June 11 2020
Written by Ben Crow, COO at WLTH Finance Tracker
Throughout the lockdown period, many people in Australia have taken the time to sit down and work out a plan to try and reduce the financial stress caused by Covid-19. The initial shock after going into lockdown created the urgency to make these changes and cut back on spending due to the unknown ahead. However, as lockdown continued, these changes have become the new normal with many Australians, now having a better understanding of their personal position than they did before.
As we start to make the slow transition back into life post Covid-19, the way people think about money has changed, including how they are managing it. For those that have always stuck to a budget, things may stay the same, however over this period, they might have reduced their budget to save more, as well as looking at new ways to track and manage everything. With more time on their hands working from home it has given everyone the opportunity to transform how they look after their finances and simplify how to track and manage everything, with financial technology products available.
Then there are those that were careful with their money, but never let their budget get in the way of doing something or buying what they wanted. After being more careful with their money and sticking to a budget over this period, it has created a new habit. After a couple of months they might even be able to see a little nest egg that has been put away into savings. Reducing spending and sticking to a budget have now shown them the perks associated with being smart with their money and could have potentially opened their eyes to opportunities like buying their first home that had previously seemed unattainable.
As we start to move out of the Covid-19 restrictions, there is still a great deal of uncertainty ahead. Taking control of your financial position is as important now, as ever before. There are a lot of positives to come out of this period of time, especially with our relationship with money. After reducing costs at the start of Covid-19, whether it was subscriptions, shopping, or general spending, our expenses have been streamlined. This creates a great opportunity as we start to get back into life after lockdown. With spending streamlined, it presents the core costs we have and the basic costs of living over this period.
Covid-19 has also made many people understand the importance of taking control of their personal situation to take greater control of their financial future. As we start the transition out of restrictions, it starts the process of adding back in expenses that have been removed during isolation. This presents an opportunity to think more objectively about certain expenses and whether you need to allocate as much money to certain activities moving forward as you did before. Start thinking more about your goals and set yourself targets, as this will give you something to work towards, making it easier to stick to your budgets by focusing on what you are saving for and not what you are missing out on.
The WLTH Finance Tracker will help you to track and manage you finances.
