Yahoo Finance Blue Monday: Turn that 'worst day of the year' into something better
Every year when the holiday hangover rolls around, Canadians wince at their credit card statements as they start rolling in mid-January. Cliff Arnall, the former Cardiff University lecturer responsible for dubbing January 16 “Blue Monday” (otherwise known as the most miserable day of the year based on elements like debt, motivation and weather) shudders at the slew of headlines today that’ll cite his pseudoscientific 2005 conclusion as fact.
Well Mr. Arnall, we’re with you: while it’s impossible to point to one day as the worst of the year, January certainly feels like the right realm of the calendar to tack a “Blue Monday” (or two). Those credit card statements from the holidays start rolling in and the weather is miserable.
“I think January is a pretty depressing month in general,” says Wade Stayzer, Vice President of sales and services at Meridian Credit Union. “You’re in that position where big credit card bills have come in or you’ve overspent or your financial habits aren’t where you want them to be.”
But chin up Canada, here’s your chance to turn it all around.
“This is the time, now – in the first month – to say ‘how do I make sure that in January 2018, I’m not feeling the same way,’ ” says Stayzer. And there are some pretty foundational things you can do to better your financial situation.
Deal with the current reality
“It’s hard to look forward when you’re still having to look back,” says Stayzer. “The first thing you need to do is put a plan in place to pay off any outstanding holiday bills that you may have had from 2017 or any floating debt,” when you’re thinking ahead to next year.
That means reviewing 2016.
“Go through your last year’s bank statements to find out where you spent money,” he says. Taking a critical look at your spending habits and breaking it down into individual categories – like groceries, dining out, house décor, etc… – can give you a better handle on what you’re spending. You may be surprised how much you doled out for things like food or entertainment,” says Stayzer.
“It’s okay if that’s your priority,” he adds. “It’s when there’s a disconnect between where you think you’re spending your money and where you’re actually spending your money (that’s a problem).”
Get financially fit
“When you try (to establish) a fitness routine it takes a couple of weeks until you’re actually addicted to the new behaviour because you’re feeling better, you’re seeing results,” says Stayzer. “It’s the same for building good financial habits – (it) takes time and discipline.”
The rewards may take a little bit to materialise but once you get the momentum up, it becomes a lot easier to stick with your plan.
“Get yourself into the habit of looking at your spending on a monthly basis,” he says. Doing so allows you to make adjustments to in areas where you’re spending too much on things that may not be your priority.
Be proactive
“The more proactive you can be, the more likely you are to set yourself up for success so you don’t even need to be having this discussion next January,” says Stayzer. For example, supposing you plan on spending around $2,000 on Christmas at the end of the year, knowing that at the start and investing pre-authorized amounts in a separate account ($80 every two weeks will do) will ensure you’ll have what you need come holiday season.
“It’s making the shift and building good, proactive financial habits as opposed to reactive financial decisions,” says Stayzer. “And there’s a big difference.”
But those habits don’t have to be monotonous. Stayzer points to something like saving for a trip using the 52-week money challenge where you putt aside $1 the first week, $2 the second, $3 the third and so on.
“By the end of the year you’ve got close to $1,400 saved,” he says.
