Start the new year on a positive note with small, actionable steps to beat the January blues.
After the excitement of Christmas, many of us may be feeling the financial strain as we face the reality of festive spending. On average, UK households spend £713 more in December—a 29% increase compared to a typical month—which can lead to feelings of stress and anxiety as we head into the new year.
Christmas is a time for giving, and it’s okay if you’ve spent a little more than planned. Instead of feeling overwhelmed by the January blues, use this time as an opportunity to reset, reflect, and plan for a brighter financial year ahead. Here are some tips to help you regain control and start the new year on a positive note.
Review your spending habits for the New Year
Start by taking a moment to reflect on your spending habits over the past year without guilt. Everyone deserves to enjoy the festive season, but understanding where your money went can help you plan. Start by reviewing your bank statements or using budgeting tools like MoneyHelper’s free budget planner to identify patterns in your spending. Were there larger-than-usual purchases or habits that stretched your finances? Pinpointing these areas can help you better prepare for next year’s expenses and stick to your financial goals.
Once you’ve reviewed your spending, prioritise essential bills like rent, mortgage, and utilities, ensuring these are covered first. By focusing on these key expenses, you can avoid unnecessary stress and take control of your financial priorities for the new year.
Make Christmas debt manageable
While 39% of Brits dip into their savings to cover the cost of Christmas, for many, building savings isn’t always an option. This often leads to relying on credit-based solutions like Buy-Now-Pay-Later schemes, overdrafts, or credit cards, which can quickly add up and make the start of the new year feel like an uphill battle, On average, people in the UK take on £439 of debt over the festive period,
If you’re struggling to manage multiple repayments or high-interest credit products, refinancing your debt with a single loan could help. By merging your debts into one manageable payment, you can regain control of your finances, reduce the stress of dealing with multiple bills, and spread the cost of Christmas into more affordable repayments.
With GWCU’s Consolidation Loan, you can start the year on a stronger financial footing and leave the Christmas debt behind. Find out more and see if a Consolidation Loan could be right for you by checking out this blog post: Could debt consolidation help you cope with the rising cost of living?
Get a head start- Plan for next Christmas now
One of the best ways to avoid financial stress in the future is to start planning and saving now. Even setting aside a small amount can make a big difference by the time next December rolls around.
Consider opening a high-interest savings account, like our 3.5% Cash ISA, to help your money grow while you save. A Cash ISA allows you to earn tax-free interest on your savings, and with our competitive rate, you’ll see your savings build up faster.
To make saving easier and more manageable, take advantage of our Savings Tracker, available on the Member Portal. This handy tool lets you set savings goals and track your progress over time. It even calculates how much you’ll need to save each week or month to reach your target.
By starting now, you can spread the cost of Christmas over the year, giving yourself the gift of less financial stress and more peace of mind when the holiday season arrives.
Prioritise mental health for a positive January
While the festive season can be a joyful time, it can also bring added stress and anxiety. Whether its financial pressures being carried over to the new year or a feeling of overwhelm from the post-Christmas reset, it’s important to acknowledge that this season can be difficult for many. If you’re struggling, you’re not alone and there are plenty of resources to help. Mind’s Christmas and Mental Health Guide offers practical advice for managing stress, while CALM’s guide to an anxious Christmas provides tips for coping with emotional and financial challenges, along with links to useful support services.
It’s okay to feel overwhelmed during this time of year. Prioritising your mental health is just as important as everything else on your to-do list, so take a moment to pause, breathe, and focus on what you need to get through the new year. Remember, support is always there when you need it.
