Budgeting in 2020 – how to survive Janu-Worry and beyond
The January blues are a feeling experienced by most after the December break. Whether you celebrate Christmas or not, the festivities enjoyed in the last month of the year generally come at a price in more ways than one, and can leave our wallets substantially lighter while our bodies might not feel the same. It’s easy to overspend in the months leading up to the December break, and as we all know – January or rather Janu-Worry as its come to be known, can feel like the longest month of the year and in fact financially it is as most people get paid their last salary for the year mid-December which is expected to last until the end of January. So with this in mind, what is the best way to get more bang for your buck in 2020?
The first and easiest step to take is to set out your goals for the year both in a personal and financial capacity – these can be set up as daily, weekly and monthly goals and achievements. Once these have been established, it gives you a good starting point and supports the holistic vision for the year. Note though that it is not enough to simply write down your goals, these need to be followed by a realistic plan that lays out how you intend to achieve them and it also ensures that they are feasible or attainable to a certain degree. It is also important to assess where you stand from a financial perspective, if you are in debt, then this needs to be addressed sooner rather than later before inflation and additional interest rate fees are incurred. Once you understand what you owe, you can calculate how best to pay off these debts and include them as part of your monthly budget.
The next step is a particularly obvious one but not always an easy one in practice – save, save, save! Take a look at your expenses and assess which are imperative and necessary versus those that can perhaps be classified as frivolous. These are the expenses that need to be relooked at to see if money is being spent unnecessarily, outside of your means, or on things that you really don’t need in the long run. Another way to save is by setting out a realistic amount each month that can be put into a savings account at the beginning of the month and can be left to (hopefully depending on your back) accrue some interest and remain untouched until needed. These savings can be destined for your education or a course, towards a car, for travel or as a rainy day fund – whatever the end goal may be saving is essential.
In 2020, take the opportunity to invest in yourself. There may be areas in which you would like to up-skill yourself, or learn a new skill. This investment doesn’t have to cost the earth, and in fact there are a multitude of online courses and resources that are available for free. For instance if you are interested in digital media, marketing and advertising – Google has some great free online courses and resources available: https://learndigital.withgoogle.com/digitalskills . Maybe this will also help with establishing that side hustle you’ve been considering for a while.
While there are thousands of tips and tricks for saving and surviving the new financial year, its best to keep it simple and concise. Make sure that your goals are ambitious but achievable and attainable. Practice mindfulness when it comes to spending and ensure that financially savvy ‘future you’ is glad that you turned 2020 into twenty-plenty.