How to Manage Your Spending After Isolation

Written by Anne Papmehl

Thursday, June 18th, 2020

The end of COVID-19 lockdown restrictions in several Asian countries saw a massive surge in consumer "revenge spending."

Revenge spending is an extreme form of retail therapy: Where people overindulge in buying luxury goods after a long period of pent up demand.

Avoid Excess Spending by Planning Ahead

As Canada begins to loosen COVID-19 restrictions and open businesses, we may face these temptations, too. After months of self-isolation, social distancing and reining in our spending, what's the harm in a few little indulgences like a spa day, dinner at a posh restaurant or some swanky new bling to celebrate?

Have Some Fun...Within Your Budget

Spending on something fun and frivolous can be fine when done carefully, strategically and with a plan. Here are some tips on how to indulge in a little revenge spending, while staying on track to meet your financial goals:

1. Set a Budget

Think through how much money you'll allow yourself to revenge spend and whether it's within your current financial means—especially if your finances took a hit during the isolation period. Having a budget before you set out to shop will help you avoid overspending.

2. Have a Prize in Mind

Don't go aimlessly wandering around the mall, department store or boutique and impulse buy. Apply the same tactics and skills you learned during the lockdown when shopping for essentials like groceries. Know what you're shopping for, have a plan for getting it and stick with it.

3. Shop Around (Safely)

Can you get those goods or services cheaper somewhere else, or maybe wait until they go on sale? If so, you can save some money. Money saved—even if it's on a want rather than a need—is money that you can put towards some savings, investing or debt repayment. Window shop online before visiting a store to save you a trip.

4. Consider Whether the Purchase is Worth the Expense

Think through how badly you want this revenge purchase item and whether the joy you expect to get with it justifies the cost. If you expect to get just a momentary thrill, maybe you'd be better off doing something else with that money—like saving, investing or paying off debt.

5. Think About Shopping Locally

You can help some of your local businesses revive and thrive by including them in your revenge spending plan. Not only are you doing something nice for yourself, you're supporting your local economy—a win-win!

6. Keep Working Toward Your Long-Term Savings Goals

With everything on pause for a few months, market volatility and many of us dealing with lost earnings, long-term financial planning may have been put on the back burner. Now's a good time to revisit our long-term savings and investment goals and see what adjustments may be needed in order to achieve them. As you go about your revenge spending, try to do a little revenge saving and investing, too.

If You're Going to Buy Something, Enjoy it!

If you're going to spend, then do so without guilt, shame or remorse. After all, the idea of saving and planning is to afford the things in life that bring us joy. We could all use a bit of that right now! 

Share now

Spend and save at the same time with the Tangerine Money-Back Credit Card.

Learn about Tangerine’s options for spending that put you in charge.

Related posts

Money Mistakes I've Made While Being at Home
Money Mistakes I've Made While Being at Home
February 9th, 2021 | Maria Hyde
What Happens If You Miss A Credit Card Payment?
What Happens If You Miss A Credit Card Payment?
January 21st, 2021 | Kelley Keehn
Managing Finances After a Recent Separation
Managing Finances After a Recent Separation
December 3rd, 2020 | Dominique Jarry Shore
Legal Stuff
This article or video (the “Content”), as applicable, is provided by independent third parties that are not affiliated with Tangerine Bank or any of its affiliates. Tangerine Bank and its affiliates neither endorse or approve nor are liable for any third party Content, or investment or financial loss arising from any use of such Content.
The Content is provided for general information and educational purposes only, is not intended to be relied upon as, or provide, personal financial, tax or investment advice and does not take into account the specific objectives, personal, financial, legal or tax situation, or particular circumstances and needs of any specific person. No information contained in the Content constitutes, or should be construed as, a recommendation, offer or solicitation by Tangerine to buy, hold or sell any security, financial product or instrument discussed therein or to follow any particular investment or financial strategy. In making your financial and investment decisions, you will consult with and rely upon your own advisors and will seek your own professional advice regarding the appropriateness of implementing strategies before taking action. Any information, data, opinions, views, advice, recommendations or other content provided by any third party are solely those of such third party and not of Tangerine Bank or its affiliates, and Tangerine Bank and its affiliates accept no liability in respect thereof and do not guarantee the accuracy or reliability of any information in the third party Content. Any information contained in the Content, including information related to interest rates, market conditions, tax rules, and other investment factors, is subject to change without notice, and neither Tangerine Bank nor its affiliates are responsible for updating this information.
Tangerine Investment Funds are managed by Tangerine Investment Management Inc. and are only available by opening an Investment Fund Account with Tangerine Investment Funds Limited. These firms are wholly owned subsidiaries of Tangerine Bank. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.