KEEPING WISE LOCKDOWN HABITS

IT’S Lockdown Freedom Day in England, although life might not feel much different for anyone moving to a higher tier.

But there’s the hopeful prospect for millions of some Christmas shopping in person – or at least meeting up with more than one friend and going somewhere other than the park.

Just like last time, Lockdown 2 meant many of us spent less as we cut back on commuting, socialising and high street visits.

Almost half of us have tended to spend less in lockdown.

And while millions are also struggling with reduced incomes, some have had the opportunity to save a little extra.

Last time we were released from lockdown, we were determined to hang on to our good habits – with a third of us planning to go out less and not splurge on impulse purchases.

It’s one reason why 48% of people put their lockdown savings aside for a rainy day.

Sarah Coles, personal finance analyst at investment firm Hargreaves Lansdown, says: “This time round, Christmas could bring an abrupt end to our good financial behaviour.

“But with just a few weeks until the big day, and the thought that we could be locked down again at any point, it can be tempting to rush headlong into festive spending.

“So it is worth considering how we can avoid throwing all our good habits away the second the doors open again.”

There are a few promises we can make to ourselves that can help us keep some lockdown money-savings habits we have picked up.

I’ll carry on saving

Many started a savings habit by accident in lockdown, when we had little other choice, but when we’re out and about again it doesn’t happen by accident.

We need to make a conscious effort to save.

The easiest way is to transfer cash by direct debit into a savings account on the day after payday, before you have time to see the money, let alone spend it.

I’ll prioritise properly

Working out what’s important to you is the best way to make sure you don’t end up squandering cash on things you don’t really value.

One trick is the list of three, where you decide what your top three priorities are.

So, for example, this might be keeping the kids entertained, keeping everyone safe, and enjoying the outdoors.

Then before you spend anything, you can consider whether it goes towards any of these priorities.

You don’t have to rule absolutely everything else out, but it’s a useful way to work out what kind of spending is worth the most to you.

I’ll not panic about Christmas

This is a surefire way to spend too much, buy rubbish and suck all the fun out of the occasion. If you’re worried about getting everything done in time, nobody is going to mind if you do less.

Talk to people who you think might agree to skip presents for a year. Ask your family what their favourite bits of Christmas dinner actually are, and see if anyone is happy to meet up when restrictions are lifted to exchange presents then instead.

I’m going to give myself five

The trick is to stop yourself rushing into decisions and make expensive mistakes. It’s also a great way to give you time to consider whether something might be a scam.

Some people wait five minutes, some wait five hours and some wait for five days between putting an item in their shopping basket online and checking out – to make sure they’re not acting on impulse.

I won’t buy anything on sale I wouldn’t buy at full price

It’s a useful rule to prevent you from talking yourself into buying things for the sake of it during festive sales. If it wasn’t on your list in the first place, then “it’s a bargain” isn’t enough of a reason to add it.

I won’t shop to cheer myself up

We shop for all sorts of terrible reasons – to cure boredom, to entertain ourselves and to cheer ourselves up.

The only legitimate reason to shop is because you actually need to buy something.

If you are about to head out on a spending spree for some other reason, find a better alternative, like a cuppa, a soothing bath or a chat with a friend.

Wait before checking out items so you’re not acting on impulse

No borrowing to buy things I don’t need

We’ve all done this, and then when the credit card bill arrived we’ve deeply regretted it. It’s OK to buy things you want rather then need, as long as you can afford it.

If you start buying when you can’t afford it, you’ll start building up debt problems.

I’m not going to go out, unless I want to

It’s nice to get out after so much time at home, but it doesn’t mean we have to say yes to everything.

Friends might want to meet up for Christmas celebrations, which often involves a variety of spending – from new outfits to the event itself.

There’s no reason to swerve all fun, but just because you’re allowed to go out doesn’t mean you should feel obliged to.