts away every month, then you will have a whole year’s worth of savings to overindulge in Christmas next year without putting too much pressure on your bank account.
Take advantage of the January sales to find deals on retail and grocery shopping, or buy second-hand (saving you money as well as helping the planet). Selling unwanted items online is also a good way of making a little extra money, or saving unwanted gifts for gifting throughout the year (instead of buying new) e.g., birthdays, thank you gifts.
Try to avoid the lure of a payday loan. These loans often have high interest rates and can be difficult to repay. It’s much better to take a look at your finances and see if there are any other ways you can get the money you need.
Importantly, look after yourself. In January, it's all too common for depression and anxiety to set in after Christmas over-spending. Try to remember that the start of a new year is a fresh slate, and with initiatives around like Dry January and Veganuary, a healthy body and bank balance may just be the key to a healthy mind.
If you are struggling and don’t know how to manage the financial pressures of Christmas, it can be helpful to talk to someone about how you are feeling, or ask for expert help. There are many ways to get free financial advice and debt consultation: NGOs, commercial organisations, and Government-backed services. Many people feel more in control of their finances after getting professional financial advice.
With a few simple changes and a bit of organisation, you can start 2024 with confidence and look forward to the year ahead.
This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice.
