"One of the main reasons that debt occurs is because of poor planning. Most people get their December pay check early in the month and forget this is need for survival in January. First tip would be side pocket what you need for rent, car payment, insurance and survival for January the rest is your December pocket money."Keep a piggy bank next to your bed and try and put all your small change in the jar. Also, if you have any bad habits, like swearing or lack of exercise, why not 'punish yourself' each time you swear or forget to exercise. That way you are insuring productivity and saving cash. Jones also suggests that people set up a debit order to save without the effort of actually putting money aside. "Set up a monthly debit order to a money market account and actually save, it is a habit. Self gifting is a thing."
Is January going to be really tight? We have tips on getting through a month on a shoestring budget!
This one is a must before the season is in full swing and the paychecks roll in. "Budgeting is the first step, if you do not know how much your expenses are then you do not know how much you need to have set aside," explains Jones.Once you have drawn up a budget, you must stick to it to insure that you make it through the money without incurring any debt. Don't let all the sales and great Christmas specials lure you into spending more money than you planned. Draw cash out of your account, this will make managing your money a bit easier because you can physically keep track of your spending.
"If you are going to go into debt firstly have a plan to pay it back, a bad credit score sticks around. Try not get into more than three months of disposable cash debt. Then plan to rather have savings next year then use your credit card. Set up a month debit order into a money market account where you do not get instant access," says Jones.Jones also encourages people who already have credit card debt to use their bonus to get rid of the debt.
"If you have debt I would use this bonus to get myself out of the debt trap, this is the best present to yourself for the new year. Then chop that credit card up."