How to handle your post-lockdown finances

Two people at the beach at sunset, drinking beers as lockdown social restrictions ease and spending habits change.

It’s undeniable that pandemic-induced social restrictions and lockdowns have changed the way Australians handle their finances. Most people have had to reconsider how they spend their money and set their savings goals, and many have experienced financial instability and hardship. 

So, as we approach the light at the end of the lockdown tunnel (touch wood), it might be time to assess some of the savings and spending habits we’ve picked up over the last 18 months and what changes we may soon face. 

Here are a few things to consider:

Good lockdown habits to keep

Adding cash to savings goals. A recent report from ME Bank found many Aussies are more confident in their financial security than before the pandemic, with a 10% jump in the number of households reporting they were saving money. However, this same report also found a considerable proportion (21%) had less than $1,000 in savings.

If the pandemic or other circumstances have impacted your financial situation, here’s a guide to saving on a smaller income, and other tools to help you reach your savings goals.

Exercising at home and outdoors. With many gyms and classes having to close their doors or go virtual, Australia’s movers and shakers have had to get comfortable exercising elsewhere. While it’s great to support local trainers and initiatives, it could benefit your bank balance to continue incorporating a few free fitness sessions into your routine.

Maintaining a side hustle. If you’ve recently found the time to turn a hobby into a side-gig for a little extra cash, see if you can keep that ball rolling in post-lockdown life. It might not always be doable, but if you’re keen to give it a go, we’ve got some cracking advice from entrepreneurs on how to make your side hustle a hit.

Cooking more often. Whether you’re getting online grocery deliveries or have fallen in love with meal kits, cooking at home can help you save a buck. So, even as you start celebrating your favourite local eateries reopening with dining-in feasts, be sure to keep your Nigella kitchen skills sharp for more budget-friendly meal days. 

What to do about costs that may increase post-lockdown

Transport costs. Whether you’ve scrapped the commute or have become used to walking around your limited lockdown area, it’s likely that you’ve seen a reduction in transport costs of late. But if you are required to head back to a physical workplace in the months ahead or are planning future roadtrips, you’ll likely see these costs shoot back up. If feasible, it could be worth incorporating more affordable transport options like cycling and public transport for future travels (when restrictions allow).

Holiday splurges. While international or even interstate travel still feels a way off, it may well make it to the table in the months ahead for fully vaccinated explorers. Recent ABS data shows a third of Australians plan to spend money on travel in the next 12 months, with this being the goal the largest proportion of people are dedicating their savings towards. If you’re one of these potential holidayers, it pays to start saving early for future adventures. This way you can rely on the cash you have instead of acquiring debt while you travel.

Social outings. Let’s be honest, you deserve a splurge on this one! If you’ve been separated from loved ones recently, you’ll want to celebrate when you reunite. So, plan for an uptick in your ‘fun’ budget, and enjoy it. 

When you’re not spending cash, make sure you’ve got it stashed somewhere it can be steadily growing, like one of the high interest accounts below.

Compare high interest-earning savings accounts

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Last updated 21 July 2024 Important disclosures
  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first 4 months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2024 Mozo Experts Choice Award winner.

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  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

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  • Bonus Saver Account

    5.00% p.a. (for $0 to $250,000)

    0.05% p.a.(for $0 and over)

    Yes up to $250,000

    Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.

    Start saving and earn interest with just a $20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.

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  • Savings+Bonus

    5.00% p.a. (for $0 to $250,000)

    2.00% p.a.(for $0 to $250,000)

    Yes up to $250,000

    Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.

    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

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  • Mozo Expert Choice Badge
    Savings Maximiser

    5.50% p.a. (for $0 to $100,000)

    0.55% p.a.(for $0 and over)

    Yes up to $250,000

    For customers who have an Orange Everyday account, deposit $1000 into a personal ING account, make 5 eligible transactions and grow their nominated Savings Maximiser account each month.

    Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

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^See information about the Mozo Experts Choice Savings Account Awards

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