January is the most financially stressful month of the year – with high energy bills causing the most concern.
A poll of 2,000 adults found people worried more about their finances in January than any other month, with 29 per cent concerned about the cost of winter’s higher energy bills and 26 per cent anxious about the difficulty of saving money.
While 24 per cent were nervous about being caught out by unexpected expenses early in the year.
Stress about clearing festive spending or holiday debt and car-related costs were other top concerns, as well as feeling concerned about credit card debt.
The research, which was commissioned by Virgin Money [https://uk.virginmoney.com/service/financial-wellbeing/], revealed the top ways people planned to ease financial pressures in January, which included cutting back on non-essential spending, keeping an eye out for discounts and special offers, and delaying bigger purchases until later in the year.
But 16 per cent admitted they find it difficult to balance the books following spending over the festive period, with people needing to cut back by an average of £212 in the first three months of the year to help get their finances back on track.
It also emerged 43 per cent have lost sleep due to money worries, with those affected experiencing restlessness on an average of three nights per week in January and losing around three and a half hours of sleep during their worst night.
Money concerns are negatively impacting people’s daily lives too, with 31 per cent feeling stressed or anxious due to them, and 20 per cent feel overwhelmed.
Virgin Money’s money expert Alina Jaffer was put in the hot seat to answer Brits’ burning financial questions to help alleviate their worries and provide some handy tips for the most asked queries.
Alina said: “January can often be the time when money worries creep in and reality hits, particularly following an expensive festive period.
“Given many people get paid earlier in December to work around bank holidays, for some this month can feel like the longest month of the year with the wait for pay day lingering on.
“Our research shows there is a lot of worry around finance at this time of year, and this type of stress can take its toll, with many even losing out on important sleep during this period.”
When it comes to talking about money worries, 22 per cent admitted hearing others discuss their financial concerns made them feel better about their own, helped them to realise they are not the only ones to face similar challenges and reassured them their feelings are normal.
A one-on-one chat with a trusted friend or family member was the most preferred option (43 per cent) or a private conversation with a professional (23 per cent), but 26 per cent don’t talk about them at all.
Of those open to discussing their concerns, 51 per cent said their bank was helpful at dealing with their worries.
The research, carried out via OnePoll.com, comes as Virgin Money continues to encourage people to take money worries off their minds this January.
Its branch teams are trained with the support of mental health charity partners Mind and SAMH (Scottish Action for Mental Health) and are ready to have conversations with anyone who might be struggling or have questions.
As part of Nationwide, the bank has also confirmed all its branches will be staying put until at least 2030, due to the recent extension of its Branch Promise.
Alina Jaffer from the bank added: “Often, vocalising our feelings and worries can do the world of good.
“And if you don’t feel you’ve got someone you can open up to, we have colleagues on hand to listen as we know that financial pressures can weigh heavily at this time of year.
“A good conversation can also add some perspective and a fresh view which could make all the difference.
“Our door is open for anyone who needs support, so take money worries off your mind and come and have a chat with one of our colleagues.”
BRITS TOP 10 MONEY WORRIES IN JANUARY
1. Worry about higher energy bills in winter
2. Difficulty saving any money
3. Worry about unexpected expenses
4. Stress about clearing festive spending or holiday debt
5. Concern about car-related costs
6. Worry about credit card debt
7. Struggling to afford social activities after Christmas
8. Struggling to pay household bills
9. Concern about council tax payments
10. Pressure to stick to New Year financial resolutions
