HomeMoneyManaging your Money

How to control your spending post-pandemic


7th Jun 2021 Managing your Money

How to control your spending post-pandemic

All cancelled activities are starting to slowly make a return and the world is finally re-opening again. This also means that people’s pockets are opening again to spend some money on things like travelling that many of us have been longing for.

Many expressed how they managed to save money in 2020 by simply not going out to restaurants since they were closed, not travelling since it was not allowed and not making any big purchases.

All that combined with some government schemes, many managed to save lots during the year of the pandemic. However, now that the world is opening up its doors again, people are ready to spend some money and splurge a bit more than usual.

According to bea.gov, within the first quarter of 2021 spending already increased by 6.4% and it’s only expected to keep on going higher. This overspending is also known as revenge spending, simply making up for the time you could not spoil yourself. Unfortunately, this can have a negative aspect on your financial well-being.

Be careful with Online gambling, shopping and travelling

To avoid overspending and therefore, keep saving more money it is a great idea to start setting a budget. It is absolutely understandable that you might want to splurge on shopping, go out and eat at your favorite restaurant or travel to your favorite destination. However, all this must be done in a controlled manner. To do so, you should consider setting a budget for yourself. This could be calculated daily, weekly or monthly, depending on what is ideal for you.

Always try to set aside some money that you can use to spend on your hobbies. If you like online gambling, new casinos can sometimes be a better choice to opt for. Nowadays, you will find a number of tools that you will be able to use to help you save and keep track of your spending at most casino sites.

Also, be aware of the prices that are rising due to the spike in inflation. Therefore, it is very important to look around and take note of all your options. If what you want is abnormally high in price, simply wait a few months and save a bit of money until prices start decreasing again.

Do not Go Crazy with Your Savings

Post-pandemic, many wanted to use their saved money and spend it on expensive dinners, luxurious treatments, home repairs, vacations, a new car, clothing and new furniture.

Obviously, when the world opens up again, you would want to treat yourself to something nice. However, you should also take the opportunity to check your progress towards your financial goals. A tactic many use is that of having more than one savings account to allocate different types of saving, including an emergency fund, a future investment and a special occasion, besides others. By doing so, you will have a clearer idea of your financial stability and how your money can be spent wisely.

Before going fully back to normal, take your time and reevaluate your life goals, both long and short term. Then, make all the necessary personal and financial adjustments to achieve all your goals.

Keep up with the top stories from Reader’s Digest by subscribing to our weekly newsletter.