A survey says it usually takes the British populace an average of 4 days to get ‘back in the saddle’ after the Christmas holiday season. Whether it takes you 4, 14 or 24 days to get rid of the ‘January blues’, just make sure your recovery includes financial recovery as well … but before you can recover you’ve got to discover first.
January has been dubbed the ‘longest month of the year’ due mostly to our overspending during the festive period; so many people are forced to be wiser with money during the month. My question is “if you know what to do to survive January, why not use the same new habits throughout the year?”.
The Bible says in Proverbs 27:23-24 “Be diligent to know the state of your flocks, and attend to your herds; for riches are not forever, nor does a crown endure to all generation”. If things are going to be better for you financially this year knowing where you are is where you need to begin.
To discover where you are, gather all your paperwork and make a note of every important financial anniversary in a diary. These documents should include your home and car insurance policy renewal dates, vehicle tax, MoT, breakdown cover, TV
From those same documents, you can discover what you spent money on last year. If you use budgeting software, it is possible to pull up both annual and monthly data and see your expenses in categories. Can you afford to continue spending like that? It is important that you know your spending habits. Understanding your spending habits is critical to creating a strong financial foundation as you can plan for your immediate future accurately.
This will show you which habits or expenditure to drop and which to maintain. Discover to recover.
Have a happy New Year.Niyi Adeoshun
Money Management Coach
Author of "The Price of Financial Freedom"
(3 Essential Steps for Breaking the Cycle of Debt)