How to manage your money in January

POSTED: 21st January 2014
IN: Personal Guides

If you are counting the cost of overspending at Christmas, you are not alone.

If you are counting the cost of overspending at Christmas, you are not alone.

Last January, according to a survey by VoucherCodesPro, a quarter of workers had just £25 a week to live on.


This means many people will have to live extremely frugally until their next payday at the end of January.

If you are feeling low about your finances and not sure how to stretch your funds until payday there are a number of ways you can take control and get through this difficult month.

Firstly, work out how big the gap is in the amount of money you need and what you have.

You need to list the amount that you cannot avoid spending. So, factor in rent and mortgage costs, essential bills, petrol or travel costs to get to work and food. Subtract this total amount from what you have and work out what the shortfall is.

Switch your current account

You could switch bank accounts to one that offers a cash incentive to switch or one that offers an interest-free overdraft.

Under the new rules governing switching current accounts, providers have to switch in seven working days so if you switch now your new account will be up and running well before the end of the month.

Use your savings

If you have any, you may wish to dip into your savings. This should be used as minimally as possible, but at least you won’t be charged interest for borrowing money to get you through to the end of the month.

Sell stuff

You could put some items up for auction on an online website such as Gumtree or eBay to create some cash. You could start with any unwanted Christmas presents.

Borrow at the lowest rates

If you cannot raise the funds required in any other way and have to borrow money, then ensure you do this in the cheapest way.

Ideally, you will be able to borrow just what you need from friends or family as a temporary loan until payday. That way you will probably not have to pay any interest.

Try and avoid using a payday loan as this is one of the most expensive ways you can borrow. There are a number of credit cards that do not charge any interest for over 12 months and this can be an excellent method to buy some time to repay the debt without incurring any interest.

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