Two Positive Changes Brought by the Pandemic

Financial tips

Two Positive Changes Brought by the Pandemic

Posted by Infinite Wealth Advisors, LLC
12 months ago | December 12, 2021

Ask anyone how the pandemic has changed their life, and you will likely hear a long list of complaints about the negative impacts. Yes, most of us can count a number of ways that the situation has changed our lives in unfortunate or disappointing ways. But as it turns out, many of us can name a few positive changes as well!

In fact, a recent survey by Capital One shows that the pandemic impacted our financial lives in two positive, and very important ways.

More of us are prioritizing savings.

The survey shows that 42 percent of us have responded to pandemic fallout by increasing our savings rates. That’s probably because most of us know someone who confronted an unexpected financial downturn, and was either saved by their savings or suffered from a lack of a rainy day fund. Maybe that person was even you.

It’s always a good idea to stash enough cash to cover at least six months of expenses, just in case of job loss or some other disaster. And of course, more is better, if you can manage it.

We’re monitoring our spending more carefully.

The survey also showed that 40 percent of us are reviewing our spending more regularly than before. That’s good news in a culture that prioritizes a “buy now, pay later” mentality toward material goods.

Setting a budget and focusing on essential spending is always a good idea, both to focus on meeting important goals and to prevent excessive debt. Just remember that retirement savings should always count as an essential item within your budget. In fact, we recommend that you “pay yourself” first, with automatic retirement plan contributions straight from your pre-tax earnings. Then, establish a budget with the rest of your take-home pay.

For more information on strategizing your budget and preparing for a more stable future, give us a call. We can help you adjust your financial plan in the wake of the pandemic or any other major event in your life.

 

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