10 Money saving tips for January

If you’re like most people, January is always a hard month financially. However, you can get your finances back on track this year by following these money saving tips.

1.) Start with a new budget

Chances are that you are struggling because of living above your means. While it is best to look for ways to grow your income instead of downscaling on your lifestyle, it is reasonable to live within your means, at least for now.

It is therefore important to start this year by creating a budget. This document will help you to know where your cash is going and what aspects of your life should be changed.

2.) Automate your savings

When it comes to savings, it is easier said than done. In order to meet your objectives, automate your savings, either by setting a standing order or via an automatic transfer into a savings account at a different bank.

3.) Dry January

A great way to start the year is by doing the so-called ‘dry January’. This is basically abstaining from booze for a whole month. You will be surprised to see the amount of money you spend on alcohol night outs every month. Saving this money can go a long way in helping you break the penniless January cycle. 

4.) Be frugal

It pays to keep aside some money and grow your life savings. Always ask yourself if it makes sense to spend so much on that bottle of wine that stays in your house untouched for one year. Do you need those designer glasses to be happy? Would you rather have cash in your wallet or another bottle of wine? Keep asking questions.

READ: How to save money wisely for the proverbial rainy day

5.) Cancel idle memberships

Most people join gyms and members’ clubs at the start of the year, but as time goes they find the subscriptions do not fit within their schedules. 

Such unused memberships are notorious money wasters and should be discontinued. It is more economical to pay higher non-member fees to use a facility when you want to than to be entitled to paying less for a membership that you do not use.

6.) Sell stuff you no longer need

Selling old stuff that you don’t need is a great money saving tip for January. This is also a great way to declutter your house or office. Cash raised from the sale should be deposited into your savings account – for a rainy day.

7.) Eat what is in season

Fruits and vegetables that are not in season are quite expensive due to their unavailability. The reverse is true for commodities that are in season.

Besides saving yourself money, eating what is in season offers you an opportunity to indulge in farm fresh produces.

8.) Review your contracts

Are you paying for 5GB of data but only use half of it? If so, it is time to consider taking up a smaller package. Cutting down on wastage is a sure way to create a bigger bank account balance.

9.) Create a bank account buffer

This refers to money that stays in your checking account and acts as your new zero balance. Ideally, this amount should be about your one month’s salary.

A bank account buffer saves you the trouble of living paycheck after paycheck – with worries of unexpected bills that can drive you into the red.

10.) Make use of January sales

In January, stores place on sale items such as furniture and electronics. You should make a point of browsing through these sales to see if any of the items you plan to buy in the year is on sale. You’ll be surprised to find great items at incredibly low prices.

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