Covid-19 & Money

For many people worldwide right now, the scale of the coronavirus crisis brings similarity to the catastrophic attack of 9/11 or the 2008 financial meltdown, these events reshaped society in great manners, from how we travel how we buy homes, public interaction and entertainment to the level of security and surveillance we’re accustomed to, and even in the manner of how we use money.

One thing that most of us forget is that events like these happened and they will continue to happen in many different forms, as pandemics, attacks, wars and economic distress. We cannot predict when the next event will happen or the nature of it, but we can prepare as much as possible financially.

There is no doubt that COVID-19 is hitting Canadians hard financially with many unsure how this is going to end. Incomes have changed abruptly, reduced or eliminated as many businesses are shutting down.

The biggest uncertainty during this pandemic is employment and with that comes the domino effect of reduced cash flow that will put a strain on our ability to pay our bills.

This is a time for us to pause, if you have been affected by being laid-off temporarily or permanently, you must evaluate your current situation and options. Some people may have to change careers altogether.

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Here are some things that you can do to reduce the impact on your finances during the pandemic:

1. Check if you qualify for government support if your income has been affected. For up to date information on programs check https://www.canada.ca/en/department-finance/economic-response-plan.html
2. Update your budget or create one and look for things that can be eliminated.
3. Speak to your bank and other financial institutions, only apply for deferral payments if you absolutely have it, as the deferrals will create more interest and in the end it will push back the date to pay your mortgage off. The same goes for any other loan or credit card you have.
4. File your taxes, if you are owed money this would be a great help and if you owe taxes you need to know right away and plan for it.
5. Evaluate your savings, if you are going to use them, use all cash vehicles first, then your TFSA as there are no tax implications there.
6. Speak to a Transition Wealth Advisor to help with a plan of action.

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For the latest update on COVID-19 news check  The conference board of Canada.

https://www.conferenceboard.ca/insights/covid-19?AspxAutoDetectCookieSupport=1

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For more information about how to enter the next phase of your life and the financial steps you need to follow book a complimentary Financial Health Assessment.