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1: Know where your money’s going and control spending
The effort to halt the spread of COVID-19 is putting pressure on many Canadians financially. While a number of new programs have been introduced to ease the burden, they may not cover all of your expenses. To ensure you come through this crisis in good financial shape, consider cutting back or eliminating certain expenses to manage your current finances.
With the questions around the economic impact of the current health crisis, it is important to consider your cash flow and re-evaluate your expenditures. If you need to rearrange and reprioritize your budget, start with non-essentials you can easily give up. Review your current spending and determine what additional
bills you could eliminate. This may include reviewing subscription fees to digital services, limiting online shopping or pausing reoccurring charges on things like gym memberships.
I can help you take stock of your finances and understand how much cash you have available and how long you can realistically live on that amount, based on your current expenses. I can also help to ensure your budget can accommodate potential fluctuations in your cash flow. This knowledge alone will help give you the confidence to manage your money better.
2: looK after your financial health
The global pandemic is a financial emergency for many. If you have been building a ‘rainy day’ fund and now find yourself unable to cover your expenses, this is the time to use it before resorting to credit. If you had no emergency fund in the first place, this is an opportunity to start building one, if possible, or start planning to build one when the financial pressures ease. This crisis has reinforced the importance of a cushion of savings to protect against the unexpected and ease uncertainty.
Managing your budget more closely and reducing unnecessary spending is key to your finances and credit management. Reduce unnecessary credit card expenses by eliminating purchases you can live without.
Many Canadian banks are offering to reduce credit card interest rates and mortgage deferrals to those consumers facing financial hardship due to the current crisis. If you are exploring these options, read the fine print on your credit card to know the potential impact on your credit score, should you request financial relief. Terms and interest rates can vary depending on the bank.
Part and parcel of keeping your credit on solid footing is checking your credit score regularly to identify and address any potentially fraudulent activity. It is another step in ensuring your credit is in good standing so that you have access to it when you need it, on your terms.
I can help you get a handle on your debt and get your finances in shape for today and the future. If you’re experiencing financial difficulties and considering any payment deferrals, please let me know so that I tailor my advice and your financial plan to your situation and help ensure you get the right support for your needs. You do not have to deal with these financial complexities by yourself.