Covid-19 and your money

I never thought I would experience a pandemic in my lifetime, but here I am. Everything feels so surreal! It's heartwarming, however, to witness people supporting one another and spreading hope and faith.

Naturally, I consistently concentrate on the financial side of our lives. The coronavirus has revealed those who were financially vulnerable now that the tide has receded. The weakness in your financial defenses is becoming apparent, and the current pressure is attempting to exploit it. We all have the opportunity to learn from each experience, whether positive or negative.

Due to the enforced social isolation, I've had ample time to assess my financial status, and you should consider doing the same. Are you worried because you lack savings to rely on? Can you afford your rent or mortgage with a reduced income? Do you have life insurance? Do you have disability coverage?

As a small business owner, do you have Business coverage to cover your essential expenses in case you become ill? Have you set aside an emergency fund equal to at least one month's expenses? What we refer to as a retained earnings account? These are all important questions to consider at this moment.

You've been told, "save for the rainy day", well now it's raining. If you are in the category of those who have no rainy day fund here is my advise.

• 
  

You will need to adjust your budget. Some items will need to be deprioritized while others take precedence. For example, you should prioritize expenses like rent, utilities, food, and transportation (such as gas and car insurance). Other expenses, like clothing, dining out, gym memberships, or certain credit card payments, may need to be postponed or delayed.

• 
  

If you can cover those essential payments, you're in a good position. Then, ensure you've utilized all available government support, such as EI benefits or the CERB program. This will provide you with a crucial safety net.

• 
  

Contact your landlord, bank, and any other creditors to inquire about the possibility of deferring some of your monthly payments. The most significant ones are your mortgage and car loans. If possible, make only the minimum payments on all your credit cards. You're in survival mode, so the aim is to extend your limited resources as much as you can.

Being confined at home will lead to a significant reduction in your transportation and food expenses.

• 
  

This is the crucial point! Conduct an analysis of your current financial situation and commit to implementing changes based on the lessons you learn. Allow me to assist you. Your primary decision should be to ensure you always maintain an emergency fund of at least $1000. Prudent individuals save money.

Take a deep breath, stay focused and stay strong. You'll get through this and at the end of it you'll be stronger.