The best ways to kick Blue Monday misery
interactive investor’s Myron Jobson says January is the perfect time to give your finances a boost with his top tips.
20th January 2025 09:41
by Myron Jobson from interactive investor
The third Monday of the new year – or 20 January this year – is often said to be the most depressing day of the year.
After lots of festive celebrations in December and many having to stretch their pay cheque for longer between December and January, it’s common to feel the pinch at this time of year. This can sometimes lead to poor financial decisions, which might put some on a bad financial foot within the first few weeks of the year.
Myron Jobson, Senior Personal Finance Analyst at interactive investor says that your financial position and mental health aren’t determined by a specific date in the year, but January is the perfect time to give your finances a boost with his top tips.
Get a budget in place
The first step should be to create a budget for yourself that reflects your income and expenses. Budgets aren’t a one-size-fits-all approach and will depend on your personal financial circumstances.
Track everything that you’re spending and the money that’s coming into your account. Then, you should identify areas where you can reduce spending easily, without compromising your essential needs. Anywhere you can limit discretionary expenses is key.
Once you have a budget in place, you should also look at where you could implement spending limits to make sure you don’t exceed your budget.
Review your bills
While you’re going through your spending, it’s a good idea to also review all your bills including utilities, insurance and subscriptions to identify any unnecessary charges or overcharges.
Where appropriate, you could consider contacting service providers to negotiate a better deal or enquire about any discounts that might be on offer – particularly in January. Providers may be willing to adjust their rates to retain customers.
Separately, if you are struggling to pay a bill, contact your provider as soon as possible who may be able to help set up a temporary solution or a payment plan.
Use discounts and compare prices
In January we are often flooded with discounts and promotions, and while unnecessary spending should be limited, there are some promotions that could be considered.
The best plan of action is, when a purchase is essential, take some time to research all your options - whether that’s comparing prices on different websites, or finding coupon codes. There are many online tools and apps that can help you find the best deals, including Honey and TopCashback.
Consider money-saving actions
Having a budget in place is a good guide to how much you want or are able to spend each month. However, it may mean that you need to review some of your spending habits, whether that’s reducing your daily coffee or the number of takeaways you order, for example.
You could consider preparing and cooking meals at home instead of dining out or buying lunch each day. Buying groceries in bulk and planning your meals can be cost effective.
Similarly, you could also consider things such as second-hand clothes shopping on sites like Vinted and DIY projects instead of paying for services. That could extend to home repairs, crafting or even creating personalised gifts.
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