We are emerging from the pandemic lockdown mentality. Though variants and vaccine stragglers abound, there is the socializing side that so many are struggling to get used to again. Then, there is the piece that is gaining some traction but not enough attention.
Emerging financially. Our spending habits changed with covid. First there were none – with eating out dropping majorly and credit card use plummeting. Then, we began to adjust to home and with it the cost of monthly subscriptions to keep us entertained, in shape or stretching personal growth. The next step of the financial pandemic was home improvements over looked or not necessary until we spent so much time at home. Finally, the housing plunge which is still going on. The demand for a home in the suburbs or country were powerful.
The need for more sweats, less makeup and creative recipes changed us and our spending habits. Now, we are changing again. I have events to go to! I need clothes! I get to go somewhere without a mask. There is a global demand for lipstick. Dinner out is an option. A respite from takeout is available. Those recipes may collect dust.
How do we manage this radical change to our spending habits without damaging the savings we have built? A bit of planning always helps. And before that creating your own money philosophy so you do not get washed away in the fun of shopping, traveling and upgrading your home without thought.
How do you do it?
1 - Create your values list.
What three things are important to you? Health, Family, Adventure, Spirituality
Do it with your partner if you have one. But only after you have each done it yourself.
2 - Remind Yourself!
Once you know your priorities it is important to remind yourself. Maybe a sticky note on the back of your credit card. Or on your computer so before you hit that one click purchase option you can realize how important it really is to you. Or is it an impulse purchase.
3 - Look at Your Income!
Then, take the practical piece and look at your income. Do you know where it is going? For example, households on average have 22 subscription services. Your priorities are changing as we reemerge. So maybe all of those are not critical to your well-being. More than a few may not match your values.
When we spend our money to match our values, we feel better – more peaceful about our spending. Knowing what is really not as important, makes managing money so much easier.
So with those major values in mind, consider what you have for disposal money after the basics of living – food as in groceries, not eating out, housing monthly costs, not including decorating, and transportation and medical and insurances.
4 - Decide what spending supports your values.
For example recreation may be that class you take or golf course you belong to or the travel to kayak on a lake. Keep those in your spending plan.
Decide if the you would feel better if you had spending set aside for the each of your values.
I have clients who feel guilty about spending money on vacation. Yet, time with their spouse is a priority. Setting up an account that they save in and then use it exclusively on vacation, prevents them from stopping themselves. There is money set aside for something they enjoy and appreciate. They find it easier to follow through.
After all, what you spend money on is as important as what you do not spend money on.
Enjoy your money, You deserve it!
Just plan a bit differently and come up with your philosophy first.