The pandemic has forced all of us to change our lives in some way, shape or form. It’s affected the way people shop, travel, entertain themselves and spend their money. A NerdWallet survey found that 85% of U.S. adults developed new money habits during the pandemic and most plan to keep them. Here are some Covid-19 money habits worth keeping.
Building your emergency fund
No one expected the world to shut down almost overnight. But that’s the thing about emergencies, they can happen anytime and it’s usually when you least expect it. Therefore, it’s important to be prepared. Having an emergency fund can help you stay afloat when times are hard. Ideally, you want to save between three to six months’ worth of basic living expenses. To achieve your goal, choose a specific amount you want to save from each paycheck then set up automatic transfers with your bank. This will force you to make saving a priority, so you reach your goal faster.
Paying more attention to your finances
Some people were just spending money without a care in the world. But that all changed when people started losing their jobs or had their hours cut. With limited income, they were forced to do things differently. As a result, forty percent of Americans started paying more attention to their money. Seeing where every dollar goes can be very eye opening and not in a good way. The best tool for getting your finances on track is a budget. Rather than track your spending manually, you can make life easier for yourself and use a budgeting app like PocketGuard. All your accounts will be listed in one place so you can keep tabs on everything.
Spending less on “wants”
With many businesses being closed, people were forced to rethink how they spent their money. Eating out, going to the movies, concerts or even the gym wasn’t an option, so they were able to save more. Fifty-eight percent of people plan to continue cutting back on their “wants” when the world reopens. If you’re looking to reduce your expenses, you can cook meals at home, cancel unused subscriptions, do DIY projects and shop with a list. You can also force yourself to wait 24 hours instead of making an impulse purchase. This will give you time to think it over before dishing out the cash.
Managing your bank accounts online
Since the pandemic began, 32% of people have switched to doing their banking activities online. Thirty-three percent have either tried a digital banking service for the first time or increased their usage. Doing your banking online is convenient. You can manage your accounts, transfer money, pay bills and make check deposits all from your phone or computer.