The sun is out, lockdown has passed, and it look like total freedom just be in sight.
The long-awaited decision of whether the last round of restrictions will be lifted has passed - and it looks like it will be 4 weeks until we can do away with restrictions altogether.Events that now feel like distant memories – unlimited house guests, big weddings, and nightclubs – could be on the horizon.
Nevertheless, spending is already set to have a significant rise since the opening of pubs, restaurants and shops.
While Brits have flocked out to enjoy our well-earnt freedom, some of us may be feeling a little financially stung. So, we have compiled 4 tips to ensure you make the most of this Summer of spending; without the financial hangover.
Financial awareness is not just about knowing how much you spend, it’s also about knowing what exactlyyou’re spending your money on.
While the majority of us Brits – 54% according to one study - spent less and saved more during the COVID-19 pandemic, there was a surge in spending in certain areas. Lockdown saw us splash our cash on fitness gear, takeaway deliveries, and even an unprecedented 22.7% surge in the purchasing of flowers.
For a lot of us, our spending priorities changed quite considerably. This has led to a few ‘switches’ in what is financially important to us. The ‘return of normalcy’ is not necessarily true when it comes to our money habits, and the purchases we prioritise.
As spending on eating out, holidays and the like are expected to rise, it may be worth considering what areas of your spending need to take a dip to compensate for this. Or, you could totally decide eating out is not as important to you anymore. It’s worth reflecting on how you can get the most joy from your money.
Ok, so this is the boring part – but also the part vital to reducing any future financial stress. The post-lockdown spend is set to be monumental. In fact, a study by Scottish Friendly and the Centre for Economics and Business Research has shown that households plan to spend 26% of their lockdown savings in the next few months. That’s a startling £50 billion collectively.
And hey – there’s nothing wrong with a splurge. But there is a way you can plan for it without sucking out all the fun.
You can easily adjust your budget to squeeze in some extra spending – or saving. You could add an extra £100 play money each month, or just a pot to spend for as long as the sunshine lasts.
To make things easier, you can even split your budget into different categories with an app like WageboxFor example, adding another £50 to your eating out budget for the British summer. This way you can avoid any post-splurge stress.
Across the country, many Brits have received payment breaks to help us get by during the COVID-19 pandemic. Unfortunately, many of these breaks have, or are soon coming to an end.
It’s worth checking when your payments begin again, so you prepare. Take the time to contact your lenders and double-check the amount due and by which date. Then, budget and set aside money accordingly.
If you are concerned about meeting these increased costs, don’t hesitate to seek advice accordingly.
Ever heard of a social hangover? Perhaps not – but it’s likely you’ve felt it. As we are all returning to social engagements in groups and outside the home, a lot of us are feeling unusually overwhelmed and drained after going out.
There can be a lot of pressure to see everyone you haven’t in the last year and a half. But cramming these social engagements into a matter of weeks could be way too much for your emotional or financial wellbeing. Try instead to take it slow, relax, and space out your social engagements.