When the going gets tough, the tough get cooking from scratch…and paying off debt…and using hand sanitizer. We might have taken some creative liberties with that idiom, but a lot of other things have changed in the past year, so why not?
The pandemic didn’t just force us into our homes, it also changed many of our daily habits in ways that had a significant impact on our finances. There were few, if any, dinnertime delivery calls. During grocery shortages, some vegetable-averse children learned that hot dogs don’t grow in the wild. Many eager beginners realized that bread takes a lot of flour and a sad amount of time to make. Netflix became a lot of people’s best friend. We missed each other.
In the uncomfortable stillness of our homes, out of the rush of “normal,” we realized that we all have the ability to make our lives what we want, and a large part of doing so involves redefining work, moving toward financial freedom, and placing a greater value on community, family, mental well-being, and physical health.
Now that many restrictions have been lifted and there’s growing hope in the atmosphere, it’s easy to forget the lessons we learned, to run back into the rush, and to give up on the goals we made. But that’s the last thing any of us should do.
Don’t lose the wise spending habits you acquired during the pandemic.
Here’s a refresher course on the basic financial habits that were true before the world shut down and are even more pertinent now:
Make your meals. Grow it or mix it, bake it, and burn it. Buy the “from scratch” ingredients. Have your family address you as “Chef.” Make meals a community event; have friends over for potluck-style dinners. Eating out can be a special exception and all the more enjoyable for its novelty.
Increase your savings. There are fewer temptations to go on errant spending sprees when you don’t leave the house for a year! Take stock of how it felt to have the extra money at the end of the month. Chances are you didn’t miss that morning run to the bagel shop or the weekly trip to the mall. So don’t return to the bad habits you broke during the pandemic. Parents can also take advantage of the 2021 Child Care Tax Credit, beginning July 15. Eligible recipients will receive $300 per month for children under age 6 and $250 per month for children ages 6–17. Two great savings options for this money: Fund a 529 college savings plan or create a UTMA account for your children’s large future expenses like home down payments, weddings, or cars.
Pay down/refinance debt. Take advantage of bottomed-out interest rates before they jump back up. You won’t just save on monthly payments, you’ll also laugh all the way to the bank as you calculate the interest savings over the life of the loan.
Redefine vacations. When travel was restricted, we still found ways to explore and relax. Shorter stays, day trips, and staycations are great ways to save money while preserving the fun and rest you need.
Skip the commute. Unless it’s a poor option for other reasons, working from home is a great way to save on gas, car insurance, auto maintenance, time, speeding tickets, and pants, all while reducing your stress levels.
Use a cooling-off period before a big purchase. The price of some commodities skyrocketed due to shortages/increased demand during the pandemic. If you can, wait for costs to drop again before investing your hard-earned cash. Institute a delay period for large purchases. It’s easy to consider a new in-ground pool a desperate and immediate need on a 95°F afternoon. Three days later, you may admit that your community pool or a homemade slip ’n slide will do just fine.
Budget. Boss your money around, including the expenses that will likely change as you resume normal activities (e.g., driving your car more, using less electricity at home while you’re gone, and a few more social outings).
If every cloud has a silver lining, then perhaps a subtle but significant benefit of the pandemic is that: While things felt out of control all around us, drawing back clarified our values and how even small things can make a big, long-term difference.
We’re in the business of providing clarity and helping people like you make changes that lead to incredible impacts on your future. Because the way you spend your money is really the way you spend your life. So make it count.