5 Tips to Curb Boredom Spending during Covid-19
As more and more countries put strict social distancing guidelines in place to slow the spread of Covid-19, one of the unfortunate side effects is more time spent online.
During China’s main quarantine period in February 2020, QuestMobile noted that daily time spent online via mobile internet rose from 6.1 hours per day in early January to 7.3 hours when workers were placed in self-quarantine.
Those figures are likely the same, if not higher right now, in Canada as millions stay home and practice social distancing.
For many, that time spent online may be watching movies and shows through one of the many streaming services. Others are spending time on social media platforms where they are served an endless number of product ads, while some simply opt for some online retail therapy to break the monotony.
This trend has already been noted in countries where the Covid-19 outbreak began earlier – 50% of Chinese and 31% of Italian consumers say they’re using e-commerce more frequently.
With thousands of Canadians being impacted financially by Covid-19, now more than ever it’s important to practice restraint, create a budget and stick to it.
While many are trying hard not to fall ill, we should all also be actively working on not falling into unnecessary debt during this crisis.
Here are 5 tips to help you and your finances during the Covid-19 crisis healthy:
1. Ask yourself “why am I buying this?”
Everyone has made an impulse buy at one point or another. Whether it’s perceived savings when items are on sale, boredom or that short-term high you feel buying something. Online retailer stores are designed to separate you from your money as quickly as possible – you need to take a pause before you click ‘check-out’ and ask yourself if you really need that purchase.
Maybe if it’s groceries or cleaning supplies it’s a valid purchase – but that pair of pants from Banana Republic? Do you really need them while taking video conferences from home and aren’t able to socialize?
Take a pause before you check-out to consider the purchase – institute a rule where you add all noncritical purchases to your ‘wish list’ for 3 days before you buy it.
By delaying the purchase, you are giving more opportunity for your rational side to consider the purchase rather than letting your emotions rule your bank account.
2. Do other things on your phone
The easiest way not to shop online is to find other things to do. Your mobile device is a marvel of modern technology, you can read a book, listen to podcasts play online games but be careful with those in-app purchases 😉
The Overdrive app is a great ebook /audiobook resource that connects to your local public library account.
Read books for free and save your money. There are a multitude of free online learning courses available currently. Use this time for self improvement, to learn a new skill or think of ways to start a small side hustle that can earn you additional income in the future.
3. ‘Unsubscribe’ from the panic buys
Flash sales from your favourite online retailers can often trigger an emotional response because the deals are time-sensitive. This is a classic marketing trick to try and make consumers act quickly so they don’t miss out.
The solution to this is easy – unsubscribe from all the online retailer emails that you get.
Seeing these deals pop-up in your inbox every day is only going to tempt you to the sites and may result in you buying things you don’t really need.
Unsubscribe for now and that way if you really need something you can go looking for it.
Focus your spending on what you need rather than what online retailers think you need and save your money. Something advertised as 50% seems like a great deal, but don’t think of it as 50% of, think of it as 50% spent.
4. Make it hard to buy stuff
One of the best ways to curb online binge shopping is to make it harder for your future self to buy things by setting up a website blocker.
Free extensions like StayFocusd and WasteNoTime work with most web browsers to block sites that might be distracting or bad for your balance sheet.
By using these apps you can block sites during certain times of the day (i.e. your prime online shopping hours) or even limit how long you can spend on these sites during a given day.
By building in this distraction-free tool you’ll start to create new behaviours for yourself that keeps you more focused on your tasks and spending less time browsing/buying through online stores.
If you are finding it really hard, have a family member change the password on sites like Amazon etc or agree to a household rule that two people must approve any purchases until things return to normal.
5. Keep a detailed Covid-19 budget
Covid-19 has created a new reality for all of us. Many are being affected financially through decreased employment while others may have additional/different expenses.
We encourage everyone to create a Covid-19 budget and track all your revenue and expenses to make sure you stay on your new budget.
Once you’ve completed this new budget it will help you decide on non-essential purchases.
By asking yourself, “can I afford this?” and reviewing your budget in black and white you’re more likely to avoid emotionally charged purchases.
Make a budget, keep it handy and avoid spending where it’s not needed. Read our 10 step money management plan. Its all relevant for today. www.4pillars.ca/blog/a-10-step-money-management-plan-to-organize-your-finances
For many its not going to be as simple as creating a budget as the numbers simply won’t add up with the reduction in income. Even though income has dropped, the absolute bare minimum expenses for food and shelter will exceed income.
Emergency funds and available credit will soon be used up and it’s imperative to understand what benefits you are entitled to receive, what concessions the banks are willing to make and if you need to seek professional help for your financial situation.
If you want more information on the financial support being made available the federal governments and banks, sign-up to our 4 Pillars COVID 19 newsletter and stay informed.
Most importantly through this time is to follow the guidelines of the health care officials in your area.
