Get Ready

How to prepare your finances for reopening

Believe it or not, but it’s time to prepare your finances for a return to (close to) normal life. It’s a good idea to review how the pandemic has altered your spending and saving, and what changes you need to make for the future.

Take it All In

The pandemic likely changed almost everything about your finances. Take a look at how things changed in 2019 and think about how things will change in 2021 and beyond. Take travel. You probably didn’t go anywhere during 2019, but with the world getting vaccinated and opening up, it’s time to start adding airfare and hotels and more to your expenses. Get a good idea of your big picture spending so that you can make changes as needed.

Prioritize

Take a look at your budget and make sure you’re saving is on track and your debts are low. Once those things are in order, it’s time to examine your discretionary spending. You might have spent plenty on takeout during the pandemic. However, you might prefer to eat at restaurants, and now that’s an option. Make sure you’re not adding to your discretionary spending. If you want to spend more in one category, reduce your spending in another.

Plan for the Future

Use the time now to plan for your future. As Marketwatch suggests, if your student loan payments are on hold, prepare your budget for those payments to begin again. If you do want to travel, start building a savings account with that in mind. The future is bright, so make sure your finances are ready for it.

Chris O'Shea