This is how you stay informed of your finances due to another possible lockdown

Personal Finance Family Finance

If you’re venting frustrations, you’re not alone. But there are other ways to get out of the pandemic

Publication date:

Jan 14, 2022 • Jan 14, 2022 • Read 5 minutes • Join the conversation The fatigue associated with coping with this ongoing crisis can lead to less-than-desired spending popping up. Photo by Getty Images/iStockphoto

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Staying on top of our finances through another possible shutdown is probably the last thing the vast majority of us want to think about, but welcome to 2022, or should I say 2020 too.

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While we’d like to think we’re at the start of a fresh new year full of possibilities, it looks like we’re not quite there yet thanks to Omicron. So if your spending has returned to pre-pandemic levels, you may not be equipped to handle another lockdown.

At the start of the pandemic, you might have been able to save more money by spending less on transportation, dining out, going out or traveling. The reopening of the economy and access to goods and services that were previously unavailable could mean that your savings have declined.

But countless Canadians may have already used their existing savings to cover past income shortfalls caused by layoffs or the time off needed to care for sick relatives or even themselves. Most creditors no longer offer deferred payments, many hardship programs have ended and government support is now more limited. A new lockdown could stretch your finances to breaking point.

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There are also those who have decided to return to school or change careers in favor of a job that has not been negatively impacted by COVID-19. Others may have sold their homes and moved closer to family or simply had a desire for change. Whatever the motivation, those who have chosen a major life transition may still be dealing with the related outcomes of those decisions and not ready to go back into lockdown mode.

Some measures, such as assignments to work from home or homeschool, have put even more pressure on families. Many parents are at serious risk of burnout if they try to be a teacher, parent and employee. If they still manage to earn a living through all the commotion, they may end up spending more on takeout or ordering due to a lack of energy or inclination to cook.

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Even if you’re one of the lucky few who hasn’t had to deal with layoffs or lost wages, the fatigue that comes with dealing with this ongoing crisis can cause less-than-desired spending to pop up. While this “retail therapy” may not have an immediate impact on your overall health, the long-term effects on your finances can have serious consequences for your future well-being.

Then consider this your head up. It was for me when I realized that after having to isolate and wait longer than usual for the COVID-19 test results, I was tempted to spend money to make up for it. Postponed events during the holiday season had a negative impact on my emotional health. Once I was free to get out of the house again, I was tempted to go a little wild and spend money to experience all those things that I had been missing.

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Frustration spending is an understandable side effect of general pandemic fatigue, but don’t feel bad if you’ve fallen victim to it. Doing something that we have control over, such as spending money, when we feel so much out of our control, can bring great, if often temporary, feelings of satisfaction.

Pets can be an excellent source of emotional support, but it’s important to plan all their related expenses into your budget before you face a serious drain on your monthly cash flow. Photo by Getty Images/iStockphoto

One source of frustration in spending has been on pet ownership. From kittens and puppies to the more exotic, there has been a marked increase in the number of people who have welcomed a pet into their home over the past two years. Pets can be an excellent source of emotional support, but it’s important to plan all their related expenses into your budget before you face a serious drain on your monthly cash flow.

Aside from the cost of acquiring the pet, you will need to house and feed it, take care of its medical expenses, and take care of its longer-term needs. A more affordable solution may be to look at raising a pet instead. This allows you to enjoy all the benefits of having a pet without any financial obligations as these are usually covered by the animal agency. At the very least, do your research before making the long-term financial commitment to adopt a pet.

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Another area of frustration spending is evidenced by the significant increase in home renovations. Spending time at home has led many homeowners to speed up upgrades, repairs and renovations. But taking on a large and expensive project requires a serious commitment of time and resources. Before my husband and I upgraded our kitchen, we spent over a year researching, designing and planning what we wanted to achieve. Then we had to decide what we could afford to do.

As is often the case, our kitchen reno cost more than we anticipated, but along with extensive research came the planning needed to stay out of debt we couldn’t afford to pay back. Part of our preparation also included how we would cook for eight weeks while doing much of the work ourselves. As it turned out, cooking was the easier part. We also had to pull straws to see who would wash the dishes in the bathtub. Ultimately, all the time we spent researching and planning helped us improve the value of our home beyond the cost of the renovations.

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Budget-friendly tips to help you pay for the rising cost of living

How do you avoid a hangover in debt after the holidays?

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Till guilt do us part? How do you avoid arguing about money when combining finances?

Whether it’s a pet or a home improvement project, save yourself a ton of financial and emotional stress by pausing to research and understand the significant investment of time and resources required for major expenses.

Despite the appeal of temporary relief from COVID-19 fatigue by increasing your spending, now may not be the best time to do it. Instead, consider other ways to get out of the winter or pandemic doldrums.

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A cost-effective option is to get outside to enjoy some fresh air and exercise. Nothing clears the mental cobwebs like exercise, and the endorphins from a good workout will help reduce feelings of fatigue. If you are determined to make major financial commitments in 2022, work them out carefully. Find out what’s involved and make sure your plans are truly affordable. This year is off to a bad start for many Canadians. Don’t make things worse with bills you can’t pay back.

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Sandra Fry is a Winnipeg-based credit counselor at Credit Counseling Society, a nonprofit organization that has helped Canadians manage debt for nearly 25 years.

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This post This is how you stay informed of your finances due to another possible lockdown

was original published at “https://financialpost.com/personal-finance/family-finance/how-to-stay-on-top-of-your-finances-through-another-possible-lockdown”