30% of Brits Are Dipping into Savings to Get through January

Two-thirds (66%) have said they struggle with the long gap between December and January paydays
Over 19 million Brits are cutting back on dining out (43%) in January
Six million Brits (14%) have had sleepless nights due to the long December-January payday gap
Almost three quarters (71%) of Brits have made a change to their budgets to get through the month

The January blues are more than just a passing mood, they are a nationwide phenomenon that is often made worse as it is coupled with one of the longest gaps between paydays, with December pay cheques typically hitting bank accounts up to two weeks earlier.

In a recent survey by CouponBirds, the financial struggles of the first month of the year have come to light, revealing that a third (33%) of Brits have resorted to dipping into their savings to get through January.

Here, we unravel the story behind the numbers and uncover practical strategies to beat the January financial challenge.

How are Brits getting through January?

The December-January pay gap, often the longest period in between paydays over the year, has forced people to change their spending habits significantly. It was revealed that thirty million Brits (71%) have made at least one change to their budgets to allow their bank accounts to stretch over the month. Whether that's [WHAT], these are all attempts to save the pennies.

Tackling temptations

As January poses economic challenges for many, Brits will make decisions about cutting certain expenses to survive the month. Dining out (43%), ordering takeaways (37%) and buying coffees (32%) are three of the top ways that people will look to save money until that January payday.

The top ways to save

The research has uncovered the UK's top tactics for saving money in January, without making big compromises. Brits are actively adopting strategies such as curbing impulse spending (53%) and opting for cozy nights in over extravagant nights out (25%). Over four million Brits are even embracing 'Dry January' (9%) to save money, rather than for the physical benefits.

Percentage of Brits who will stop certain activities to save money during the December-January payday gap

Activity	% of Brits who will stop this activity
Dining out	43%
Ordering takeaways	37%
Impulse purchases	35%
Buying coffee	32%
Buying sale items just because they are on sale	27%
Buying expensive/premium groceries	26%
Going to the cinema	22%
Treating yourself	21%
Getting hair professionally done	19%
Getting nails professionally done	16%

January's unexpected costs

There are often a range of unavoidable and unexpected expenses that arise during January. Home maintenance costs, such as a boiler breaking or pipe bursting, top the charts for the most common unexpected cost that arises during the payday gap with 9.45 million Brits (21%) having to dip into their wallets to fix a household problem.

In addition, broken dishwashers, washing machines and cars have affected a huge 11.2 million Brits (25%), during the month when everyone could do without it.

Are we counting sheep or counting pennies?

Moods have most certainly fluctuated in the month of January, as 13.9 million (31%) Brits claim to 'feel the pressure' over the month, whilst a further six million Brits (14%) have confessed to experiencing constant worry and sleepless nights due to financial uncertainties.

This is particularly true of young people as 19% of all 18-24-year-olds on PAYE have claimed that they struggle to doze off due to their worries around money.

The workplace problem

Brits have also been expecting more of their employers during January in a bid to combat the long payday gap. Over 11 million Brits (26%) hope that their employers might provide flexible payment terms for January and over six million (15%) think that their bosses should be offering support loans to their staff.

Commenting on the findings of the research, Andy Cooper, Financial Analyst & Money-saving Expert said, "Witnessing the financial hurdles people face in January is really disheartening, and it's particularly alarming that a third of Brits need to delve into additional funds to navigate through the month. The nation's well-being is truly at risk and employers should assist in any way they can to make this month more manageable for everyone."

"If you're striving to cut back on spending and tighten your financial belt this January, your ultimate destination to discover exclusive discount codes and save substantially is CouponBirds."

In conclusion, as the nation navigates through the month of January, it becomes evident that numerous individuals will give their wallets a rest, while savings accounts will receive a visit to ensure their owners begin the year on a financially secure note.