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One of the few bright spots in a very challenging year has been the monthly emails from my budgeting app showing huge decreases in my spending.
I can’t take much credit for the drops, given all the Covid-19 restrictions and risks that have prevented my family from spending at their usual capacity. But still, it’s nice to see something move in the right direction.
The app says that we have been saving between US $ 2,000 (S $ 2,700) and US $ 3,500 each month since March. And compared to the same period last year, our credit card balances dropped 25 to 30 percent, due to the total interruption of travel, eating out, and my appointments three times a year for the hair color.
According to the Bureau of Economic Analysis, categories such as clothing, recreation and food services saw rapid declines in the second quarter of this year, compared to previous quarters. Some of these pandemic spending habits are here to stay, at least for a time.
I estimate that my new lifestyle can save me around US $ 10,000 a year at no cost to my overall fulfillment. Instead, you can open my bank account up to the things that 2020 has led me to discover more.
PERSONAL CARE AND GROOMING
I’m not giving up on myself, but I don’t need all the expensive wellness stuff that Instagrammers have told me are essential. Do you know what is really essential? Sleep, drink and avoid social networks.
That being said, I paid over $ 100 for a fancy haircut in August. It was my first slice in seven months, and I immediately felt revived.
My gray roots, however, can wait. And they can be handled with a coloring kit in lieu of the salon appointment. Tried the DIY kit once, deemed it a success, and now I’m hooked.
Manicures will be back too, but they will be much rarer.
And as we became more cost-conscious during the pandemic, I learned by trial that the Target-brand facial scrub can be just as effective as the fancy product.
Estimated annual savings: US $ 1,400.
LUXURY FOOD BRANDS
I do a lot more grocery shopping now than before the pandemic, and it has taught me how to get the most for my money while still eating healthy. The key is to go for cheaper store label brands whenever possible. Sales of private label products, according to Nielsen, increased 29 percent from March, ahead of sales of regular brand products, which grew 24 percent. I guess I save more per week by avoiding high end brands.
Estimated annual savings: US $ 1,500.
QUICK FASHION
With nowhere very exciting to go these days, my closet has stayed the same since March. Once the world finally reopens, I will be more inclined to buy a new blazer or a colorful dress.
But “fast fashion” clothing from brands like Zara and H&M will no longer be my preferred choice. I realized that a closet full of clothes is useless. Instead, I plan to invest more in a high-quality capsule wardrobe, one that is heavy on the top. Spending more on individual items today can mean saving more money in the long run.
Estimated annual savings: US $ 250.
WEEK TO GO
In June, restaurants accounted for 1.2 percent of our total credit card statement, compared to nearly 8 percent the year before, when we ate out (or asked for admission) about five nights a week. That’s hundreds of dollars in savings per month that we don’t lose.
Is it easier to order a meal online and have it delivered to your door? Insurance. But after being more or less forced to cook these last few months, I discovered some joys in the ritual.
I love watching my kids watch us cook dinner. They gather around the counter, increase their appetite and ask “What are you doing?” and “Can I help?”
I love when the smells of roasted garlic and spices fill our home, reminiscent of when I was a child.
We are creating great memories and now I can’t imagine going back to the old ways of eating.
Estimated annual savings: US $ 5,000.
TRAINING CLASSES
Old Farnoosh would blindly spend $ 300 a month on fancy fitness classes like cardio boxing and barre, but in the last six months, I’ve paid for all but one outdoor training class due to school closings.
Instead, I practiced better eating, did some workouts at home, and started running more, all of which have led to similar results. However, I miss the kind of barre, which cannot be played at home. So I will probably go back to attend some of them every month in person.
Estimated annual savings: US $ 1,800.
I am sure that once the world returns to a higher level of normalcy, we will return to our old spending habits. For my part, I can’t wait to travel to a place other than the supermarket.
But the recession has certainly taught me some important lessons about what matters to me and what I can handle on my own.
Last month, for example, I replaced my 2011 MacBook with the newer model because working from home all day required it. I have learned not to wait that long to invest in technology, especially to work. I also paid more for high-end cookware this summer, which makes meal prep more enjoyable. Finally, our charitable giving ended in 2020, as the year has made it very clear that with some easy rewards, we have more room to give.
BLOOMBERG
• The writer is a financial journalist, author, and host of the So Money podcast.
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