Money saving tips: Steps you can take now to avoid a ‘financial hangover’ in 2022

TikTok user shares money saving method using envelopes

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Money saving can be a challenging endeavour, particularly with the rising cost of living, but there are hacks to help with finances. In addition, it does not have to be a painful experience, and there are small changes which could be made to make a huge difference. Digital financial coaching app Claro Money has looked at some of the ways individuals can make alterations to their money.

In so doing, Britons will be able to avoid a “financial hangover” in 2022, and start the new year afresh.

Looking back at last year’s spending habits could be a perfect tip, not only to tackle festivities but also as a way of organising finances going ahead.

Claro recommends Britons make a note of what they spend the most money on so they can work out where their hard-earned cash is likely to go to.

Comparing outgoings can help individuals to measure their spending and identify areas where they could cut costs on.

Similarly, individuals are encouraged to start saving early for key events, which do not just have to be reserved for Christmas.

People can make decisions about how much cash they would be able to put aside every week on top of their current outgoings or savings.

However, individuals should always be realistic about this amount, and of course, flexible to a certain degree.

If a person knows they will not be able to say no to after-work drinks, for example, then Claro states they should put enough money aside for this.

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If an individual has a goal for saving, whether this be next Christmas or otherwise, they should keep a separate pot according to the financial app.

Keeping it separate from day-to-day spending and long-term saving allows people to remain on task and look at how much extra they have to spend.

It can encourage them to make conscious financial decisions for the festive season and into 2022. 

Finally, spreading out costs is key, and while it may seem a while away, thinking ahead to next Christmas could save financial heartache.

Now the 2021 festive celebrations are drawing to a close, people can think about next year and their best plans.

Claro highlights supermarkets often allow shoppers to order their Christmas haul early so they don’t have to worry about the costs come December.

Purchasing earlier will give individuals a chance to shop around for the best deals and save money, whether on Christmas presents or Christmas party outfits. 

Emergencies can also arise which is why many experts suggest having money put aside just in case.

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This should cover three to six months worth of expenses so individuals are protected should the worst happen.

Those who need further guidance on money related issues can gain support from a number of sources.

These include Citizens Advice and the Government-backed Money Helper service. 

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