Recently our colleague at Main Street Financial Solutions, Kerrie Debbs posted subtly positive ways to look at the current pandemic when it comes to personal finances. I repeat some here with additional thoughts as well.
One theme is that various clients and others with whom we have spoken have reported far lower overall (or at least discretionary) spending in the past few months compared to “normal” times. These may include the following:
- Going out to dinner & drinks
- Travel…whether weekend or vacations
- Hair color & hair cuts
- Nail salons
- Massage & spa appointments/memberships
- Traditional gym memberships
- Kids’ camps & activities
- Specialty order coffee drinks
While these reduced expenditures may not have been voluntary or even enjoyed, it has put in perspective more focus on where exactly people are spending their discretionary expenses. It has helped specifically to understand what items seem to have been priority expenses. At the same time, perhaps the experience of having “gone without” certain lower priority services and items for several months could make it easier to streamline how money is spent — and saved — going forward.
No one wanted this pandemic and nearly everyone wants it OVER. But as long as we are stuck with the coronavirus for a little while longer, there are ways to use this time to come out on the other side smarter and more aware of spending…which could lead to greater savings as a buffer and survival tool for future challenging times which we don’t see coming. As the old adage goes, hope for the best but plan for the worst. Please contact us if we can help you with a financial plan.
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