There is basically no element of life that the COVID-19 pandemic has not affected. People all over the world were forced to make changes, tough decisions, and refocus their lives plans all because of the unprecedented times that we have all been living through for the past year and a half. Having said that, these changes have not been all bad, or made in vain. For many people this was a great, and much needed opportunity to really think about what they want out of life, and what getting it will look like.
Money is always a great concern for people from all walks of life. And prior to the pandemic, one of the greatest attitudes towards money, was ‘YOLO’ (you only live once). There is an entire generation of people whose relationship with money is based around the notion that tomorrow is never promised and if you want something today to make your life incredible, do it. Now however many of those same people are instead saying they want to save, financial freedom is important, and seeing what it will take to retire early. Here are examples of how people’s relationships with their personal finances have shifted since COVID.
Because people were forced to live with a lot less physically, mentally, and emotionally, many people have come to realize that they do not need as much as they once thought they did to have a happy and full life. Not only have people discovered this, but they have grown to prefer it over their former life of clutter and chaos. Being a minimalist is a recent trend that is gaining speed and applying that towards money is no exception. Instead of major vacations or expensive cars, many people have decided to focus on paying off debt and saving for the future with funds previously dedicated towards the extras.
With student debt being one of the most common kinds of debt a person can have, as well as one of the most significant, flocks of people have looked to refinance so that they can eliminate this bill from their monthly budget as quickly as possible. A student loan refinance can help you lower your monthly expenses. By refinancing your existing student loan into a new loan with a private lender, you can expect a more favorable interest rate, and an overall reduction of the total amount to be repaid over time.
Saving > Spending
The thrill of saving money has replaced the thrill of spending it as a result of the pandemic. For many months, with social opportunities at an all-time low, people were much more in tune with how much money they had actually been spending on going out. Money that is now saved and built up. If you are disciplined enough to have a strong savings plan, then you know how addicting it can be to see your accounts grow where you previously watched them dwindle or remain stagnant.
Younger generations specifically are now reveling in the thought of saving for the future and building their financial resilience. Since money is no longer the taboo subject it historically has been, 18–24-year old’s have a leg up on their predecessors on the importance of savvy saving, investments, and when to start planning for retirement. The pandemic has given many an opportunity to build up emergency funds that they did not have previously as well as better track their spending and create budgets that are more in line with their actual financial situation as opposed to a fairytale ideal, or one that was geared towards keeping up with the Jones’s.