Financial Peace: Easing Money Worries in the New Year
The holiday season is an exciting time of the year, full of festive fun. However, no celebration is free everything comes with a cost, from presents to Christmas dinner, from New Year's parties to taking time off from work. All of this can add up to be quite expensive and leave you struggling in January. But there is no need to despair, there are things that you can do to manage your finances proactively!
If you are finding that money is tight in the New Year there are solutions to this, you need not cut out all luxuries. Budgeting is a useful tool in this case. Budgeting will help to break down all your earnings, necessary outgoings, savings and disposable income. Breaking this down into each part can help you see your financial situation to see what money is inaccessible and how much you can spend elsewhere. You can do this using a list or a spreadsheet, depending on what works best for you. This will reduce any anxiety about the unknown, laying out clearly what you must do and what you currently can and cannot afford to spend.
If you feel anxious about your financial situation there are many resources and sources of support out there. Firstly, your bank will be able to provide you with information on how to manage your money and if there is anything they can do to help. Money Helper and Money Saving Expert are websites that have an abundance of information about budgeting and financial advice and tips. There is even an option to live chat about money guidance.
After the Christmas holidays, many people find themselves short on money. Don’t worry, you are not alone and there are ways to manage this. Currently, you must be mindful of what you spend your money on. You will probably have to cut back on some luxuries at this time and prioritise essentials. However, you may not need to eliminate all indulgences. If you have a little extra money to spend, you may be able to buy yourself a small treat. But it is crucial to be sensible and see if the cost justifies the benefits. Our financial situation can have a large impact on our mental health. If money is short, it can cause lots of anxiety and stress. Managing your money through budgeting can reduce this. Also, simple things like filing bank statements and bills properly can help organise your thoughts too!
Struggling with finances can be very difficult, especially if those around you do not understand the stress you are facing. Informing those around you of your situation can help lift the burden. It can be hard to know how to talk to your children about this subject but, as always, honesty is the best way forward. You do not need to explain every detail, but making your child aware of the issue can help to understand any changes that are happening. It is important not to put pressure on them but instead, give them an understanding of the situation. This can help lighten the load and teach your children important financial literacy that they will need later in life.
The holidays and the aftermath can be a difficult time of year for many, bringing extra stress and worry. Following these tips and seeking advice can help manage your finances and the pressure this causes. Remember, to use tools to lessen your anxiety, mindfulness, journaling, speaking to friends and box-breathing may help!
A quick recap of the practical steps:
Create a Budget:
List all earnings and necessary outgoings.
Use a spreadsheet or list format to track savings and disposable income.
Visualise your financial situation to manage spending effectively.
Utilise Financial Resources:
Consult your bank for personalised money management advice.
Visit Money Helper and Money Saving Expert websites for tips and live chat guidance.
Be Mindful of Spending:
Prioritise essential expenses over luxuries.
Consider whether the cost of an indulgence is justified before purchasing.
Organise Financial Documents:
File bank statements and bills to keep your financial thoughts organised.
Communicate with Your Family:
Share financial challenges honestly with family members to distribute the emotional burden.
Educate your children about finances without causing them stress.
Seek Support:
Talk to friends and use mindfulness techniques like box-breathing to manage anxiety.
Learn and Practice Financial Literacy:
Use this time to understand and improve your financial knowledge.
Teach your children the value of money and the basics of budgeting.
