If there is one thing that we have all learned over the past two years of a global pandemic it is that even our savings can be quickly drained if the economy is suddenly brought to a halt. In the beginning there was a great deal of uncertainty with businesses being shuttered and workers out of jobs, sometimes for months on end. Sometimes their places of employment were shuttered for good and not just during shutdowns, so post-pandemic budgeting has taken on a new focus. Creating a budget these days is nothing like it was in the years before Covid, so now we are faced with creating a new “normal” when preparing our 2022 budget.
Little Room for a Miscellaneous Column
In the past, everyone had a “Miscellaneous” entry for money to be used for all those unforeseen issues that could arise from month to month. That bit of money stashed in savings every month was the first thing to be drained when we were laid off or left unemployed. Now everyone is rethinking the concept of miscellaneous because, quite frankly, there is no disposable cash to allocate for the “what ifs.” However, many still keep an emergency fund because that is essential.
The Needs Are More Important Than Ever!
We always knew that needs took precedence over the wants but now that entry is more important than ever. For example, if your family SUV suddenly has major issues that will cost thousands of pounds to repair, a new vehicle isn’t a want but rather a cost-effective need. Even so, you can find a used Range Rover Evoque Leeds dealer such as Car Synergy, and often with little to nothing down. You need a new vehicle, there’s no doubt about it, so with low-cost financing it is made possible in the post-pandemic economy.
A New Appreciation for the 3 Rs of Conservation
If the repairs on that old vehicle had been affordable, you would have opted for repair rather than replace. However, a vehicle isn’t something you can do without easily, especially if it’s your only transport to and from work. This is one instance where the “reduce, reuse and recycle” formula couldn’t work. Yes, you can sell the old vehicle for parts that is akin to recycling, but overall, you needed a new vehicle. For all else, if it is possible to repurpose something you no longer use, then by all means reuse it! Reducing waste helps save money on unnecessary purchases and a fuel-efficient car offers just that. You won’t be wasting fuel with costs continually on the rise.
So then, what is your new normal? Are you eliminating the “Entertainment” and “Miscellaneous” entries on your 2022 monthly budget? Are you finding no cost or low-cost entertainment for family outings? Yes, the economy is on the rebound but with one global crisis about to end (Covid), another geopolitical crisis has evolved with Russia and the Ukraine. Just remember that there is one constant in all this. Save wherever you can because we’ve learned that tomorrow is never certain.
Stay updated with all the insights.
Navigate news, 1 email day.
Subscribe to Qrius
