The impact of the pandemic on lifestyle and the ability to save

The impact of the pandemic on lifestyle and the ability to save “It is not the strongest of the species that survives, nor the most intelligent that survives; it is the one that is more adaptable to change”, Charles Darwin once said.

• Covid-19 has had a significant impact worldwide, with devastation made across different aspects of life, such as unexpected damaging effects such as lockdowns, and loss of income causing weakened livelihoods. The financial implications have caused job losses and affected the ability to save, and health issues such as mental health worsening by the restrictions and uncertainty of the future. Among the more vulnerable part of society are the poorer households and those in unofficial employment, such as casual labourers, seasonal workers, not having enough savings or inadequate sources of income in urban and rural environments. The impact of covid is still sending shockwaves globally, with the lasting impact still being felt daily. The unfortunate effect of the economic crisis has caused several thousands of individuals to lose their primary sources of income, falling deeper into poverty. The socioeconomic troubles experienced by some people put their ability to survive in turmoil, from the financial loss to the risk of contracting covid.

Economic hardship can strain some individual’s ability to save as some households have less money to set aside for necessities such as food, as some people were made redundant and forced to rely on food banks as a source of getting food. However, on the other hand, others brought food, antibacterial and toilet paper in excess. The overspending on these products sometimes went overboard, with the government having to step in and supermarkets limiting the number of products such as toilet paper sold to each customer. The panic buying left the shopping isles and online supermarket websites looking like zombie towns. The money spent on these products could have gone towards saving or donating to food banks. Dr Dimitrios Tsivrikos, a consumer and behavioural science expert at university college London, explains the types of panic, disaster, and general panic. Disaster panic can include natural disasters where people tend to be given more information and more precise instructions, as it takes place every year in different parts, so governments are usually more prepared for potential natural disaster occurrences. However, for general panics such as the pandemic, which is something that the world is not accustomed to dealing with on such a large scale and different conflicting messages presented to us such as stay home but don’t stay home, for many bulk buying on essentials such as toilet paper was a way of trying to control the situation.

Nevertheless, the pandemic also had a positive impact on some people, as they were able to save a significant amount due to not spending money on transport due to working from home, not having any entertainment places to go to, and not going abroad due to restrictions during lockdown instead the money went towards their savings. According to the bank of England, twenty-eight per cent of households had been able to save more because of the pandemic, whilst 20% drained their savings. Households that experienced increased savings because of the pandemic were less likely to see incomes fall because of unemployment than those who experienced fewer savings.

The pandemic has dramatically increased the demand for online supermarket delivery; even with restaurants, pubs, and other retail outlets reopening, the need continues as Ocado and Sainsbury’s have both said, Sainsbury has noted that this has increased to 18% for online orders made through their website compared to only 8% before the pandemic. Sainsbury’s has also said that its delivery service rose to a staggering 142% compared to 2 years before the pandemic. Ocado has had a similar experience with their collaborative partnership with M&S rising to 20% in the first half of their financial year.

The pandemic has taught us many lessons, but perhaps one of the most important lessons learnt is the need to change lifestyle and own vision towards saving, regardless of socioeconomic status, rich or poor must have realised that the world has changed altering our lifestyles, to some extent.

The inequality among the poorest and richest increases further when unfortunate circumstances such as the pandemic occur. Individuals with more sources of income or more money to save are more likely to keep afloat than those who already struggle or are just about able to keep their heads above water. The importance of saving is even more significant when unexpected situations unfold, such as covid and redundancies. Humanity needs to unite and help each other just like they did during the lockdowns because this is a global fight far from over, even with the lockdown being lifted. Dr Dimitrios Tsivrikos explanation of the differences of panic gives an insight into why inevitable people panic brought items as a reaction to the pandemic; this shows how unfamiliarity can make people think of the inevitable impact that may come with an unfamiliar situation. Would you do things differently if things get dire again? Do you think you would be ready? Would you have enough savings to rely on? When you are prepared to take those steps towards saving more efficiently, apps such as Intellisaving app are here to facilitate your saving path.

Intellisaving is passionate about saving and believes it is vital to save efficiently, which is why the app focuses on enabling you to have all your saving accounts in one place, to give you easier access to your saving accounts regardless of the bank/financial institute. The personalised portfolio summarises your savings balances, which can facilitate saving as you can compare other saving accounts, not just your own, to see the best market rates. The platform also enables you to plan your next steps on your saving journey; for instance, if you want to go for another saving account, you do not already bank with the information is at your fingertips, which will help you make more informed decisions. The inevitable can happen at any time but planning and saving can help you through even the darkest hours. It is not all gloom and doom as job vacancies have increased to the highest in a year, with more vacancies, the opportunity to save increases.

Tags Savings Location-: INTELLISAVING LIMITED (No: 12827813) 20-22 Wenlock Road, London, United Kingdom, N1 7GU Email Support support@intellisaving.com