The Changing Times of Saving and Spending

A key concern for many of us these days is how to manage our finances during this global pandemic.  Saving and spending patterns are changing constantly. As we switch from fear to a phase of gradual restart and hope for recovery. The questions on personal finances after Covid-19 are stark. Therefore, this has been a tough time for some families while it was easier to sail through for the fortunate ones.

Which is the driving factor here?

• Risk has been the driving factor affecting income. Millions of livelihoods have been wiped out by the pandemic. Millions of people who are left with no employment have faced the primary impact of the lock down.
• Many employers who funded the first month of pay thereafter turned their backs to extend the benevolence. With the economic activities coming to a jerking halt, there is no work and no pay; with families surviving upon the amount of savings, they had.
• Many significant monthly income earners, have been sitting without a pay or have settled with a significant pay cut with the hope to hold on to their jobs.

In an environment like this, one must return to basics and make sure that we have a sound financial plan in terms of Saving and Spending.

Spending

Spending has changed dramatically as well. Changing risks to income has unintentionally led to individuals that are cutting back on many expenses. Incurring no expense on dinning out, entertainment, travelling, shopping, is the new normal.

For households surviving on businesses, their spending habits have been left to weep. The ability of these businesses to employ people, paying their salaries, and expanding activity is retrenched, creating a negative spiral of loss.

Saving 

Saving and investing have led to the burial of splendour. Individuals are barely managing to maintain a surplus in the banks. Though, people with enough wealth are discovering newer strategies to invest. But, most of us do not have the accurate knowledge of doing so. Hence, it becomes important to restrict our spending only on essentials in order to avoid further strain on individual finance.

Conclusion

The times have been extremely uncertain and the panic about finance amongst all has been highly conspicuous. Thus, the changing dimensions or area of saving and spending have been a direct outcome of the crisis. The front line to survive through this has been very simple, this too shall pass.

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