With the current roll-out and distribution of novel coronavirus vaccinations in train in most regions across the world, there is guarded optimism that a return to normal life is in sight. For many people, the past year has been a time of unparalleled upheaval, presenting various challenges and leaving a considerable toll as we grappled with the emotional fallout. The pandemic hit Jamaica in March 2020, when the first confirmed case was recorded, and almost overnight collective behaviours were changed, not the least of which was in the area of personal finances due to sudden displacement from unemployment. The Statistical Institute (STATIN) reported a 10.8 per cent lowering in employment figures as at July 2020, compared to the corresponding period the year prior, directly attributable, according to labour analysts, to the pandemic’s effects on economic activity. Many lost their jobs, or found their salaries significantly reduced. But even those who were fortunate to retain employment found, too, that their spending habits were now being called into question because of a looming uncertain economic future.

Just when pandemic fatigue was about to completely set in, things have however started to slowly pick up. Salaries have now begun to return to pre-COVID rates, and the furloughed have been returning to work. This is a good thing, as it signifies employers’ outlook at an imminent return to normalcy.

But, what exactly will we consider normal post-pandemic? There’s a sense of foreboding in some quarters that this normalcy might be a return not simply to life pre-March 2020, but also the toxicity of certain facets of that life. For instance, the attitude towards money. But there are lessons in abundance that COVID-19 has imparted, which you should keep in mind.

You can live without more than you think

This pandemic has taught that it’s important to know the difference between wants and needs. When forced to work with a paycheque that suddenly contracted, you had to make adjustments to how you spent. In this prioritisation, you were forced to cut non-essential expenses, such as eating out almost every day. Now is the time to ask yourself whether you want to resume that expense. Sure, cooking can sometimes be a chore, but is it worth going back to that expense that itself incurs even more expense? Cooking is healthier and more cost-effective. In past articles you would have heard me say I eat my money given that so much of it was spent at restaurants. Carefully examine all the areas that you had to cut back on, and if they really aren’t necessary, don’t go back to them. Put that money towards a dedicated emergency savings or retirement fund instead; we all now have first-hand experience of how important it is to have savings and/investments to rely on.

It is important to have a budget now more than ever

Did you spend more or less over the past year? Examine your bank statements to determine this. After you got hold of yourself, regained control of the initial panic and stopped inexplicably hoarding toilet paper and baking flour, chances are you realised that your savings were thin, and the interest alone on your almost maxed-out credit cards was in danger of becoming too onerous, so you had to curb spending if your long-term financial goals were to ever get back on track. Continue to put boundaries on your spending. More than ever, you need to prioritise budgeting and stick realistically to it. Even if you have always made budgets, be mindful that you need to return every now and then to seasonally upgrade your budget. As Christmastime approaches, for example, when COVID protocols are relaxed (yes, start to envision that a time like this will come) and once again you can enjoy a grand family celebration, you need to recognise that the budget that served you for earlier during the pandemic simply will not work now. If you do not take this into account, the effect it will have is you slipping into debt once again, especially if you just managed to extricate yourself from the debt COVID-19 plunged you into.

Have a plan for emergencies

The pandemic taught everybody that some things cannot be predicted, but you don’t have to be blindsided and then derailed when the unexpected crops up. To be clear, this plan for emergencies isn’t some nebulous idea of sticking a few dollars into a savings account somewhere; this only helps to foster unnecessary discretionary expense. If you did not have any before, or were kind of lax with them, dedicated long-term investment strategies are key. Prioritise creating an emergency fund which cannot be touched on a whim, say to purchase a darling bedroom set that’s on sale at your favourite home supplies store. Establish a fund for how you should treat with an unforeseen event, like the loss of a job or a disruption in health. If you can arrange for this to be automated, thus reducing the temptation to spend, then even better.

There is a light at the end of this very dark COVID-19 tunnel. Set yourself up for success by taking control of your hard-earned finances and looking to the habits that you cultivated this past year to propel you forward on your financial journey.