Covid-19 or the Pandemic has had a big impact on our personal finances. For some of us, we’ve been able to save money at an unprecedented rate. We’ve been sheltering and working from home and spending very little money. The Financial Post recently reported that many Canadians have saved over “28.2 per cent in the second quarter of this year” resulting in a lot of savings! This is a significant shift from the pre-pandemic spending culture. On the other hand, Global News indicate that 2 in 5 Canadians say the pandemic has impacted their finances negatively. Regardless of where you find yourself, it’s time to make a post pandemic plan for your life and your money.
Create new and long lasting financial habits
According to the Bank of Canada, many Canadians adjusted their spending habits during the height of the pandemic. Canadians spent more money on necessities and less on travel, entertainment and haircuts stopped. Consumer confidence hit an all time low. During the pandemic most of us became much more aware of our financial priorities. I realize there was a dramatic shift in my spending. I chose to find joy in simple luxuries such as enjoying my favorite ice cream, growing vegetables and teaching my teenager about managing money. New financial habits take ~21 days to get going. Start small and change one or two things at a time. You may want some help and as such there are some apps that can help you to get started.
Redefine your values and set new goals
Many of us are starting to look forward, feel more optimistic and are wondering what our post pandemic lives will look like in 2021. Will we return to our pre-pandemic lives or will we forge ahead with new goals, stronger values and more conviction about our future? It’s hard to say and it’s a very individual thing. However, according to McKinsey, a global consulting firm, there is still so much uncertainty ahead and levels of optimism vary across the world. The Canadian government plans to spend close to $100 billion to boost the economy but what does this mean for you and I? It simply means we are going to have to take charge of our lives and money and create a future for ourselves that aligns to our values and goals.
Set new goals that are attainable, realistic and time bound
Finding joy in simpler things in life is definitely a recipe for happiness. Take a moment to reflect upon where you’ve been and where you want to go. Most of us have changed, hopefully for the better, because of the pandemic. Setting new goals or recalibrating your existing goals is a must. Some of your goals may be outdated and need a refresh because they do not reflect the person you’ve grown into. You may also have had to put your goals temporarily on hold but according to the Seattle Times you can revisit your goals anytime. Set goals that are attainable, realistic and time bound. Goals that are too lofty or value may be difficult to attain. Dream big but start small. There are some really neat goal setting apps. Try one today.
Do better with your personal finances
Most of us have been impacted one way or another by the Pandemic. Regardless of your financial situation, revisit or create a new budget that reflects your current financial situation and goals. Digital Trends recommend several really good money saving apps that can help you to reach you accelerate your savings. And if you find yourself with a financial shortfall, find ways to cut back and embrace some easy money saving tips from CNBC.
As we move forward with our lives, taking a goal centered approach to your life will increase your happiness. You’ll achieve greater success, boost your emotional well-being and to focus on what really matters. It’s that easy. Really.