Are you clueless about how to save money after COVID? Due to the unavailability of entertainment, indoor dining and more, Canadians have been saving 13% more during the pandemic than before. Even if you have been enjoying your increased savings during the lockdowns, you might feel a greater urge to make up for the time lost and revenge spend. This week on our Live, I shared my insights and tips on how to tame your shopping dragon.
What have Canadians been saving on during the pandemic?
With the lockdowns and restrictions, Canadians had less opportunity to spend on entertainment, takeout, vacation and even weddings. Although this may have prevented you from enjoying the small or big moments, there is a silver lining of being able to reach your financial goals easier with the money you have been saving. If you haven’t had the opportunity to have the big wedding or birthday celebration you wanted, you may have saved enough money to put a down payment on a house you have been wanting to move into!
However, your urge to spend more on events, personal care, food and other activities after a long time of lockdown might suppress your goal to save. If you want to learn how to save money after COVID while enjoying your time after the lockdowns, read our tips on how to tame your shopping dragon and prevent revenge spending!
How to Prevent Revenge Spending and save money after COVID:
Acknowledge the budget-friendly ways to have fun:
Do you feel like you’ve earned the right to pamper yourself after a crazy year? Even though most people had a tough 2020 and early 2021 with the lockdowns, we urge you to make a list of things you’ve enjoyed during the pandemic. Maybe you’ve found time to read some books you never got a chance to before, started exercising, found a new hobby or spent more time with your family. Acknowledging the ways to have fun without spending money might help you lower your urge to spend. Instead of going to a patio, bar or cafe, you can invite your friends to have a night in and have as much fun for a lower cost.
Revisit your budget:
Your expenses may have been very low during the pandemic with limited opportunities to spend but that may not guarantee low expenses in the upcoming months. As more Canadians spend time home, the price of items such as groceries, gas, home renovation tools and more have gone up, possibly making you spend more on things you have been saving on before. If you have plans to make up for the time and spending lost by taking a big trip or having a big celebration, make sure to build in the costs associated with your budget to make sure you can afford it without hurting your savings.
Set your financial goals:
Your financial goals may change over time and it’s important to keep track of what you want to achieve and how. If you have goals you need to save for, write them down and add them to your budget to make sure you can hit your goals. If focusing on the amount you need to save each month overwhelms you, you can set up an automatic savings plan. An automatic savings plan can allow you to put away the money you need for your goals before you even start spending from your monthly income.
Research suggests that nearly 1 of each 4 Canadians will be spending more on restaurants, movies and social activities. Although we encourage you to not revenge spend your savings on, we suggest you find a balance between things you want to enjoy and your budget. If you want to go out to more patios and activities, our recommendation is to factor in your big splurge into your budget and find ways to hit your financial goals.
We hope you enjoyed reading our blog on how to save money after COVID! Check the full live chat here. You can find our live chats and more of the latest financial news on our News Blog. Stay tuned to learn more tips on a new topic each week on our Instagram Live at 5 on Instagram! Aside from our live chats, we post daily financial updates on social media! Follow us on Linkedin, Twitter and Facebook and Instagram.