What You Need to Know to Take Control of Your Finances After COVID-19

We all know COVID 19 changed the world. As things begin to get back to (the new) normal, we need to know how to maintain and control our finances.

TIP #1 - Look at Your Numbers

Many Canadians have always had more than enough money to pay their bills with little need manage their money or track their spending. Then Covid-19 hit, and for many people, their income decreased. Less income mixed but the same amount of expenses can be emotionally draining and new territory for many. The first step to taking control of your finances is to look at them and understand where your money is going.

Here’s a pro tip, separate the emotion and the money. Most parents will continue to struggle because the emotions they experience looking at their bank statements dictate their actions. But that does not have to be you. After all those just numbers and we are about to show you how to get your finances back on track.

TIP #2 – List your Income, Expenses and then Keep, Decrease or Discard

Income

For Canadians who are really struggling you might need to look for new way to produce income. For some of you, working extra hours might make more sense. However, we recommend looking at how to reduce your expenses to fit your current income.

Expenses – Keep, Decrease, Discard

Look at where your money is going and ask yourself, what do I keep. The following may be things like your insurance, child’s education, groceries, and shelter. These are the non-negotiable.

Next, we want to look at items where you may be able to shop around and find better pricing. Things like you cable tv, phone bills and internet all have multiple price levels and vendors.

Some banks and credit card companies are offering payment deferral. Make sure to check with your financial institution before doing this as some companies will limit the total amount of credit you have if you choose to defer payments. Furthermore, this can create larger interest payments.

Last, find those things you can cut out. Is your gym billing you even though they are not open? You can put a stop payment that right away.

By doing this you’ll be able to take control over your finances until we get back to the new normal.

TIP #3 - Seek Professional Advice

When all else fails seek professional advice. You see, it’s okay if you don’t have all the answers. However, reaching out to someone who can help might be the best next step. Get someone that can help you understand your bills and get control of your new finances.

Any other questions? Reach out to our team over at Tip Services and one of our non-commissioned advisors will be happy to help.

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