Almost every aspect of our lives has been negatively dragged down because of the COVID-19 crisis, from our finances to the risk of our health. Oak Financial Advisor Perth remind us that 2020 was a tough year for all of us and managing our money has been made much more difficult than ever, even as we are becoming more conscious about our finances. The pandemic has changed the normal economy and the normal financial setting and now we need to adjust to the changing conditions and adapt our finances to meet them.
The pandemic affected individuals differently but there is one thing that all of us can agree to since all of us are currently experiencing it, and that is hardship. To help contain the COVID-19 pandemic, physical stores and businesses were forced to temporarily shut down. Aside from that, It is no surprise that the pandemic caused a lot of people to go unemployed and financially distraught, which made people value their money and realize that with the current situation we are facing, it is indeed better to spend less and to save more.
2020 Expenditure
Compared to the past years without the pandemic, it has been observed that people are noticeably spending less because of various reasons. The top reasons are because of unemployment, pay cuts, business shutdowns, less jobs available, and several other reasons that are associated with finances.
Even major holidays and events such as Christmas and Halloween’s expenditure have decreased significantly which is why it is expected that the daily spending habits of consumers have changed as well that instead of spending their money, it is best to spend less and save the rest of the extra money for future purposes.
Change of Consumer Spending Habits
Aside from the top reasons why people are spending less, another factor to consider is the increase in prices in products as well, including common necessities such as face masks and face shields. With the increase of demand from consumers, suppliers have increased their prices among their products, which led people to be more cautious in their spendings.
People used to spend their money care-free before the pandemic but with the increase of prices, even rich people think twice about buying crazy expensive things since there are more important things to prioritize now with the pandemic going on.
Tips to Manage Finances
There are several alternatives available out there to help you manage your finances. It could be as simple as budgeting and saving with The Children’s ISA. As long as you are consistent with these tips, it is guaranteed that you will save a lot of money even after the pandemic is over.
Budgeting
Budgeting is easy to plan and create but hard to follow. To help resist the temptation of overspending, plan a budget that is perfectly enough for you to be content. It could be a weekly budget or monthly budget, as long as you are fine with the budget you have planned on.
Saving
Having extra money is another tempting factor that leads to a lot of people to go on a shopping spree. Instead of spending the extra money you have, it is best to save it and open a gold IRA for emergency purposes or retirement. This also helps you avoid debt and reduce financial stress. If you need a recommendation for a trusted Gold IRA company, see Jpost Birch gold 4.8 star rating. If you also have a broken or unwanted gold and silver, it can be sold to credible gold buyers and add the money to your savings.
Search for FREE services
Staying at home also makes saving more difficult since there are various online shops out there that are always notifying you with their advertisements. When it comes to online shopping, always look for promo codes to help you get a better deal, and if you are looking for apps that enhance your photos while in quarantine, there are lots of free photo editors out there that are just as good as expensive ones.