10 LESSONS MONEY EXPERTS HAVE LEARNED THIS YEAR From preparing for a crisis to spending your money more mindfully

We asked some of our favourite finance insiders to reflect on insights they’ve gained during the global crisis – and how their learnings can help you do things differently in future

The coronavirus pandemic has brought with it financial uncertainty that is touching each and every one of us in some way. By being forced to press pause on how we usually live our lives, we’ve had time to reflect, and it’s clear that we are already doing things differently. According to a recent survey, the lockdown has resulted in nearly nine in 10 adults having saved money on everyday expenses, with one-third putting more into savings accounts. In addition, 45% of consumers said they’re making more sustainable choices when shopping and will likely continue to do so. As we start to rebuild and look forward, now is a good time to set new financial goals and priorities; as they say, you should never let a good crisis go to waste! We asked 10 financial experts to share their new ways of thinking.

1 ‘Money is energy and we need to keep it circulating’

Jo Fairley, co-founder of Green & Black’s, now runs beautybible.com and The Perfume Society.

Like most people during lockdown, I cut back hugely on spending to focus on the basics (food and gin!) because of uncertainty. But as the owner of two small businesses (and having started Green & Black’s with a £20,000 nest egg), I realised that I needed to support other small businesses at this difficult time. Although I couldn’t really justify buying ‘treats’ for myself, I did some Christmas shopping and bought birthday presents and other gifts for downcast friends via small local retailers that either went online, sold products via Instagram or even displayed notes in their stores saying, ‘If you see something in this window, call the following number to buy it.’ If I buy a book, a pack of bamboo socks or a beautiful ceramic from a local retailer, that helps keep it ticking over. Chances are, that retailer will spend the money locally, too, or keep it circulating in some way, and so it multiplies, being spent several times over. For me, it’s a huge and very real lesson in how economics works. If I’d sat on that money, it wouldn’t have circulated.

WHAT I’VE LEARNED

I realise more than ever that I have a choice about the businesses I support through my spending. As a supporter of small ventures, I want to see them survive and thrive.

2 ‘Think about the unthinkable’

Sarah Pennells is a former financial journalist who is now head of financial capability and guidance at Royal London.

It’s hard to think about the nasties in life, such as serious illness or death, which is one reason why so few of us have a will. I put off drawing up my own will for a few years, even though I knew it made sense to do one. Once it was done, it was reassuring to know that the money and possessions I have will go to those whom I want to leave something, rather than those the law says must inherit if there’s no will. Both my parents had dementia and me and my sister had an ongoing power of attorney for them, which gave us the legal authority to look after their finances when they could no longer cope – and that made helping them much easier. My own parents’ deaths prompted me to update my will and take out a power of attorney. I’ve also put together a document with information about the online accounts I have, so there’s less detective work to do after I’m gone. The coronavirus crisis has brought home all too clearly that life can take the most unexpected and tragic turns, and I know of people who were unable to get a will drawn up because of the lockdown. WHAT I'VE LEARNED

Don’t assume you have time to get round to those things you’ve been putting off.

3 ‘Tackle your finances as a team’

Anna Williamson is a TV presenter and expert on Channel 4’s Save Well, Spend Better.

Money issues are the number one cause of relationship breakdowns. It’s always better to talk openly and honestly about your finances and nip any problems in the bud, rather than leaving them to get to the point where the relationship may not be salvageable. I’m currently the main breadwinner in our household, as my husband is studying full time. However, as I’m self-employed, the uncertainty around my income caused by the coronavirus pandemic was a real concern for us. The first thing my husband and I did was sit down together to review our outgoings, cut back on unnecessary spending and make a financial plan to see us through the next year, balancing our expected income with projected spend on essentials. This will hopefully get us to a point where we’ll be living in more secure times again. It’s helped prevent either one of us feeling pressured or resentful, as we’ve worked as a team to plan how we can best manage our family’s financial needs. WHAT I’VE LEARNED

Going forward, we’ll continue to make regular checks on our joint accounts and review all the Direct Debits we have for essential things, such as utilities.

4 ‘When spending money, do it mindfully’

Gaby Huddart is the editor-in-chief of Good Housekeeping.

There’s no doubt that my spending patterns have changed significantly since before the start of lockdown. No more train and bus fares to work, no expensive frothy coffees on the way into the office or fancy sandwiches at lunchtime. But, while I’ve made economies on the things that barely registered in my thoughts, I’ve made some other significant purchases over the past few months that I considered carefully and then, when I’ve gone ahead, have really appreciated. For instance, the top-quality exercise bike I bought early on in lockdown that has proved a godsend for my two very fit daughters – both have used it for at least an hour every day and, even if it’s overlooked later on, it has helped them hugely during this challenging period. I also ordered an expensive, whizzy office chair from John Lewis & Partners – it was more money than I wanted to spend, but as I sit on it for about 10 hours a day, I’ve been so grateful that it’s supported my back and made me feel comfortable. I’ve also been regularly ordering books from Waterstones and other book stores, as we’ve had a virtual GH book club, meeting online; something that has given me great joy. WHAT I’VE LEARNED

It’s very easy to ‘fritter away’ money, as my mum always used to tell me, and not register where it goes. Finally, in my 50s, I now understand this and will be more conscious about how and where I spend. Spending is vital to our economy, but now I’ll do it with more consideration. I work hard for my money, so when I spend it, I think it’s important to take pleasure from it.