Lockdown has changed us all for the better
Pandemic has taught us the value of spending a lot less
WE DIDN’T have much choice about changes to our spending habits in lockdown – we’ve been forced into saving money.
Many of us have been desperate to hand over cash for a haircut, a pint or two down the pub, or a holiday.
But as the weeks have gone by, and we’ve spent considerably less than normal, something remarkable has happened – a shift in our attitude towards our finances.
And now research shows many of us are starting to realise we can maybe make some of these changes in spending permanent – and save a small fortune in the process.
A lockdown study by investment firm Hargreaves Lansdown reveals only one in five of us plans to ramp up our shopping splashouts back to pre-Covid levels.
A third questioned said they would spend less in future and that lockdown had taught them having a financial safety net was more important and useful than a lot of the stuff they buy and never really use.
Sarah Coles, personal finance analyst at the firm, said: “We have realised just how much we’re wasting each month on things we don’t really value, and we’re keen to cut back.
“Our results showed women are more likely than men to have pledged to economise on impulse spending and clothes shopping.
“Men, meanwhile, are keener to cut back on the cash they spend on alcohol and expensive commutes to work.”
Here’s what the research revealed...
TOP FIVE CHANGES 1 32 per cent plan to go out less
People of all ages agreed the lockdown had made them realise that while they need to get out on a regular basis – it doesn’t have to be quite so regular.
2 31 per cent plan to spend less on impulse purchases
We haven’t been immune to these during lockdown – some people have kept delivery drivers in jobs with their online spending. But the temptation to pick things up while out and about has been far lower due to worries about catching the virus.
3 30 per cent plan on buying fewer clothes
We’ve missed out on almost an entire season of shopping, and we’re starting to realise we really didn’t miss an awful lot. Many of us have found we’ve already got enough clothes and accessories in our wardrobes to see us through all the seasons.
4 21 per cent plan to buy fewer little treats
We’ve realised how much these things add up, and by cutting out things we normally hardly even notice buying we can save significant sums of cash.
5 18 per cent plan to commute less
This could be a major cost saving if we can convince our employers to continue to let us work flexibly from home in the future.
HOW TO MAKE THE CHANGES STICK
While these are excellent goals, when life returns to normal it will be easy for our old shopping habits to return. If you want to make your new thriftier habits stick, there are a few ways you can make your spending more mindful.
1 Make active spending decisions
Often we buy things out of habit or while our mind is on something else.
If we switch to making more active choices, we properly weigh up whether we really need or want something – rather than simply chucking it in with the weekly shop, picking it up in the coffee shop or
dashing in to compulsively buy after spotting something in a shop window.
2
Press pause on purchases
Once you’ve decided to buy something, wait a while – say for 24 hours or even as long as a week.
It’s a great way to avoid impulse shopping and helps you decide whether you really need something. Also if you let it sit in your online shopping basket, you might get an email from the retailer offering you a discount, saving a little on the things you do decide to go ahead and buy.
3 Make it harder to spend
The more processes you have to go through before spending, the harder you’ll have to think about it. Try removing any saved card details from your computer and sites where you regularly shop – and take your card off your phone.
Now you’ll need to input all your details before each purchase rather than just clicking a button.
And on the go, if you stop carrying your credit card around all the time, only taking it when you are making a planned
purchase, you can’t get carried away on a whim. It’s also worth going through the mountain of emails you get from stores and unsubscribing from the endless prompts they send to lure you in to buy.
Then you’ll be less tempted to buy stuff you don’t need.
4 Identify your triggers
For many of us, spending is a way to fill the time when you’re a bit bored, which is a very expensive hobby.
For others it’s what we do when tired, sad or hungry. Consider what makes you spend and when you’re likely to be most vulnerable to this.
5 Solve the underlying issue instead
If you try to cut something out of your life without replacing it, you’ll really notice it’s gone – and you’ll simply start doing it again pretty quickly.
So once you know your triggers, find another way to deal with them instead.
If, for example, if you tend to shop as a reward after a long week, try replacing it with something else you love – like a catch-up with friends or family or a binge of your box sets.