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Which Lockdown Spending Habits You Should Keep and Ditch in 2021

Posted on: January 13, 2021

Which Lockdown Spending Habits You Should Keep and Ditch in 2021
As we enter the new year, many people are excited to leave 2020 behind and start fresh, but as we look to the future, there are a few things we can learn from the past. After a year spent in-and-out of lockdown we learned a lot about our spending habits. If there’s one positive takeaway, it’s the opportunity to reassess and improve our personal finances. So here are our top two lockdown money habits to keep and ditch in 2021:
  1. Focus on Saving
One of the greatest financial lessons learned in 2020 was the importance of saving. For many people, the pandemic brought financial instability. Between increased job losses, furloughs and businesses with impacted revenues, the pandemic has proven the true value of saving. One of the best ways to boost your nest-egg is by automating your savings. This ensures you meet your monthly savings goal and helps you automatically reduce your spending. Focusing on storing your wealth rather than spending it is a lockdown money habit we definitely want to see in 2021.
  1. Cut Down on Daily Costs
One of the silver linings of living in lockdown is the cut on daily costs. Although it was a tough lifestyle change, for many people it was a wake-up call as to how much money they used to spend in their everyday life. With work lunches prepared at home and Starbucks purchases forgone, it’s clear that that at the end of the month you can save big by habitually cutting down on what seem like small daily costs.
  1. Reconsider Your Monthly Subscriptions
With nowhere to go in lockdown, it only makes sense to search for alternatives to stay entertained. Television and movie viewership has skyrocketed since the first lockdown. Crave, HBO’s streaming service, reported a 60% increase on their viewership between March and May of 2020 alone. As consumers turn to streaming, companies are adapting and releasing more services. While this is a fun and cost-efficient way to stay entertained in lockdown, the new year as a good time to re-assess just how many monthly subscriptions you’ve acquired this past year and how many you really need.
  1. Impulse Online Purchases
Similarly, one of the big money-sucks of the pandemic has been online shopping. Statistics Canada reports that during the first lockdown between February and May of 2020, online shopping increased over 99%, reaching a record of $3.9 billion in e-commerce sales from May alone. Although in-person retail purchasing hit new lows as stores closed, it’s important to be cautious of the convenient and impulsive nature of online shopping. While retail therapy can bring comfort in difficult times, overspending will only result in more distress when it’s time to pay off your monthly bills!
As we reflect on the past year, there are many important financial lessons to take with us. Celebrate the new year and bring some of those positive personal spending habits into 2021!

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