Why COVID-19 is making some people richer

The COVID-19 pandemic has been a devastating time for many workers and businesses. But if you’ve kept your job but are still stuck indoors, it may actually have been good for the hip-pocket.

STAYING home has been an enriching experience for some – and we’re not just talking about reconnecting and spending more time with hubby and the kids.

If you have been lucky enough to keep your job but are still stuck indoors – except for those essential trips to the supermarket or to exercise – there should be almost $1000 more in your bank account.

That’s how much the experts reckon the lock down has stopped us from spending.

Research from the Finder app has found Australians have saved on average $955 in April compared to March on expenses such as clothing, entertainment, travel and dining out.

READY TO SHOP: Jess Wong (left) and Alicia Hu, both from South Bank are ready for shops to re-open. Picture: Steve Pohlner

This is how it breaks down.

Overall spending (not including bills and loans) is down 21 per cent.

The biggest savings has been on not having to dress up for work or to go out with spending on clothing and shoes down 68 per cent or $164 less

It was followed by entertainment (which includes cinemas, sport and other events), with a 52 per cent drop in April, down $233

Travel saw the third-biggest fall, with a 48 per cent drop, or $221 less in April to date.

We also saved 33 per cent on petrol ($67 less), 19 per less on groceries (a drop of $153 and 14 per cent less for both other shopping ($32 less) and, surpringly given the queues outside Bunnings we’ve spent $21 less on home improvements.

Fred Schebesta, co-founder of Finder said all that panic buying on groceries was now paying off.

“While so many people were panic-buying last month, we’re seeing much less spending during the lockdown as people have stocked up on food and we’re spending less on travel, restaurants and clothing,” he says.

“What’s happening is a forced shift in behaviour that will never go back to before the coronavirus pandemic.

“For instance, people are being forced to learn new technology like video conferencing apps, people will get used to shopping online, relying more heavily on the internet, and working from home.

“We’re going back to being more frugal and looking for ways to save money and make money.”

He said he expected to see the spend-less tend go on for at least another month.

“We’re expecting May will see a similar trend as lockdown restrictions are still in force although easing, and consumer sentiment is low.”

The key to more savings will be to maintain the “savings” rage as the lockdown restrictions ease up.

And for that Saved by Michelle turned to Helen Baker, a licensed financial advisor and spokesperson at Money.com.au, who has put together suggested budgets for people having to make do on the JobSeeker and JobKeeper payments of just $550 or $750 a week.

Under Helen’s budget there’s $150 for groceries.

With the advice that to always cook at home, and only treat yourself to takeaway once a month at most and stay away from those pre-prepared meals at the supermarket.

“It’s always cheaper to buy groceries and make it stretch across multiple meals, even if the cheapest pre-packed meal costs you $8. Three meals a day at $8 each, seven days a week, will see this total $168 – which puts you $18 over the $150 budget, without money to spare on other household items,” she says.

Woolies and Coles have also re-instated their specials catalogues so start shopping around for the cheapest prices.

Helen’s advice is to also re-think that trip to the hairdresser although if you are on $750, she reckons allocate $75 a quarter for a haircut.

Being realistic you will probably want to have a coffee and a drink – so she’s allocated $10 a week for caffeine (double that if you are on $750 – and $30 a week for booze.

“It’s a reasonable budget to spend each week and could get you two bottles of wine a week or a case of beer to last a fortnight.”