How to handle your post-lockdown finances

It’s undeniable that pandemic-induced social restrictions and lockdowns have changed the way Australians handle their finances. Most people have had to reconsider how they spend their money and set their savings goals, and many have experienced financial instability and hardship.

 So, as we approach the light at the end of the lockdown tunnel (touch wood), it might be time to assess some of the savings and spending habits we’ve picked up over the last 18 months and what changes we may soon face.

Here are a few things to consider:

Good lockdown habits to keep

Adding cash to savings goals

A recent industry report found many Aussies are more confident in their financial security than before the pandemic, with a 10% jump in the number of households reporting they were saving money. However, this same report also found a considerable proportion (21%) had less than $1,000 in savings.

Exercising at home and outdoors

With many gyms and classes having to close their doors or go virtual, Australia’s movers and shakers have had to get comfortable exercising elsewhere. While it’s great to support local trainers and initiatives, it could benefit your bank balance to continue incorporating a few free fitness sessions into your routine.

Maintaining a side hustle

If you’ve recently found the time to turn a hobby into a side-gig for a little extra cash, see if you can keep that ball rolling in post-lockdown life. 

Cooking more often

Whether you’re getting online grocery deliveries or have fallen in love with meal kits, cooking at home can help you save a buck. So, even as you start celebrating your favourite local eateries reopening with dining-in feasts, be sure to keep your Nigella kitchen skills sharp for more budget-friendly meal days.

What to do about costs that may increase post-lockdown

Transport costs

Whether you’ve scrapped the commute or have become used to walking around your limited lockdown area, it’s likely that you’ve seen a reduction in transport costs of late. But if you are required to head back to a physical workplace in the months ahead or are planning future road trips, you’ll likely see these costs shoot back up. If feasible, it could be worth incorporating more affordable transport options like cycling and public transport for future travels (when restrictions allow).

Holiday splurges

While international or even interstate travel still feels a way off, it may well make it to the table in the months ahead for fully vaccinated explorers. Recent ABS data shows a third of Australians plan to spend money on travel in the next 12 months, with this being the goal the largest proportion of people are dedicating their savings towards. If you’re one of these potential holidayers, it pays to start saving early for future adventures. This way you can rely on the cash you have instead of acquiring debt while you travel.

Social outings

Let’s be honest, you deserve a splurge on this one! If you’ve been separated from loved ones recently, you’ll want to celebrate when you reunite. So, plan for an uptick in your ‘fun’ budget, and enjoy it. When you’re not spending cash, make sure you’ve got it stashed somewhere it can be steadily growing, take a look at our savings account options here. 

This article was originally published by Mozo at https://mozo.com.au/savings-accounts/articles/how-to-handle-your-post-lockdown-finances This information is general in nature. does not take into account your personal situation and does not constitute financial advice. Please refer to any relevant terms and conditions associated with any financial product offering.