A new online tool has been created that will tell you the exact date when your finances should be back on track after all your Christmas costs
This tool reveals precisely when your finances will recover after all your Christmas expenses. Simply input how much money you splurged over the festive season, along with your expected January income, and it will provide an exact date for when you’ll have recouped all your spending.
It comes after the average person spends £649 more in December than any other month, making January a financially challenging month for 60% of people as they try to recover their spending.
The average person will spend £120 on socialising, £204 on food and drink, £120 on travel, and £321 on gifts in December, leaving them with less money in January.
According to the research of 2,000 adults, 75% deem it crucial to establish a budget for the Christmas season, yet only 52% actually do so, while 37% completely lose track of their spending over December.
To add to the financial strain going into January over half expect their energy bills to rise as the weather gets colder. Additionally, 29% of individuals who receive their pay early in December to cover Christmas costs face a longer wait until their next payday.
Because of this many Brits will start to make cut backs in January to help save on expenses.
Some of the top ways respondents will be saving money in January is by eating out less or cutting down on their food shop. Around a third will cut out takeaways, and 29% will get stricter with the heating coming on.
The research indicates that two-thirds of people intend to save money in January 2025. However, 27% acknowledge that their spending habits in December may hinder their savings goals for the new year.
Find out when you can expect to financially recover from Christmas with Plum’s new tool
“January is the ideal time to be smart with your cash,” advised Rajan Lakhani, Head of Money at mart money app Plum, which commissioned the research.
He added: “With intelligent budgeting, additional Christmas expenditure can be managed, and you won’t need to make significant cutbacks for weeks just to survive until February’s payday.”
