Helpful Spending Habits from Quarantine

The lockdowns from this past year have had a big impact on all of us, especially those who lost their jobs, but through the hard times we can still find silver linings. Quarantine forced many people to change their spending habits, and those new habits can help you save money in the long term. Let’s look at four spending habits quarantine taught us.

1. Changing the definition of “essential.” Before quarantining, you were likely stopping by the coffee shop every morning or going out shopping every weekend, but that probably changed. Once many places closed, it changed our perspective of which purchases were necessary and which ones were not. Even though places are re-opening and restrictions are being lifted, that doesn’t mean you have to go back to those old spending habits.

2. Cooking at home. Since restaurants were forced to close, many of us got back to basics and cooked more meals at home. That is a great way to save money by using the groceries you have instead of eating out all the time. It’s okay to treat yourself now and then, but don’t go crazy now that more restaurants are open.

3. Controlling debt. People who lost jobs or had reduced income during quarantine also became very aware of the weight of their debt. Many people realized how much money they had to pay towards interest or debt. Now is a great time to make a plan for how to pay off that debt faster. If there are other purchases you can eliminate that are not “essential,” cut those out and start putting more money towards your debt.

4. Saving for the future. Quarantine is a situation many of us did not see coming, and it probably made you realize the importance of preparing for emergencies. You can start an emergency budget that you use only for true emergencies. You can also start putting money into a savings account automatically. Automating the process will make it easier for you to stop spending and save more.

While this has been a tough year for many, we have been resilient and learned habits that can have a future benefit. If you still have questions or need help managing your finances, call AMJ today. AMJ helps individuals and businesses in the community manage their finances and plan for the future!

SOURCES

https://www.discover.com/online-banking/banking-topics/quarantine-money-lessons/

https://www.apa.org/members/content/managing-money-coronavirus