Have you ever wondered why January seems longer than every other month of the year? January

has the same 31 days in the month as other additional six months in the year. Yet still, January is

perceived to have the longest days of the month. The main reason behind this perception is because

January comes immediately after a festive season full of celebration and spendings. Also, the

month of January is the first month of the year and comes with a lot of planning activities. This

makes January a very special month and one must prepare intentionally before approaching it. In

December, some people receive gifts, bonuses, cash allowances and the like but still have less to

show at the end of the month. Due to the increase in disposable income in December, our demand

for goods and services increase and we keep yearning for more. This shifts our attention from

saving to meet the demand in the following month. We sometimes forget that we must reserve

some money to cater for our expenses in the month of January before our salary comes at the end

of the month. After all the fun, excitement and spending, the reality dawns on us as the new month

and new year begins. At the first month of the year, we mostly desire certain changes to suit the

year such as new clothes, shoes, bags and other necessities which increase our demand further.

This gives us higher expectations and an eagerness to receive payment in the month of January.

The study of Finance psychology reveals that, there is a neurotransmitter called Dopamine which

is a chemical messenger that helps transmit signals to the brain. When one is in anticipation,

dopamine is released and sends signals to the brain for Reward. When the Reward, which is salary

in this case is delayed, it then creates a mental mismatch therefore leading to frustration. This

frustration makes time slow down in the mind because the reward is not manifested and also

amplifies the feeling that time is dragging. This dopamine effect causes attention bias making one

to focus more on the passing of time and makes one check the time often and become more aware

of delays. The anxiety and frustration also increase arousal in the brain and makes waiting

emotionally intense, slowing time subjectively.

One may ask, how can I overcome this financial burden and navigate January successfully?

Planning, Budgeting and Saving:

Effective financial management begins with proactive planning. It is advisable to start preparing

for January at least three to six months in advance, depending on your income level. Outline your

priorities to stay focused and be intentional about your budgeting so that we do not spend beyond

our budget. Allocate about 10% of your monthly salary towards a dedicated savings plan and

adhere strictly to your budget. This allocation will serve as a pre-funding mechanism to cushion

January’s financial demands regardless of the amount. Depending on your strategy, this reserve

can accumulate to approximately half of your monthly income, providing essential support when

used wisely. Before exploring investment opportunities, it is advisable to know your investment

horizon (short, medium or long term), risk tolerance level and liquidity needs.

Investment decision:

Investment options available can be explored ranging from low and medium risk investment such

as treasury bill and bonds, fixed deposits and mutual funds. Treasury Bills (T-Bills) serves as a

prudent alternative to traditional savings accounts, which often offer minimal or no interest.

Treasury Bills are short-term government securities with tenors of 91, 182, and 364 days, and

interest rates vary based on the auction date and maturity period. Currently, the 91, 182 and 364

day bills record interest rates of 10.8%, 13.2% and 14.3% respectively. These rates make Treasury

Bills a more attractive option for individuals looking to optimize returns on idle funds, especially

when compared to conventional savings. Mutual funds which is a medium risk investment option

serve as an alternative investment vehicle that allows individuals to purchase units of a pooled

fund and benefit from potential price appreciation as the Net Asset Value (NAV) of the fund

increases. Depending on the overall performance of the fund, investors may realize returns over a

relatively short investment horizon. The market offers a variety of mutual fund options, catering

to different risk profiles and investment goals. Individuals need to seek financial advice from

investment firms like Merban Capital in order to make informed decisions.

Buying at a discount

Buying at a discount helps save money by allowing you to pay less than the full value of a product,

service, or investment, thereby preserving more of your funds. In personal finance, purchasing

discounted items means you get the same value for a lower price, which reduces your overall

expenses and allows your budget to stretch further. During festive seasons such as Christmas, many

companies offer products at discounted prices to attract shoppers and boost sales. Retailers like

Melcom, Shoprite, and Game typically run promotional campaigns that allow consumers to

purchase goods at reduced prices. Common discount strategies include clearance sales and Buy

One-Get-One-Free (BOGOF) offers, which provide substantial savings on selected items.

Additionally, Black Friday Sales, which occur during the holiday season, offer deep discounts

across various product categories. By taking advantage of these promotional offers and discount

coupons, consumers can significantly reduce their expenses and preserve additional funds.

Living within your means

To maintain financial stability, it is essential to exercise discipline in spending and develop the

ability to distinguish between needs and wants. Individuals must actively resist overspending and

minimize impulse buying, especially during high-spending periods such as December, when

attractive and flashy products are heavily marketed. Failure to live within one's means can lead to

budget overruns and financial strain. Practicing cost-saving measures, such as preparing meals at

home rather than dining out, can significantly reduce daily expenses. Additionally, deferring non

essential or major purchases can help improve cash flow and enhance savings in the short term.

Working hard to win bonuses at workplace

Some companies enhance employee motivation by setting performance targets at the beginning of

the year and offering incentive-based rewards upon the achievement of these goals. Employees

who meet or exceed their targets may be rewarded either in cash or in kind, depending on the

organization’s incentive structure. Demonstrating high performance and commitment at the

workplace can lead to bonus income, which positively impacts personal cash flow and supports

the fulfillment of short-term financial obligations.

Side Job

Individuals with marketable skills beyond their primary employment can leverage these abilities

to engage in side income opportunities, thereby enhancing their overall earnings. Engaging in

buying and selling products online, particularly through platforms such as WhatsApp and

Instagram, can serve as a viable source of additional income. Furthermore, acquiring new skills,

especially in high-demand areas such as digital and soft skills, can open up further income

generating avenues. With consistent effort, these skills can be monetized and potentially developed

into passive income streams, contributing to long-term financial stability and growth.