Fashion is out, spending less is in! Recent sales for clothing and accessory brands have dropped by a whopping 50% and credit card spending is down 60% compared to the same period last year. Despite some toilet paper hoarding and panic buying, Canadians have actually been spending way less in the past few weeks.
Everything has changed as COVID-19 continues to impact our daily lives including our jobs and income. These rapid changes have not only made us appreciate the importance of our financial health over materialism, they also reveal how much less we spend when we don’t buy things we don’t need.
We know changes aren’t easy, especially at the beginning. You might still remember some of your financial new year’s resolutions that didn’t work out, but no need to feel bad – studies have shown that humans naturally resist change, even when we know the changes will lead to beneficial results. The current circumstances, although difficult, can help push you to learn about your spending and improve your financial habits quickly.
The key habit of financial health is to control your spending. Simply put, the less your spend, the more you have to put towards paying off debt and saving.
We need good financial health now more than ever. It’s time to turn spending less into a long term habit, and continue focusing on paying down debt, and building savings. No pair of trendy shoes will give us the gratification of getting out of debt and being in control of our finances. So if you are one of the many that has dramatically cut your spending, keep up the good work and keep it going. Turn this negative into a big positive to jump start your financial health, and MoneyUp!
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–The Mogo Team