The first month of the year is financially tough for many. Tomorrow begins perhaps the poorest week of the year, with a few days left until the January salary arrives.
Américo Fernández is a private economist at SEB, and says that the first weeks of the year tend to be particularly tough for many households.
– If we look at statistics, the first weeks tend to go down in consumption, above all because you have big holidays like Christmas and New Year behind you, he says.
Fernández advises consumers who are having extra tough financial times now not to panic and make decisions that could affect the bank account in the long term.
– When you suffer from panic, you don’t make wise personal financial decisions, but you might start taking SMS loans or some other type of consumer credit. It’s not an emergency solution I recommend, because it risks making February and maybe the rest of the year tricky when you have to pay that back, he says.
Think “many streams small”
Instead, you should think according to the motto “many small streams”, he says.
– There will not be a solution, but you have to work on several fronts.
For many, food is a big expense culprit. If you are running out of money for the coming days, Fernández calls for an “absolute buying stop”.
– It is necessary to turn the fridge and pantry inside out, you can make it a fun challenge to find new recipes to cook from the goods that are at home. There is a lot you can cook with just a few ingredients, he says.
Sell unused clothes
If you have bills to pay back, he recommends calling the company or supplier and asking for a week’s delay, to avoid penalties that can come if you don’t pay on time.
For those who need to bring in a little extra money to get by before the salary arrives, he also advises looking for clothes in the wardrobe or gadgets in the storage room that can be sold.
– Take care of it and post it on the sales sites. It may not be more than a couple of hundred Swedish kroner, but in this case it can be enough as support, he says.
Can apply for amortization exemption
If you have suffered from unemployment or sick leave, or have gone on parental leave, and have expensive mortgages, you can contact your bank and apply for amortization freedom, says Fernández.
– Then there is the possibility to pause the amortization for a number of months in order to have a better financial situation when things are tough, he says and emphasizes that it is an option in the longer term.