Prioritize, simplify, save during the pandemic
The pandemic has caused many people to reassess their priorities. There is talk of moving out of the city, simplifying life and saving more money.
“I’m not going to spend money like that anymore,” my millennial daughter told me recently, talking about past shopping sprees on handbags, jewelry, and yes, lattes. “Financial security is fun now.”
This from the same person who, until recently, has annually paid to upgrade to the latest version of smartphone ever since she purchased her first Juicy Couture Sidekick in 2005.
But, as usual, my daughter alerted me to a growing trend.
Developing new financial goals
In an annual survey, consumer research firm The Family Room LLC identifies prevailing trends in more than 150 psychological drivers.
Determining changing priorities from year to year helps identify emotional hot spots among different age groups. The latest results show dramatic shifts in attitudes, the company said, including a 14% increase over the previous year’s survey among parents in “making my life simpler and less complicated.”
Changes are happening in the way people save, too. Among U.S. adults who say they developed new financial habits during the pandemic, 58% said they plan to continue cutting back spending on “wants” in 2021, according to a recent Nerdwallet survey. Many (36%) plan to continue building up general savings, and 30% will continue stashing money in emergency savings. Here are some ideas for simplifying your life and morphing your money habits from carefree to careful.
The gift of prioritization
Leo Babauta, 46, a writer in Southern California, is on a mission to help people “implement Zen habits in daily life.” He believes the pandemic has given us the gift of prioritization.
“When things are falling apart, it helps us realize what’s most important to us,” Babauta said. “This will help us to simplify our lives as we move forward because simplicity really boils down to two steps: Identify what is most important to you, and eliminate everything else.”