It may feel bleak but neither mood nor finances are decided ‘by a specific date in the year’.(Image credit: Eleonora Grigorjeva / Getty Images)The third Monday in January, “Blue Monday”, is said to be the most depressing day of the year and, for many, this negative mood is tied to their finances.After a December “full of expensive festive celebration”, many families will “start the new year already in debt” and may have “fears” about how to escape, said MoneySuperMarket.But, while January can be “one of the hardest months of the year” for those struggling with their finances, Blue Monday can actually serve as the perfect opportunity to make the financial changes that will make spending and saving easier for the rest of the year.Subscribe to The WeekEscape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
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Sign up for The Week’s Free NewslettersFrom our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.Cut unnecessary costsJanuary may be rolling on but it’s definitely not too late to reduce your planned outgoings in 2025. In fact, “it is worth going through your bank statements” as soon as possible – “three months’ worth would suffice” – to review all your bills, said Interactive Investor.By analysing how much money is leaving your bank account and for what purpose, you will be able to “identify any unnecessary charges” or subscriptions you no longer need. These can then be cancelled or eliminated to save money, or you could “contact service providers to negotiate better deals” or discounts.Understand your spendingBefore you draw up a financial plan of action, you need to think about your personality, as this often affects “your relationship with money and debt”, said Money.caThose who are cautious by nature are likely to have “little debt to begin with”, while those who are “more of a risk-taker” may be open to assuming more debt – by making investments, for example – in hope of a “greater payoff” later. If you’re in the latter camp, it could “put you at higher risk of getting in financial trouble”.Be especially wary at this time of year if you know you’re an “emotional spender”. Retailers are known to “capitalise on the concept” of Blue Monday to encourage emotional spending “to beat the blues” – and help their bottom line, said The Star.If you’ve noticed you tend to spend more “during periods of low mood”, make a promise to yourself only to spend intentionally and “mindfully”, rather than getting carried away and regretting unneeded purchases later.Get savingIf you miss the “burst of dopamine” your brain releases when you’re buying something, you could try channelling that rush into meeting your savings goals instead, said MoneySuperMarket.Achieving “financial milestones”, whether big or sm
