Four tips to avoid the “spending after lockdown” dilemma

With the Government announcement that lockdown restrictions are to be further eased from today (Monday 17 May) in England (Scotland, Wales and Northern Ireland have their own rules), we are looking forward to gaining a bit more freedom.

This inevitably means meeting with extended family and friends at outdoor and indoor attractions, restaurants and bars, with even theatres and cinemas opening!

Spending after lockdown

New figures from a report carried out in collaboration between Scottish Friendly and CEBR predict that Brits are expected to spend around £50 billion collectively in post lockdown spending, which is the equivalent of 26% of a household’s lockdown savings.

If you’ve been watching the pennies over lockdown, how will you continue to do so in light of the restrictions easing?

To keep your account in the black, read below for our top four finance tips for you to bear in mind when spending after lockdown.

Budget, budget, budget!

Sticking to a budget is a sure fire way of keeping your finances in check and your bank balance healthy.

Non essential businesses will be desperate for your custom and whilst we should be going out and supporting these businesses, take a minute and ask yourself if you really need that item and whether you can really afford it!

Don’t just look at the present situation either – look towards the future over the next few months. Will your outgoings be increasing because you will be expected to return to the office? Are your kids starting after school activity clubs? Are you booking in weekend activities? Will you be using the car more? All these things add up and you need to factor these in when spending after lockdown.

Outgoings starting up again

Due to the Covid crisis, a lot of lenders gave people the option of taking payment breaks. Some of these have already come to an end but a lot are coming to an end soon, which will mean that you need to factor these outgoings into your financial circumstances again.

Mortgage holidays were offered with the caveat that interest rates may go up at the end of the break. Ensure that you know what they are and ensure that your direct debit (if you pay that way) has not been cancelled. Do not get caught out!

Ignore FOMO

Everyone gets this! FOMO (or the fear of missing out) is a strong feeling. Especially when we’ve been cooped up over Winter with just the people we live with! Social media does not help this either with people inevitably posting their meetups and you wishing that you were there.

Keep your budget in mind when organising your social calendar and working out your spending after lockdown.

Spread the socialising out over the month – don’t do everything in one weekend. That way, you can stretch your socialising budget over that time and not feel bad for having to cancel things because of your budget, or even worse, taking credit out to pay for it!

Keep saving!

46% of Brits increased their cash savings during the past year as life as we knew it came to a halt.

Unfortunately that means that 54% of Brits did not find themselves in that position, however saving little and often can still be achieved.

Savings apps (such as Monzo, Moneybox and Plum) can be utilised, which do the job of siphoning off savings from your income themselves, or you could include a savings figure in your budget and set up a standing order to your savings account.

At the end of the month you could be left with a nice savings amount that you can either move to a high interest savings account, invest it or spend it on those fun things you have planned!