HOW TO KEEP YOUR LOCKDOWN SAVING HABIT GOING FOREVER
The average household spent £200 less a week when restrictions first came in. Here’s how to keep saving while not completely depriving yourself...
The pandemic has hit a lot of us hard financially, but one thing it has forced most of us to do is spend less. For months, we were unable to eat out, get our nails done, or take day trips – so it’s no wonder the average Brit saved. A study by Money.co.uk showed that 71 per cent of UK households cut spending during lockdown, with the average weekly saving being £221.
“Our spending on nonessential items plummeted,” says financial advisor and dad-of-five Sam Jennings (jenningsfp.co.uk). “Many households spent less on things like meals out, petrol, clothes, beauty treatments and takeaway coffees.”
While there’s no doubt we should support the economy to get back on its feet if we can, for some of us, saving or getting out of debt will be a priority. We asked Sam how to continue putting money aside…
CONSIDER BUYING OR REPAIRING A BIKE
We’re being advised to avoid public transport where possible and most of us have enjoyed spending less money at the petrol station. If you can cycle somewhere, especially to and from work, you can keep your transport costs lower and get fit at the same time. You can apply for one of the half-a-million
£50 vouchers the government
is providing to help people get their bikes repaired. Apply on the Energy Saving Trust website – Energysavingtrust.org.uk. You can also get a discount on a bike with the ‘Bike2Work’ scheme – visit Bike2workscheme.co.uk.
WORK OUT WHERE YOU CAN MAKE CUTS
Think about where you spent most of your money before lockdown. Apps like Money Dashboard, and bank accounts like Monzo, can help. Identifying what you spend your money on is the first step, and you can then start to make changes and set measurable targets, like eating out once a fortnight rather than weekly.
CHECK OVER YOUR DIRECT DEBITS
Lockdown has made us reflect on what we need and reviewing your monthly expenditures can really help. Making changes like choosing between Netflix and
Amazon Prime or cancelling your phone contract for a SIM-only deal can save you a significant chunk every month.
SHOP MINDFULLY
With many shops and all restaurants not being available to us during lockdown, we couldn’t just spend without thinking about it. Try to stay in that mindset to avoid impulse purchasing. Every time you go to buy something non-essential, wait 24 hours. Often the urge to spend will have passed – and, if you’re shopping online, the company might send you a discount code if you leave things in your basket overnight.
HAVE TREATS AT HOME
Lockdown made many of us appreciate the fun of staying in, like having a glass of wine with a friend over Zoom or spending time making a special meal at home. Cutting back on going to a pub or restaurant and instead making an evening of it at home will help you save. Cook a threecourse meal on a budget or buy a supermarket “dine in” deal for £10, dress up as if you were going out and sit at the dining table to eat it. You’ll get the restaurant experience at home.
SAVE TO EARN MORE INTEREST
If you’ve found ways you can save, then consider where to put your savings. Prioritise paying off debt first and transfer any debt to a zero per cent credit card if you can. Then save a “back up” fund, usually recommended to be three to six months’ wages after tax for emergencies – you should be able to get to this money without penalty but shop around for a good interest rate on a savings account. If you have cash you want to use for long-term savings (over five years) then opening a stocks and shares ISA is a great option.