This innovative tool could be the answer to your post-Christmas financial woes.
Simply enter the amount you splurged over the festive season and your expected January earnings, and it will pinpoint the exact date your finances should recover. Additionally, it offers savvy advice on managing your money to offset the hefty holiday expenses.
It comes after research found that while three quarters of Brits believe it’s important to set a budget for the Christmas period, only 52% do so and 37% will have completely lost track of their spending in the last month.
The typical person spends £649 more in December than in any other month, including £120 on socialising, £204 on food and drink, £120 on travelling and £321 on presents.As a result, 60% find January financially challenging as they attempt to recoup their festive outlay.
“January is the perfect time to be smart with your cash,” advises Rajan Lakhani, Head of Money at smart money app Plum, which conducted the study. “With smart budgeting, extra Christmas spending can be dealt with and you won’t have to make major cutbacks for weeks just to get through to payday in February.”
Budgeting post Christmas? Try out Plum’s new financial tool
To save money, Brits are planning to dine out less and reduce their grocery bills. One-third intend to eliminate takeaways, while another third will be more disciplined about heating usage.
Nearly half of the population find January challenging due to increased energy bills resulting from colder weather. Additionally, 29% receive their December pay early to manage Christmas expenses, leading to a longer wait for their next paycheck.
Research indicates that two-thirds plan to save money in January 2025, but 27% confess that their December spending habits may affect their savings goals for the new year.
Rajan Lakhani commented: “Christmas is a wonderful time for giving, but it can often stretch our budgets to the limit. Between gifts, festive meals, and social gatherings, the costs add up quickly. While it’s a season for generosity, it’s also important to remember that financial wellbeing doesn’t take a holiday.”
He added: “January, with its quieter pace, is the perfect time to reassess where your money went and start fresh.”
