How to entrench positive COVID-19-enforced changes

12 May 2021 Daniella Bergman, Communications Manager at Allan Gray

Few have escaped the devastating loss of lives and livelihoods wrought by the COVID-19 pandemic, but many have also made positive changes, particularly to their financial habits. How can we entrench these new habits?

Setting goals, and even capturing them in a plan, is one thing, but sticking to them is notoriously difficult. Psychologists suggest that a key reason for this is that changing a behaviour is tough if the routines around that behaviour remain the same.

Well, COVID-19 has turned our routines on their heads. With regular routines thrown out the window, how likely is it that our lives have permanently changed and that our newly adopted behaviours will persist?

A behaviour change experiment

A series of interviews run by BBC Worklife aptly notes that we have just undergone the largest behaviour change experiment in the history of humanity. The question is, which new habits will stick?

The detractors claim that for change to take hold, it must be rooted in positive thinking – a factor that has been quite absent over the past year. In an analysis of 129 studies of behaviour change strategies, a British research group found that the least effective approaches were those that encouraged a sense of fear or regret. Most of the changes we have made as a result of the pandemic have been thrust upon us, and the general mood has been rather sombre. But how can we transform them from incidental to entrenched, particularly when it comes to our finances?

Five ways to get new habits to stick

There are countless recommendations from psychologists and life coaches on how to get a new habit to stick. Here are five that may resonate – along with a few suggestions on how to apply them when it comes to your finances:

1. Focus on entrenching one change at a time: COVID-19 has forced many changes upon us; some may be easier to maintain than others. Pick one that is most important to you. If you plan to save spare cash made available as a result of a more contained lifestyle, make this your key focus. While lockdown level 5 may have enforced an extreme spending detox (yes, remember when only essential service providers were allowed to trade and we could buy very little more than the basics?), it also exposed our spending habits and taught us to differentiate between our needs and wants. Before slipping back into prodigal ways, now is a great time to bed down a proper budget – and focus on sticking to it.

2. Identify your cue: A cue triggers your brain to initiate a behaviour. Pre-COVID-19, getting paid may have been your cue to go out and spend. COVID-19 may have broken this cycle and given you the opportunity to refocus this cue, making this your trigger to save. Commit to spending what you have after saving, and not the other way around. After a month or two of making your contribution to your savings or investment account before dealing with your other monthly expenses, you won’t even notice the dent in your disposable income. Even better, automate this response in the form of debit order.

3. Identify the reward: The reward is the end goal of your habit. Focus on what you are adding to your life, not what you are giving up. If you have eliminated wasteful spend and made space in your budget for saving, this will result in long-term gain, even if you miss the frivolity. Creating financial security and building long-term wealth takes dedication; but your commitment to these goals will ultimately pay off. Start with the end in mind: Perhaps you are saving for your child’s education or a deposit on a home – keeping this “reward” in sight will make this activity feel less like a sacrifice. Consider contributing to a unit trust or tax-free investment account; small contributions compound and grow over time.

4. Have a plan for when you get derailed: The unpredictability of life is one of the factors that make sticking to our goals difficult. Author-psychologist James Clear suggests that we need to plan for chaos; this will help us stick to new behaviours even when things don’t go according to plan. Clear advocates using the “if-then” technique. This entails planning ahead for what we will do if we hit a snag. When it comes to your investments, for example, having an emergency fund in place will prevent you from having to dip into your retirement savings if you lose your job. As we have all seen over the past year, we cannot predict what life has in store for us, and we need to expect the unexpected.

5. Be accountable: Tell someone about the habit you are working to adopt; this will make it real and they will hold you to account. Talk your family through the new budget and get them on board or tell a friend or colleague about your goals so that they can call you out if they notice you straying off the path. Alternatively, consult with an independent financial adviser. Not only will they hold you to account, but they can also help you put a financial plan in place that is tailored to your specific needs, and encourage you to stick to it in order to achieve your long-term objectives.

Quick Polls


Healthcare brokers have long complained about inflation-plus medical scheme contribution increases; but pandemic may have changed things. What will pandemic-induced changes in hospital utilisation do to medical scheme contribution increase patterns?


Below inflation increase for 2022, then back to inflation-plus
Long-term trend of below inflation increases
Inflation-linked hikes for 2022, then back to inflation-plus
This is a 2-year hiccup, inflation-plus increase trend remains in place
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