14 January 2022
Monday 17 January marks the day dubbed as this year’s ‘Blue Monday’, which is often thought to be the most depressing day of the year. Financial worries are often a key contributor to the ‘Blue Monday’ blues having been heightened following increased spending during the festive period.
Due to the uncertainty surrounding the pandemic, this year there are many people struggling with anxieties around their finances, particularly as a result of the Omicron variant and subsequent restrictions across parts of the UK. Recent Quilter research, conducted with YouGov[1], found that 16% of people felt their current financial circumstances would not allow them to cope if there were to be another lockdown.
Financial worries can play a big role for those struggling with their mental health and wellbeing, so this ‘Blue Monday’, wealth manager Quilter is urging people to take control of their finances to help beat the blues.
Emma Prince, financial adviser at Quilter, offers three useful tips for getting your finances in order, to help tackle stress:
“We can feel blue at any time, but at this time of year finances often prove to be a major source of worry as people often wait longer for their January pay cheque following early payments in December ahead of Christmas, coupled with an expensive month spent celebrating the festivities. Covid uncertainty is adding to the strain this year with a significant minority concerned about how they would cope if we see further government restrictions.
Tip 1: Speak to someone
“As a society, we tend to avoid tricky topics of conversation, particularly when it comes to money. But carrying the financial burden alone is not the answer. If you are struggling with your finances, it is important to remember that help is available.
“It can help to talk to a friend or family member as a starting point, but if you’re less comfortable doing so, seeking financial guidance can be very beneficial. A good place to start is speaking to Government backed services such as MoneyHelper, or a charity such as StepChange or Citizens Advice, which can offer free support.
“For some, speaking to a financial planner might be the best option to help implement a long-term plan for your finances. A financial planner will be able to help support your decision making and find the best possible solutions for your circumstances.
Tip 2: Make a simple budget
“If you’ve lost track of your spending, there are many online budget planners to help you get back on top of things. A budget simply helps to show how much you spend and where, and from there you may find some quick wins to cut back on spending.
“By isolating your major spending, you can also clearly prioritise where to review to make the biggest differences. Subscriptions should be reviewed regularly and with energy costs spiking, it is sensible to consider whether you can switch to a better deal.
Tip 3: Build a cash buffer and plan for the longer-term
“Having a cash savings buffer is important, but before you start saving, it is a good idea to ensure any debts are paid off first – starting with those with the highest interest rates. Having debt can negatively impact your mental health, making it all the more important to address these issues to help alleviate stress and money worries.
“Once you have any debts in check, it is important to build cash savings. Even though cash returns have been distinctly underwhelming, having some cash in reserve is critical. It provides a backstop if you find yourself in financial difficulty. That buffer could be the difference between getting through a period of financial strain or falling into debt.
“But once you have an adequate pot of cash to tide you over, it is important to think about investing for the longer-term. This is particularly important in times of rising inflation which can cause cash savings to effectively decrease in value over time. Many people are cautious about investing in the stock market, and although markets do go up and down, those willing to set money aside for the longer term can be confident that the market will return more than cash.
“Whatever your personal goals, be that paying off debts, building your savings, planning for your retirement, or even stepping onto the property ladder, there are many things you can do to help you on your way.”
This ‘Blue Monday’, Quilter is supporting its customers and colleagues through a series of articles providing useful tips and tricks on various areas of personal finance and wellbeing that many find to be the most challenging, including:
- Tips to improve your money and mental health
- How to take control of your finances with an annual budget
- Five ways to make the most of your retirement
- Five tips to help you up the property ladder
For more information, visit the Quilter website.
In addition, Quilter, in partnership with Spill, an organisation which provides mental health support, is offering a range of free talks for advisers to help them deal with common strains on their mental health including burnout, status anxiety and stress.
The following talks will be available on Monday 17th January via Quilter’s There for you website:
- Understanding and beating the winter blues – 12pm - 12:45pm
- Breaking out of a procrastination and low-productivity rut - 1pm - 1:45pm
- Overcoming imposter syndrome and self-doubt - 2pm - 2:45pm
[1] YouGov research conducted for Quilter. Total sample size was 2069 adults. Fieldwork was undertaken online between 23rd – 25th December 2021. The figures have been weighted and are representative of all UK adults.
