Prevent The Post-Covid Spree

As life progresses to a new, post-COVID world, we may feel an urge to spend as the emotional highs of returning to normal start to kick in. Since many of us postponed travel plans, large purchases, and celebrating events with friends over the past year or more, the combination of these types of costs, plus the need to “reward” ourselves for getting through it all, can throw our wallets into a tailspin. To prevent the “spree” we might consider these tried and true methods of curbing potential overspending.

• Determine when and how to purchase your own “reward.” Including a splurge here and there doesn’t have to break your budget if the splurge is baked into a larger spending plan.
• Slow down and track spending. Using technology to track spending is always smart, particularly when emotions run high. A quick review of your current spending level can help calm the emotional side of spending with a small dose of reality.
• Analyze each purchase. Consider using some of those habits learned during the pandemic even if things are back to normal. Review each purchase and determine if it is a genuine need or a want. If the latter, does it fit into your overall budget?
• Re-evaluate your online shopping habits. Many of us have set up ways to make online shopping happen automatically and without much thought. Try removing credit cards from your accounts or deleting bookmarks to certain websites. These small actions may help you take a step back and reign in any online revenge-spending urges.

Does your current spending align with your long-term financial goals? Take this short spending assessment to learn more here.