Unbiased, the UK-based financial advice platform, shared insights on improving finances – including reviewing mortgages regularly – as a way to tackle Blue Monday, identified as the ‘most depressing day’ of the year.
Blue Monday typically falls on the third Monday of the year, in this case 20th January.
Research found that more than 1.5 million individuals in England faced problem debt and mental health issues, according to the Money and Mental Health Policy Institute.
The beginning of the year, a popular time for financial advice, saw 28.5% of Unbiased’s enquiries occurring in the Q1, peaking in January.
Unbiased’s findings revealed that individuals who received financial advice experienced a clearer understanding of their financial goals (36%) and reduced financial stress (26%).
Unbiased suggested several steps to improve individual finances.
First, creating a budget can help track income and expenses, identify savings, and eliminate unused subscriptions.
Building an emergency fund with at least three months’ worth of essential expenses was also recommended.
Unbiased encouraged people to consider both short and long-term financial goals to motivate improvements in finances.
Paying into a pension was another essential step, with auto-enrolment allowing most employees to contribute at least 5% of their salary, matched by employer contributions of 3% or more.
Considering insurance policies, such as life insurance or income protection, can provide financial support in difficult times.
Regularly reviewing mortgages was also recommended to understand interest rates and avoid moving to a higher standard variable rate (SVR).
Finally, obtaining professional financial advice can be beneficial for significant life goals, such as buying a home.
Karen Barrett, chief executive and founder of Unbiased, said: “It can be scary tackling your finances, but you can do it – even if it’s by taking one step at a time.
“Having a good understanding of your finances and your short and long-term goals can help motivate you to build better habits – and boost your mental wellbeing.
“Also, by having an emergency fund in place, you can have peace of mind regardless of what happens.”
