Lesley-Anne Scorgie Contributing
March 27, 2020
In uncertain times, here are some sensible steps you can take
Today's global challenges can be an opportunity to be closer to family, to tackle DIY projects at home and to implement even better financial practices in our households that will make us more resilient for the future.
Here are a few suggestions to help protect your money right now. If you need immediate financial assistance, ask for help from the government (online requests can be made through CRA My Account and My Service Canada Account) and from your bank.
Take advice from reputable professionals
No one has a crystal ball. But there are a lot of people giving advice (paid and free) on topics ranging from your health to investments. Before you follow the guidance of others, consider the source carefully. Are they qualified? Do their ideas make sense?
From the standpoint of your investments, know that there are still excellent quality stocks, bonds, funds, and ETFs, and most are currently priced at a bargain. Good advisers will help you sort through what's worth buying, selling and holding during this downturn. It's important to note that most investment professionals agree on one thing right now: there will be a long road to full recovery for all investors.
Build emergency funds
It's more important now than ever to save your money. Employment could quickly become scarce. And though the government is implementing financial aid programs for businesses and individuals who have been impacted by the crisis, it's unlikely to cover all that you will need to pay rent or a mortgage, buy groceries and necessary supplies, and service credit obligations. Thus, in the coming days, most major banks will start offering temporary relief from payments. You will need to call your financial institution to discuss the details. If you have exhausted the above options plus your emergency savings, a low-rate line of credit can help bridge the gap between your financial obligations and a reduced income.
Waste nothing
We need to be more efficient with what we have. Food waste should be non-existent, garbage minimized and single-use anything (plastics, clothing and paper products) should be used multiple times before discarding, without compromising proper hygiene. If something in your home is broken, consider DIY solutions on YouTube.
Look for work
If you find yourself out of a job, hunt for opportunities. Certain companies with robust delivery systems, such as Amazon and large grocery chains, are ramping up temporary employee hiring. Other businesses will be seeking qualified talent once we emerge from our respective states of emergency. If you're lucky to be one of those people with great job security, consider adding another source of income in case your primary one dries up. This could include consulting, dog walking, income from investments and more.
Watch for fraud
Fraudsters are opportunists and they are having a heyday right now. Do not reveal personal information to anyone via email, online or the phone. Legitimate institutions will have you log in to your secure account online, not by clicking on a link within the email.
File your taxes
With all this unplanned time on your hands, why not get your taxes organized? The tax deadline has been extended by one month to June 1.
Leverage the power of technology
If you're feeling a bit cooped up, use technology (and the free data overage allowances that most telecoms are offering right now) to talk to your friends and family. Meet with your doctor virtually, if you need to. Host your meetings online. Follow along with your favourite free fitness app. Read or listen to a book - many libraries have gone digital, so you don't need the physical branch to get your hands on great material.
A period of rebuilding will follow this crisis. We will need to shore up our savings accounts, develop recovery strategies for our investments and potentially find new streams of income. But as new solutions to the pandemic emerge, we will regain our financial confidence and enjoy meaningful face-to-face social connections once again.
Copyright 2020. Toronto Star Newspapers Limited. Reproduced with permission of the copyright owner. Further reproduction or distribution is prohibited without permission. All Rights Reserved.
This article was written by Lesley-Anne Scorgie Contributing from The Toronto Star and was legally licensed by AdvisorStream through the NewsCred publisher network.
