Make your budget add up after lockdown
Life’s opening up again, but that doesn’t mean you have to blow the budget.
Here are five post-lockdown financial tips from Sasha Evans, personal finance expert at Moneysupermarket...
1. Reset your budget
Lockdown prompted a change in spending habits for many of us, but another new reality will mean a new budget is needed.
You could split your outgoings into different categories – and set a monthly budget for each one. Fixed outgoings could include mortgage, rent, utilities and any new commuting costs.
Flexible costs include outgoings you can’t live without but those where you could reduce the cost. They would include your essential weekly shop. You could include another category of wants, including treats such as eating out and takeaways.
Some banks’ apps will even allow you to set up separate pots for different categories of spending.
2. Prioritise your repayments
If you have had a payment holiday during the pandemic, make sure you know the facts, including how this will affect your loan repayments going forward, whether the debt has increased and whether it will now take longer to pay it off.
If you have any concerns about your new arrangement, get in touch with your lender as soon as possible. They should offer you tailored support based on your circumstances.
3. Save – but be realistic
According to Moneysupermarket research, 50% of us managed to save money during lockdown, as our regular outgoings have been lower than usual.
If you’ve been one of these people, it could be wise to review your savings goals and see what is now realistic, with opportunities for spending increasing and some people potentially facing a rise in commuting costs in the coming weeks and months.
Don’t despair if you’ve struggled to save. Starting small can help develop a regular habit. Go through your budget and work out an amount you know you can save each month, then shift this money into a savings account on the day you’re paid.
4. Stick with the good habits
Brewing your own coffee, exercising at home, rather than in a gym, or even – if you’re brave – getting a partner to cut you hair could all be habits you want to continue. Or perhaps there are a few spending behaviours during lockdown which you would be better off without. If you’ve been overspending on online shopping or food delivery apps, now might be the time to reduce these.
5. Save on socialising
Catching up with people you haven’t seen for a while doesn’t need to break the bank. Putting aside a fun fund could help you reach saving goals for any big events you’ve got lined up. Also look out for vouchers and discounts on eating out. At this time of year, outdoor picnics are also a great option.