How COVID-19 Changed Our Spending Habits (And What We Can Learn)

How COVID-19 Changed Our Spending Habits (And What We Can Learn)

How COVID-19 Changed Our Spending Habits (And What We Can Learn)

Today we have a really short episode for you. We’re going to explore a simple budgeting opportunity that is now available to Canadians

But before we jump into that, I just wanted to share some exciting news – we have now almost hit a quarter of a million podcast downloads – which is just mind blowing! This is an incredible achievement and I wanted to personally thank every single listener for your support.

The success of this podcast has absolutely exceeded my expectations and I feel quite flattered.

This is also a perfect time to remind everyone that we do have a Patreon page where you can make small donations to help support the show – the link will be in the podcast notes.

How Covid-19 Has Changed Our Spending Habits

Without a doubt, the COVID-19 pandemic has changed the world that we live in in countless ways. Many of these trends like working from home or using videoconferencing programs are likely here to stay in some form or another.

With falling case numbers and provincial governments reducing restrictions, we are gradually transitioning into a lifestyle that is sort-of pre-pandemic.

With this big spending transition, it’s time to dust off our trusty budgets and update them to stay relevant.

When Covid locked us down it essentially hit a reset button on our spending habits. These changes lasted for a very long-time which allowed our old habits to fade and to be replaced by new ones.

What we saw was that many discretionary expenses like going out to restaurants were wiped off of budgets and replaced with food delivery and online spending.

Overall, Statistics Canada reported that Canadian spent less during the pandemic and savings rates have gone up. Interestingly, Equifax has also reported that credit card balances have dropped by nearly 10% over the past year.

What We Can Learn From The Change

Now, with the gradual reopening of economies, there is fundamental shift of our spending habits and knowing about this in advance gives us an opportunity to shape how we much we spend in the future.

Instead of passively being driven by our future spending habits we can shape how much we want to spend in the future. Since we are beginning new habits, these new spending trajectories will shape our future cashflow and managing it now will be easier than trying to change it in afterwards.

So what kind of discretionary expenses are we mainly talking about here? The big ones will be restaurants, bars, and various  types of entertainment.

These are basically expenses that were dropped due to Covid and are now being implemented.

So this give us an incredible opportunity to refresh our budget to decide how much we want to spend on these categories.

Don’t Forget About Travel!

Now, is also a perfect time to start planning that future vacation too – with international travel likely complicated until the end of the year or even early next year, we can start putting money aside to pay for that awesome trip or adventure that you want to embark on. As an extra bonus, it will give you something to be really excited about.

Putting aside $300 a month for the next months would fund a trip for $2,400.

So that’s it for today’s episode, but please let me know how your spending is changing due to the reopening of economies. I would love to hear all about it.

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