Now that we can see the light at the end of the tunnel, it’s time to work out your finances and think about ways you can enjoy life out in the open post-lockdown.
How has the pandemic helped British people save their money?
During the lockdown periods, many people took it upon themselves to save up money as they weren’t going out and spending like they normally would. With the UK having saved an estimate of £100bn over the last year, it’s suggested that this money could help rebuild the economy if spent right.
As many were furloughed, they weren’t having to travel to work. So, money on things like petrol, public transport, and rail cards was able to go into savings. Not to mention the fact that leisure facilities and hospitality venues were closed, so another large chunk of this money was then saved.
The Bank of England’s chief economist says that “People are using their involuntarily accumulated savings on a new house or a new car, plenty of that pent-up demand is still in the tank, there are plenty of those savings still to be used.”
How much will people begin spending as lockdown restrictions continue to ease?
Monese has generated a survey that suggests more than half of UK adults (51%) are worried about how much more money they’ll be spending now Covid-19 restrictions are easing.
As venues, event spaces, and other activities begin to open again, it’s suggested that we will start to spend more on luxuries and getting out of the house.
Millennials (25-34s) are the most concerned about spending more money as the nation eases back into normality (72%). London is home to the greatest number of money-worried residents (67%).
But where do millennials think that their money will be spent? Well, Bristolians expect to splash their cash on pints at the pub (52%) while Loiners will be tucking into restaurants meals (53%), and those living in Belfast (33%) and Glasgow (32%) are most eager to treat themselves to a trip abroad when restrictions permit.
Here are five tips to keep an eye on your spending whilst still enjoying yourself
By setting yourself a budget, you won’t be tempted to go over this limit. Keeping track of your finances on a spreadsheet or app is a good way to work out your outgoings and income for the month. If you’re the type of person who lives payslip to payslip, budgeting can help you get out of this bad habit and leave you with some money left over for the finer things in life.
Set yourself goals and targets for what you want to do with your money. Are you wanting to buy a new car, go on your dream holiday, or settle down with your first home? Set aside an amount of money each month that is dedicated to only being spent on your goal. This way, you’ll get something worthwhile with your money that can become a big investment.
Keep your savings as they are
They’re called savings for a reason! Don’t be tempted to dip into them, unless it’s an emergency situation. By spending your savings on non-essentials, you’ll end up depreciating their value and what starts as a ‘one time thing’ will end up seeing you spending all of your hard-earned savings before you know it.
Spread out your trips
We know how exciting it can be to be allowed that first taste of freedom, but don’t go blowing all of your cash at once. Spread out your outings as this will give you something to look forward to and won’t break the bank. Or you could check out which activities are free in your area.
Think before you buy
Do you really need it? Like, REALLY need it? If it’s something that will make you overdrawn or go over your budget, and you can live without it, it’s probably worth holding off until next payday. Try sleeping on it, then if you wake up the following morning and still need to buy, you can treat yourself.