What Good Financial Habits Can You Learn From Lockdown?

Now that you have spent weeks enjoying your own home-cooked meals, keep up the good habits and you will be saving a fortune in restaurant bills. If you find yourself eating out three or more times per week, your restaurant habit is a major expense without you even realising it.

During lockdown you have probably spent much less. Imagine the money you normally use for entertainment, those impulse purchases, and your daily cappuccinos. All these small amounts add up over time. Now that you have been spending less during lockdown, why not keep up those good habits?

We are now used to only using our cars to get to the local grocery store, so why not try and use your car less in the future? This will mean cutting down on your petrol bills as well as spending less on maintaining your car. There are also insurance products that reduce your premiums the less you drive.

During lockdown you have been spending less and probably learned that you do not need much of the costly stuff that you own. A key strategy to saving money is to live within your means. As your savings and investments grow, your financial situation will improve dramatically.

You most likely used your credit card a whole lot less during lockdown – so keep up this excellent habit. Also, if you do not pay the full balance at each billing cycle, you pay interest on your credit card purchases. Why not use the money you can save on paying interest, to pay off other debts?

During these challenging times, think of those less fortunate than ourselves. Many people are struggling financially right now, so why not donate your time to a charity or cause? You can also give food or clothing to those in need. If you care about others, the payback is immeasurable.

Now is a good time to start tracking your spending. If you don’t have a budget, then you probably don’t have any idea where your money is going. A budget is the best way to take control of your finances. By tracking your spending, you will identify your areas of excess spending and save money.

Avoid impulse buying. Often when you see something you like, you buy it because it doesn’t cost that much. Even worse is the ease of purchasing online nowadays. It all adds up.

This also means learning to say 'no' to your children. You can save money by learning to say 'no' to the random things they see and want. This will help with their attitude toward money when they grow up.

You most likely found the time to clear out some unwanted or unused items in your home. Why not sell them and turn them into cash? Alternatively, donate them to charity or give them to someone in need.