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The Impact of the Pandemic to People’s Spendings and Savings

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. It has been a tough year for all of us, and managing money has been more difficult than ever as people are more conscious of their finances now compared to normal settings without the pandemic which drastically affected the global economy’s status.

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 your money. 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 since it can be used for emergency purposes. This also helps you avoid debt and reduce financial stress.

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.

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