Blue Monday and the Piggy Bank Principle

Posted by siteadmin on Friday 16th January 2015.

The Holiday season is now just a faded memory. But for some people the high jinks, gift shopping and partying is a hungry chicken making its way home to roost as Blue Monday is looming.

For those of you not familiar with it, Blue Monday falls mid to late January and is reportedly the most depressing day of the year.

So depressing is this date, that a mental health charity researched a formula showing why it’s such a miserable day. It’s called WTD and goes as follows:-

  • Weather - The lack of daylight and middle of winter make people feel down
  • Time - The amount of days passed since the fun and games of Christmas and the New Year and the return to ‘normality’
  • Debt - Credit and Store card bills start landing through the letter box

Now nobody can do anything about the weather and the passing of time. But, and it’s a big but, you can with planning and a disciplined budget carefully constructed avoid the debt related downer.

To use a football management saying ‘It’s a case of controlling the controllables’.

If you work out what you have available to spend without stretching yourself too much and stick to it, then things fall into place.

Sounds really simple right? Yes it is. And so is what I call the Piggy Bank Principle, which is probably our first experience in the world of financial planning.

As children, many of us were given a piggy bank to save our pocket money to put aside for a special treat. Or for the really forward thinking youngster, to put money aside to build up a nest egg.

Indeed, generations before mine used to use tins to accumulate money for separate elements of their household spending.

The foundations and guiding principles of discipline and planning ahead are there from the off and create good, budgeting habits which can last a lifetime. They can apply to other aspects of life too.

Maybe if more people took on board the Piggy Bank Principle, Blue Monday wouldn't be so blue.