Perhaps it is time to re-think how you manage your finances. If you are fortunate enough to have steady employment, you do not have to spend as much money you did before. And if you do spend, you can change the way you spend and allocate your money. This is an opportunity to decide what is really important to you. Even if you do not end up making drastic cuts to your budget, you could find ways to make more of your resources differently so you were able to reach more of your goals.
The Washington Post published an article on people who were leaving smaller city homes like townhouses for homes in the suburbs with more space. (People desperate for more space fuel a pandemic real estate boom). The city-dwellers saw that the kind of lives they had led in very connected urban communities had changed with the pandemic. And some of them also felt it was difficult to manage working at home in a small space while their children were also attending school at home.
Now, obviously, moving and purchasing a home are not usually money-saving ventures. However, if these people find that they are able to feel more relaxed and comfortable with these changes, then these moves will have been worth it.
On the other side of the spectrum are people who perhaps need to consider making fewer purchases, rather than going for a change of lifestyle with a major purchase like a house. A number of people on social media confess to ordering a lot more items online now they feel their movement and ability to travel have been restricted. Just because you have the spending power doesn’t mean you need to use it all the time. Instead, revisit your budget and spending habits to make use you haven’t started a shopping habit that might jeopardize your financial future.
While you may not know exactly what the future holds, you do have some idea of how you would like to live. This is great time to reevaluate your financial priorities and a Fee-Only financial planner can help.