Many of those who are all in on the festive madness will no doubt be thrilled when their monthly wages hit their bank accounts this weekend.
They’d do well to remember, however, that it will be a long, long, long time before they get paid again.
How long? Well, let’s do the maths.
Many people get paid on the last Friday of the month, but because it’s Christmas they will most likely be paid this coming Friday, December 19th.
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The last Friday in January falls on the 30th, so for some people there will be six full weeks between pay-days.
And as if that wasn’t enough to soften your spending cough, it’s worth bearing in mind that the Christmas pay cheque will be expected to do a whole lot of heavy lifting that other pay cheques throughout the year don’t have to contend with.
There will be the last-minute presents to be bought, pre-Christmas pubs to be visited, turkeys, hams, the trimmings and all the rest to be paid for. Nights out will also need to be covered, New Year’s Eve, taxis and all the usual expenses such as rent, mortgages, energy bills, groceries and more.
Is it any wonder that come early January many will be smashed and questioning their life choices?
But are there ways to avoid a penniless start to the new year – or at least make it slightly less miserable than it has to be?
Yes there are.
The first thing to do is take a couple of hundred quid or whatever you can realistically afford from your December wage and set it aside – only to be used in January.
You could take the cash out of an ATM and stick in an envelope and put it somewhere safe in your house, or move it into a virtual wallet or separate online bank account – anything to take it out of your current account.
That will stop you mindlessly spending everything you have over the course of the season to be jolly. You will still be able to access the cash, of course, but you will have to make a conscious decision to get at it, and adding a couple of barriers might give you cause to pause.
When January dawns, the serious scrimping starts.
Early in the new year draw up a spending plan for the rest of the month. Look at what you have left after the Christmas madness and divvy it up over four weeks.
Write down what you have and what you are going to spend – even getting your financial situation out of your head and on to a piece of paper will help you make it through.
Do Dry January. Cutting out the booze for 31 days should not be a big ask and even if you are a modest drinker hopping on the wagon for a month will save you about €100 and will make you feel a whole lot better.
Speaking of saying no, another way to get through the month on less is to lean heavily into do nothing and spend nothing days.
Every week between the start and end of January, resolve to have at least four spend nothing days. That means bringing a packed lunch into work – if you don’t work remotely – and steering clear of the coffee shops and regular shops as you go to and from work.
Go veggie for three days a week. Three family dinners made with meat could easily cost €20 but if they were replaced with a fiver’s worth of beans, vegetables or pulses, another 60 quid can be saved.
Wardrobe decluttering is good for your wallet, your head and the environment. Ireland has enough clothes to dress the next six generations, so we probably don’t need to buy more, but maybe you could sell some of what you have on Depop or Vinted. If you can’t sell it, donate it to charity. Spend an evening making four piles – keep, sell, donate and bin. It will free up space in your home, earn you a few bob and see you join the circular economy.
Find free things to do. Just one in five Irish adults is a member of their local library. That means 80 per cent of people are missing out on free books – physical and electronic – free web access, free talks and readings and a lot more.
There are about 400 libraries in Ireland and there’s probably one close to you. Join up, you’ll be glad you did. There aren’t even late fines any more.
If you haven’t done it, resolve to make January the month you claim any outstanding tax credits and reliefs, including medical and dental expense relief, rent tax credit, remote working relief, marriage relief, third-level tuition fees relief, and flat rate expenses.
And at the end, bear in mind that the cruellest of months will pass.
