Top 5 ways January has damaged your finances

January is typically a gloomy month for all and many will be glad to see the back of it.

Not only does the month contain the most depressing day of the year but it’s also the month in which your finances may be stretched the most leading to increased personal debt.

We take a look at the top 5 ways January may have damaged your wallet;

1.Sales shopping
It’s hard to resist the urge to shop when you are surrounded by big, red sale signs for a whole month. Whilst many believe that sales help you save money, in some cases you may just end up spending more on items you don’t need.

Are you shopping for the sake of it or do you genuinely need that new George Foreman grill?

Sale shopping in January is part of the great British heritage, brought on by the shops to get you to spend even more of your hard earned cash.

2. Self Assessment Tax returns
Self Assessment tax returns are to be sent off by the 31st January. If you fail to do so by this date you could incur a £100 fixed penalty charge, even if it is just one day late. Following that, there is a £10 charge for each late day of the tax return. 

The maximum is 90 days, which could see you pay a £900 fee in addition to the £100 fixed penalty charge.

3. Home & car insurance
The nasty weather at the beginning of the month saw storms and winds of up to 100mph hit the country, leaving it battered and bruised. Homes and buildings in the North of England and parts of Scotland were left without power, roads were closed, airports shut and trees felled.

Cars and homes were left damaged after the bout of stormy weather and we may not be out of the woods just yet in this regard.

4. Post-Christmas holiday blues 
Another way in which January may have drained your finances is through holiday bookings. After a month of festive celebrations, the feeling has quickly faded once you hit the 3rd week of January.

January is typically a peak month for booking holidays so, despite the sales, tour operators will up their prices.

5. Bills, bills, bills
As the winter fuel bills start to arrive in the post, many can watch their cashflow diminish. This will be one of the most expensive times of the year for households as 40% of the annual energy consumption is used during the winter months, according to a leading price comparison website.
 

Moneyextra.com recommends you take independent financial advice before acting on any article

2012-01-31 15:37:33 © Moneyextra.com