Whether you have lost your job, become sick and required to stay home, or your business revenue is drying up, you are feeling the very heavy financial strain. You may be wondering how long this state of little or no economic activity will last. When might I start working again? Will I have to sell things to live?
There is a significant degree of uncertainty in our lives today so how might we make plans to deal with the unknowns.
Some financial breathing room is possible on the expense side to ease the financial burden.
Keep the one or two of the essential entertainment items and then put the other expenses on pause such as hobbies, gadgets, and travel (no choice on this one give the global travel bans). Consider reducing but not eliminating the frequency of eating out or order in. Put a pause on your monthly long term savings such as your RRSP or TFSA
Other areas to broaden the expense tightening might be the grocery budget and putting the haircuts on hold a few months longer. If you have, more than one vehicle consider only insuring one.
In more extreme cases, your TFSA or RRSP money may be used to live on. This option has the potential to create the most financial harm; however, in cases of immediate need these are options.
Ideally, you want to have a financial plan and financial strategy that no matter what happens in the world, the market or the economy you know your financial plan is robust enough to withstand the shocks. Contact your financial planner who has the expertise and experience to help you have confidence about the future and give you peace of mind in uncertain times.
Reagan Pflug
Certified Financial Planner
Networth Management was started in 1995. In an effort to serve clients at the highest level we use “Values-Based-Financial-PlanningTM”. Through “Values-Based-Financial- PlanningTM” our client community is able to align their deepest held values with their most important financial goals using a personalized Financial Road Map.