Let’s face it – the first month of the year isn’t always the best financially.

After Christmas and the New Year, many of us are trying to make it to the next payday and the last thing we are thinking about is saving money in January.

However, building up January savings is often easier than you think, and getting a head start on your personal finances is always a good idea.

Keep reading to learn more about how to elevate your finances in January and whether this month is a good time to begin saving.

How To Save in January

If saving money in January feels impossible, you are not alone. This month feels tough for many individuals. After all, it encompasses Blue Monday for a reason!

The best way to start building up some savings at this time of the year is by starting small and remaining consistent.

For example, you should set a clear budget and stick to it – don’t be tempted to make extra purchases because you feel stressed and need a distraction. An online budgeting app can be a lifesaver when it comes to holding yourself accountable.

You may even want to experiment with automating your savings. This means your bank automatically transfers your savings, so they are out of your current account and into your savings pot without you having to do anything. This removes any temptation from the matter!

Lastly, January also gives a great opportunity to save, as everyone is in the same boat. Explaining to friends and family that you want to cut back won’t raise any eyebrows in January, as they are often also pulling the purse strings to make it to February.

The Pros and Cons of Saving Money in January

The New Year gives us a blank slate in all aspects of life, including our finances. From doing a low-spend January to paying off your debts, here are the pros and cons of being strict with your cash this month.

Pros of Saving in January

  • The New Year can be a symbolic fresh start that gives you an extra boost in motivation for saving and paying off debts
  • You might be more keen to save after spending more during December holidays
  • If you received a year-end bonus, you can start saving on a high note
  • There is less pressure to overspend in January, meaning you can start saving without any FOMO

Cons of Saving in January

  • Depending on how your December went, you may first need to pay off holiday-related debts before you can start saving
  • It is tougher to be disciplined with saving when there are so many New Year’s sales and discounts
  • You might be facing additional winter costs, such as higher heating bills
  • If your income fluctuates (e.g., due to self-employment or freelancing), you may not want to start saving before getting an idea of your earnings for the year

The January Outlook

Whether you are a bonafide budgeter or dipping your toes in the water, January is an excellent time to reassess your finances and kick start your savings.

Even if you only save a couple of pounds, you are still further ahead than last month. Every penny matters!

Read more about savings and personal finances on the Cash Asap blog.