Budgeting, Cost of Living challenges and recovering after Christmas
At Swarm, we champion all round learning and self-development, and managing money is an important life skill. Managing finances through the holiday season can be challenging and proper planning and budgeting is the way to go, not just before Christmas but also in the aftermath of Christmas to recover and stay out of debt.
For our learners who will likely have had budgeting conversations with their tutor, and possibly taken up offered skills training on Excel, take another look at that Excel planner, update it again with any last minute outgoings and see how well you have done in tracking and sticking to the budget you put in place a couple of months ago. Even with the best will in the world though, there can still be some unforeseen costs and many of us will have gone over budget.
Here are some ideas to address financial concerns and build a more secure financial future as you come out of December:
Set a realistic budget for January (and each month going forwards) and regularly revisit it:
Small price increases add up and must be taken into account.
Update your previous budget to account for any potential changes and determine an accurate disposable income figure for the month ahead.
Use cash at the shops:
With cash, we become much more aware of what we are spending. Only take the spare cash you have budgeted to spend that day and when it’s gone, it’s gone.
Set reasonable goals:
Set realistic goals for paying off debts or saving money.
Examine monthly income and expenses to identify areas for improvement.
Organise repayments:
Review and list all current debts, interest rates, and repayment terms.
Prioritise paying off debts with the highest APRs, especially credit card debt.
Explore cheaper alternatives:
Analyse monthly spending, including energy bills and grocery expenses.
Use comparison websites to find cheaper options and better deals.
Switch from well known branded goods to cheaper versions.
Job opportunities:
Our apprentices are picking up important training for their career ahead which will not only help them to progress their career to follow their dreams but also to achieve a higher salary. Could you upskill on an apprenticeship and get on the path to a higher paid role? Talk to your manager when you return to work after the holidays and look together at some of the apprenticeship courses you could do.
Explore additional work opportunities on a freelance basis to top up your monthly income (check your Employment Contract before going down this route to ensure you have the green light to do so)
Consider requesting a pay rise if applicable.
Maximise your income:
Sell items you no longer need in order to generate extra income.
Avoid waste (whilst also saving the planet) e.g.
- use every bit of food you buy to make ingredients stretch to more meals.
- wash up manually to save money on electricity for a dishwasher cycle.
Plan ahead:
Plan for known expenses throughout the year.
Start planning for the next Christmas early to avoid using credit cards.
Seek help:
If you need help where ends just won’t meet or debt is looming, speak to a CAP coach for training courses or 1-2-1 support on budgeting to balance your incomings and outgoings and/or cope with debt. You can also speak to Citizens Advice about additional financial help you may be entitled to.
The emphasis on planning and tracking, setting realistic goals, sticking to them, and keeping an eye out for opportunities for additional income, provides a solid foundation for all of us in securing financial stability. It's important to take proactive steps and seek support when needed though before getting into any difficulty.
If you are one of our learners and have any worries post Christmas, no matter what it is, you know you can speak to your tutor who will always do their best to help you even if it is just to signpost you to specific support.
