PANDEMIC CREATES FRUGALITY AMONG AMERICANS

#coronavirus #COVID19 #FlattenTheCurve #spending #money
Americans are holding on to their money, even as the country gradually reopens, despite the pandemic.
A survey of 2,200 adults shows how COVID-19 has dramatically changed behavior among Americans, potentially for a long time.
So writes Tiffany Kary, in an article for Bloomberg News. It was also published July 5, 2020, in The Atlanta Journal-Constitution.
Americans have become more frugal, after many unexpectedly lost jobs as businesses shut down, the article says. That can be a good thing for individuals, many of whose saving habits have been less than stellar.
In fact, in a later article, the Atlanta newspaper reported that some people’s financial health has actually improved during the pandemic. That likely doesn’t apply to those who’ve been out of work for a time, but for those who have been working from home, they are not going to theaters, they are not going on vacation etc., in large numbers. Yes, entertaining yourself at home can have its rewards.
But if you are a small business owner whose profit comes with gathering, socializing in large groups, you are probably hurting. Even if you are allowed to open, there are only so many people you can have. Over time, that may not be profitable.
So, here are some raw numbers from Morning Consult in Kary’s article:
• 29 percent of Gen Z consumers, ages 18 to 24, are looking forward to returning to restaurants, with about one in four getting excited about concerts and movies. The younger folks are the most eager to get out and spend.
• In the past three months, 23 percent purchased more generic items.
• In the same period, 28 percent increased bulk purchases.
• 41 percent chose to save money more often by forgoing a purchase.
So, let’s break it down. People were stuck at home. That means they didn’t spend as much
as they normally would. If they were still earning money while at home, that put more in their pockets and allowed them to save more. That could hasten their purchase of a much-needed big-ticket item, or could jump-start their retirement savings.
If they lost their jobs, not spending became a necessity. If they are getting their jobs back, or getting new work as restrictions ease, they have some catching up to do. If their employer closed for good, these employees, after getting over the initial shock that their jobs are gone, now have a chance to try something new, should they be open enough to looking for it. .
Fortunately, there are many programs out there that allow people to do that. And, should they have to work from home, they can. But, they require a willingness to consider something they may never have thought they would do.
As a bonus, a person can take advantage of these programs AND still hold a traditional job, should he or she choose.
To learn about one of the best such programs, message me.
So, have your new routines created newer habits for you? Has the confinement encouraged you to re-examine your life and change a few things?
For many it has. The “new” normal could be different for many. That may not be a bad thing.
Peter

Leave a Reply

Your email address will not be published. Required fields are marked *