How To Handle Spending More As We Emerge From Our Couch-Crevice & Out Into The World

We know the drill, now. Case numbers lower, restrictions ease and anticipation builds. But as the excitement for more freedom swells, so too can worries about spending more.

We’ve been released back into the wild after holing up at home and before we know it, all those real-life expenses come careening back into (and on top of) our budgets. Add onto that, the pressure – and desire – to catch up with every man and his dog to make up for lost time, and no wonder it feels like our expenses are endless.

If you’re finding your excitement is being spoiled by the thought of spending more as extra expenses pile up, we’ve got some suggestions to help you keep those feelings at bay.

Manage the ol’ expectations

As always, managing our expectations is easier said than done, but it’s a biggie for helping curb worries around extra expenses.

We’re going to be dining in restaurants, buying new outfits to wear out and paying to experience live music and art again. So, it’s normal to be spending more as you get back out there and catch up with your people.

And when that time does come for us to get out of that cosy crevice on the couch, you should enjoy that fun. Put aside some funds that are purely allocated for a good time so you don’t go through the rollercoaster of expecting to have enough to cover all your everyday expenses when you don’t.

Handling unexpected expenses

Research undertaken last year by CommBank and YouGov, into the way young Aussies spend, has shown there’s an emerging behaviour of ‘side-stepping’ necessary expenses. Basically, that’s a nice ‘n fancy way of saying that 65% of us are putting off paying for everyday stuff we legit need, with 44% of young Aussies forgoing those items for a more exciting purchase.

Awkward Schitts Creek GIF by CBC

Logically those stats feel like a shock, but in real life I’m definitely guilty of it and a bunch of you must be, too. (When was the last time you went to the dentist, am I right?) I’ve been putting off getting my car serviced because I don’t want to see what kind of damage it’ll do to my wallet. But, I’ve also bought expensive things I want like concert tickets and an Apple watch in the interim, so…

Why are we putting it off? The research showed that the three biggest reasons (in order) around why we’re sidestepping expenses are that we’d have to make a sacrifice, never have enough money left over to cover little expenses and we felt like everyday items weren’t as urgent. Nearly nine in 10 young Aussies are scrimping on their everyday lifestyle costs in a bid to save for expensive, one-off items, like a new couch or going to a festival. Which, tbh, after losing two years of the prime of our lives, I get it.

Given so many people are saying they are forgoing essentials, CommBank’s StepPay can help Aussies better manage unexpected costs, essential purchases and the temptation of exciting buys. It can give you the comfort of knowing you may have a backup of up to $1,000, so instead of side-stepping that unexpected thing you need, you can purchase it now, pay later and refocus your financial goals. Costs over $100 will automatically be split into four equal, fortnightly payments. There’s no interest or ongoing fees and it can be used anywhere Mastercard is accepted. You can access StepPay in the CommBank app to keep all your banking in one place and manage scheduled repayments easily. Have a squiz to see if you’re eligible for StepPay, here.

Review your budget more often

A budget is a brilliant idea if you’ve got some anxiety about extra expenses bubbling away (and in general if you’re yet to experience the thrill of a savings spreadsheet). 

Say you usually budget by the month and have everything automated to set and forget (good on you if so, you organised king), track it more frequently as you start getting back out there. Have a peek weekly or fortnightly so you can keep tabs on if you’re letting your social life rip too much. Have a look, see if you need to tone it down, and then adjust accordingly.

It’s also a glorious way to get a handle on your habits. If you tend to stick your head in the sand, having a look at your spending will show you the cold, hard facts on what you pay more for. Given almost half of us will sacrifice our lifestyle for a more exciting purchase, suss out what your kryptonite is. Maybe it’s the latest in tech or the trendiest clothes around? But whatever it is, be aware of it.

From an online budget planner, to a spend tracker with insights, CommBank has a bunch of free digital tools and resources that can help you review and manage expenses easily.

Boundaries, baby

Say No Doc Brown GIF by Back to the Future Trilogy

Ah, one for all my fellow yes-people out there. If you’re one of the 31% like me who’d admittedly rather go out with friends than deal with the mundane everyday expenses,  you don’t have to say yes to every plan put to you. If you do want to go but your budget is saying otherwise, suggest pushing the plans back by a week, or to later in the month so your funds can breathe for a sec. Or, there are ways to frugally paint the town red. You could do dinner at home or a walk in the park to save some moolah.

Since these ~unprecedented times~ kicked off, it feels like half our generation wants to chuck their money into living it up and the other half is saving for any other surprises that may crop up. You’re not alone if you’ve been feeling caught between the two frames of mind! Cut yourself some slack and try find a middle ground approach that works for you.

As this article has been prepared without considering your objectives, financial situation or needs, you should, before acting on this advice, consider its appropriateness to your circumstances.

Credit applications subject to approval. Terms, conditions, fees and charges apply. Consider if appropriate for you. Commonwealth Bank of Australia ABN 48 123 123 124. Australian credit licence 234945. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

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