The pandemic has shifted spending and saving priorities for many individuals, and has provided a chance to put aside a larger amount of cash into savings. This is widely attributed to the nation-wide lockdowns with people not being able to go out to shop and spend.
A key metric is the amount of unallocated discretionary spending. Think of the overseas trips that didn’t happen, the holidays that got cancelled due to state border closures, and LGA lockdowns. Think of the restaurant outings that didn’t occur and, on-line shopping aside, the retail therapy that did not take place. The result is a massive amount of money sitting in the bank accounts of many people (not all we recognise, but many!).
In what is sometimes referred to as the “new reset”, many people have changed their savings habits forever. In short, for many people, the COVID period has been transformational.
In a recent survey of 2,000 Australians the results displayed how the pandemic has influenced a restructure into peoples’ savings goals, with over half of those surveyed stating that they are prioritising hitting their savings goal or saving for a holiday instead of the continuous shopping cycle. Despite the effect of several lockdowns, most respondents found that the pandemic meant they were in a more positive financial position than before.
There has been a definitive switch from money being used for fulfillment purposes to being viewed as a long-term approach to stability.
With the desire for long-term security becoming increasingly more popular across the country, it is important to ensure you continue to be flexible with your money and not lose sight of your future financial objectives.
At Locumsgroup we can help you manage your finance position – get in contact today.
