Positive changes in spending habits will hopefully outlive the pandemic

The impact of the COVID-19 virus and the related social distancing requirements have touched every one of us in some way. This disruption to life has been uncomfortable for many and tragic for some, especially from a health perspective.

However, positive changes can come from disruptive or uncomfortable times. An external force that shakes us out of our routines and habits can be an opportunity to reevaluate certain aspects of our lives, large or small.

From a personal finance perspective, the current pandemic has caused nearly everyone to change their spending habits, work experiences and reshuffle priorities in response to the new circumstances. Look for opportunities to reevaluate old habits and make changes when we get to the other side of this pandemic.

▪ Spending Habits: The forced change in lifestyle has undoubtedly affected spending habits for most people. Now is an excellent time to review your spending habits.

You may discover that eating out several times a week was an expensive habit and eating more meals at home allows you to spend less and connect more with family.

Have you found that even with much more time on your hands, you still do not watch many of the 300 channels on your cable package? Cutting the cord now may be the right move.

Whatever it is, take a look and commit to making those changes that will save you money once things open up. Allocate that cash savings to more important priorities.

▪ Emergency Fund: If things have gotten tight due to a job loss or reduction in income, a cash reserve to help fill the gap is a life saver. This has become apparent for many during this time. If you had a cash reserve and are tapping it to get by, you know how valuable it is.

Be ready to focus on refilling it at the first opportunity. If a lack of reserves has made this time more difficult or stressful, be ready to make a change when you can. A good target amount is three to six months of necessary living expenses.

Consider parking the funds in a higher interest online savings account to earn more and get one degree of separation from your primary checking account.

▪ Work: Millions of Americans have lost their jobs or had hours and incomes reduced during this crisis. The pain of this will be felt for years to come. If you find yourself in this situation, take stock of where you are at in your career.

If you had ever considered making a career or job change, this may be an opportunity to take the leap. Think about your skills and the type of work that gives you satisfaction and try to find a match. Look to acquire new skills or training if a new direction is needed.

▪ Volunteer: Many of us have become more socially aware during this time of stress in our community. Perhaps there are causes close to your heart where this period has highlighted a need in the community.

Think about how you can volunteer your time or contribute resources to help.

Many charitable organizations are in need right now. If you can help now or in the future, it will certainly be welcomed.

The COVID-19 pandemic has been a major disruption in our lives. This uncomfortable period could lead to some positive change in your personal finances if you take advantage of the opportunity to reevaluate things like spending, cash reserves and your career.

This may lead you to an unexpected period of positive change once the crisis abates.

Lucas Bucl is a Certified Financial Planner professional and member of the Financial Planning Association of Greater Kansas City. He is a principal at Aspyre Wealth Partners in Overland Park, where he helps clients define what success means to them and then craft and execute a plan to achieve it.