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The holidays are over, but their financial aftermath is still hanging around—and your wallet might feel lighter than you’d like. Don’t let a tight budget dampen the start of your new year. With a little creativity, smart planning, and the right mindset, you can tackle January without missing a beat.
Here’s how to navigate the first month of the year when your bank account needs a breather. Let’s make this January not just about survival, but about thriving on less.
According to the Financial Post, the plan is to start fine-tuning your steps by revisiting your budget and looking for specific ways to cut back on costs. It is further mentioned that you use financial management tools to track income and expenses and create custom budgets.
The above source continues to mention that you address debt by applying extra income to high-interest balances and consolidating remaining debt. “Reducing the number of loans you carry can also help simplify your financial life and ease money stress. You may want to ask your financial advisor about possible strategies.”
The Abacus publication states that you consider the snowball method, which is a financial strategy where you pay off the smallest loan first, regardless of interest rate. This method is believed to be highly motivating as you can achieve milestones quickly.
The avalanche method, on the other hand, uses the interest rate of your loans to prioritise them, starting with the highest interest rate and moving down the list, claims the above source. This method may be less rewarding but could be more financially beneficial, the publication adds.
Also see: Smart budgeting tips to drive small business growth in 2025
