As this article from The New Statesman notes, several months of the year have 31 days – but we all know in our hearts that January is the longest month of the year!

Here we offer some basic advice for surviving the post-holiday financial crunch.

Don’t panic

If cash looks set to be tight for the first few months of the new year, don’t let this ruin your holiday memories, and don’t panic. Instead approach the situation calmly so you make rational decisions.

With a budget and some determination, you may be back on track financially sooner than you think. The best approach is to view the situation as a challenge. Make it a game to get by on as little as you can, and you’ll find each savings you make satisfying rather than depressing.

Draw up a budget

The main advice for improving the health of your finances always involves drawing up a budget. This is because it’s really the only way to gain control. It might or might not happen overnight, but you have to bring what you spend in line with what you can afford.

You don’t have to use a complicated spreadsheet to do this, but you’ll need to use some form of simple tracking, even with just pen and paper, to break down your expenses in different categories and to set reasonable spending limits.

Have your bank statements on hand as you draft your budget, and be honest about how much disposable income you’ll really have after your regular monthly expenses are paid. Once you’ve got a budget, stick to it.

Shop with intention

If you shop with intention, you’re less likely to make unnecessary purchases. Make a list of what you really need to buy and refuse to deviate from it. With practice, you’ll find it gets easier to ignore other temptations once you walk into the shops.

To determine what counts as needed, it helps to plan meals for the week before creating a shopping list. That way, you don’t just stroll up and down the aisles, picking up items at random. Buy just what you really need.

It’s also a good idea to shop less often. For instance, shop for groceries every second week rather than weekly, forcing yourself to use up food that’s already in the house. 

The less time you spend at the shops, the less opportunity there is to waste money on items you don’t really need (and often don’t even really want).

Use cash

Paying with cash is a good way to keep track of your spending – it’s far too easy to swipe a credit card and turn a blind eye, but seeing cash physically leave your wallet is hard to ignore. 

Put just enough cash in your bag for each shopping trip or activity to prevent unnecessary spending.

Avoid eating out

Eating out is costly. Do your wallet and your waistline a favour by cooking at home, and keep your social life healthy by organising get-togethers with family and friends that don’t revolve around food.

Plan a walk somewhere outside or organise a beach day, for example. If a social gathering does involve food, get everyone to contribute a dish for a group meal.

When necessary, get a loan to see you through

If you’re really not making it financially, remember it’s likely you have some options. Securing a short-term loan may be enough to see you through a temporary rough patch (at least until the next pay day).

One alternative is an asset-based loan from Lamna. If you have a valuable asset like a paid up vehicle, jewellery or even artwork that’s of value, you can use it as collateral to secure a loan – and once you’ve repaid the loan with agreed interest, the asset will be returned to you.

For more information about using an asset to secure a short-term loan, contact Lamna on 086 111 2866 or simply complete and submit our online application form.t