“If nearly 40 per cent of Canadians under the age of 55 lost their jobs because of the coronavirus pandemic, they would have one week or less of savings to cover costs like food and rent.”
The article goes on to outline tapping into RRSPs and TFSA’s BEFORE getting on a budget, deferring mortgage payments (it suggests doing this before suggesting a “...temporary job? Side hustle?”), talking to an INSOLVENCY TRUSTEE (I’m not making this up, I’ll link the article) and then finally perhaps taking out a payday loan.
Ok. Wow.
An observation:
-the people who told me they were going to put their credit card in a “special place”, - something rather than cutting it up, paying it off and closing the account - have borrowed money and have or had a credit card balance. The people who cut their card up, paid it off and closed the account don’t.
This time of isolation can be a blessing;
-We have more time to budget.
-We have time to review past banking statements.
-We have time to read or listen to Financial Peace, The Total Money Makeover, The Dave Ramsey Show podcast.
-We have time to sit down with our partners, pray and get on a written zero based budget.
Christina and I have been “living light” for eight months now - we live on about 18% of our take home income. As a coincidence, we live multi-generationally, by choice. We can’t begin to list the advantages of our lifestyle - living with HJ’s grandparents has been an incredible gift to HJ and ourselves.
As for our old place, we don’t miss the space (ok, Tina does a bit), we don’t miss the extra cleaning, we don’t miss the utility bills - there’s a simplicity in saying “no” and being content.
You may not be able to fix some of the financial issues you’re facing as COVID-19 continues.
But you can get on a written budget, cut up your credit cards and make all the moves now so that the next time it rains, you’re going to have an umbrella.
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