Your Finances and COVID-19

The markets are tanking, interest rates are near zero and you may wonder if you still have a job this week.

Let’s break down what you need to do now.

Stick to your plan

As hard as this is to hear amid stock market uncertainty, acting emotionally isn’t the answer. No one can time the market, whether going up or down. If you’re feeling investment anxiety, reach out to your Certified Financial Planner.

Cashflow is king

So many Canadians are living pay cheque to pay cheque and simply don’t have the emergency savings to weather even a minor financial storm. What can you do now to increase your cash flow?

  • If you have high interest rate credit cards, contact your bank to see if there’s a lower interest rate option.
  • If you don’t have a line of credit, consider setting one up (for emergencies only – not new spending).
  • If you have a mortgage, you likely have a “skip a payment” option where you can skip one payment a year without penalty. If you don’t have adequate emergency savings, this could help boost your account.
  • Don’t cash in RRSPs. This should always be a last resort. If you cash in your RRSP during your working years, you’re taxed heavily and, you lose that RRSP “room” forever.

For more info, catch my segment on BNN.

Also, my comments for Chatelaine magazine.

Our Prime Minister will be speaking today at 1pm ET about the latest support for struggling Canadians and business. Check back tomorrow for a summary of those benefits and how to access them.

Get the latest COVID-19 financial emergency updates & resources. View