Stop FOMO eating up your savings
After being ripped up in 2020, our social diaries are starting to grow once more, as lockdown restrictions ease. And as a result, people expect to spend around an extra £188 per month this summer, according to research from Topcashback.co.uk.
“After living under restrictions for months, it’s natural to go out and spend money on things we haven’t been able to,” says Topcashback UK director, Adam Bullock, right. “It’s important not to guilt-trip ourselves for spending more, but it’s also vital we don’t blow everything on stuff out of impulse or fear of missing out.”
Here are five Topcashback tips to help curb feelings of FOMO – and your spending...
■ It’s not about saying ‘no’ to plans: Instead, work out priorities, set spending goals, track your budget, and review your spending each month to see where you can improve.
■ Start each month as you mean to go on: Pay yourself first by setting aside a portion of your salary into savings each month, before you start spending. This can help stop you overspending.
■ Set up a ‘fun fund’: While six in 10 (61%) people have set aside money during lockdown, 30% say they’ll use some or all of these savings on additional spending as restrictions ease.
But setting money aside in a ‘fun fund’, for unexpected and spontaneous spending days, will help you feel less guilty. Some apps can help by rounding up spending and saving the change so you start saving without feeling the impact.
■ Make the most of spending: Always aim to cut the costs. Websites such as Topcashback give money back when you spend online. Put that towards takeaways, experiences, or restaurants using e-gift cards.
■ Be honest: One in six (15%) people have been unable to save during the lockdowns and 37% feel anxious about finances.
If you’re worried about the cost of socialising, tell your friends so they’ll understand and make more budget-friendly plans.