Getaways, nights out, festivals, functions, visiting friends and family members. Most of these things have been delayed, limited, cancelled. We missed out on a lot during the last 18 months.
Now that things are getting back to a sense of normality, and we’ve a little more freedom, there is a big urge to make up for lost period. And our lender balances are being it.
The mix of feeling as though we’ve missed out, and a desire to take care of ourselves after such a hard time period, means we are ‘revenge spending’ – and it might not be the great thing to do.
‘Revenge spending, or revenge buying, is a term used to explain the urge people have to spend money in order to make up for lost time,’ Jonny Sabinsky, head of communications at thinkmoney tells Metro.co.uk.
‘This trend usually takes place after an unprecedented event. We are more likely to “revenge spend” because we feel like we are attempting to recoup some of the time spent in the house.
‘It’s a phenomenon that’s really about to erupt as we exit all restrictions and have the ability to spend the money we’ve been saving since 2020. The pandemic has affected everyone in different ways, and some people may feel that their spending is justified.’
As restrictions lift here in the UK, you might be tempted to treat yourself, refresh your wardrobe or book a holiday to make up for lost time during the pandemic, but Jonny says it’s important to know when to stop.
‘If the last 18 months has taught us anything, it’s that we always need a safety net during hard or unexpected times,’ they say. ‘Don’t fall back into the trap of living paycheck to paycheck.’
How to avoid revenge spending
A recent report found that one in three Brits have an average of £4,500 more in their savings since the pandemic.
The experts at thinkmoney say it’s recommended to try to save around 20% of your monthly income. So here are their top tips to help you get back in to good money habits post-pandemic:
Wait three weeks before going ahead with big purchases
If you are looking to splash the cash on an expensive item or items, write them down in a list and wait three weeks. Then, come back to that list of purchases and cross out the ones that you have realised you don’t need.
That way, you can separate the ‘wants’ from the ‘needs’.
Pay attention to the smaller purchases – to save £27 per month
Sit down and track what you have spent in the first month since restrictions have eased.
Have you bought a coffee every day? Have you treated yourself to lunch out during the week?
Pay attention to the smaller purchases and see what you can save. By cutting out one takeaway coffee and one lunch meal deal a week, you can save up to £27.
Compare 2019 spends to 2021
While a lot has changed in the past year, you might be able to get a better understanding of your finances by comparing your average disposable income from 2019 to today.
Look at what you are spending on money today that you didn’t in 2019 to see if there is anything you can get rid of to save money.
Pay attention your subscriptions – to save £100
Thinkmoney found that 35% of Brits spent an extra £100 on their subscriptions during lockdown to keep them entertained. But with venues reopening, you might not need all of them.
Alternatively, you could look to combine your subscription plan with another person’s living in the same household to save money. For instance, Spotify and Netflix offer this option.
Don’t forget to turn up for Happy Hour
Happy Hour can save you significant sums of money, with some venues selling beer for under £2 during their selected Happy Hour.
Typically set between 5pm and 7pm, opt to head out and eat between those times as you will save more on food.
Opt for accounts with ‘jam jar budgeting’ options
Jam jar budgeting refers to splitting your money each month into ‘jam jars’. So, you have a jar for your bills, a jar for disposable income, etc. so you never spend more than you have.
Not only does this ensure you can save but these types of accounts will also improve your credit score.
Use supermarket loyalty cards – to save £400 per year
This is more of a long-term change, but make sure you sign up for supermarket loyalty cards as you could make savings of £400 across the year, which leaves plenty spare to visit friends and family.
Tips on how to say no to social events
If you are struggling with FOMO but want to save your money, psychological therapist, Kate Chartres, has shared her tips on how to turn down social invites:
1) Be honest
Say if you are not comfortable with being around big groups. If you are more comfortable around small groups, tell them. They will respect your honesty.
2) Let them know you care about them
They are still a big part of your life, and that you will be together again soon.
3) Remind them that having this time to be in your home/alone in nature has been helpful and you are not quite ready to give it up.
4) Tell them it’s not personal
This is just a choice you are making at the minute.
Kate even suggests asking your friends or family to send photos, so that you can see and enjoy them at a later date.
Reemerging back into normal life and events can be both expensive and mentally stressful, so make sure to set boundaries and follow your own pace.
Credit: Original article published here.