As we are all facing this global crisis due to COVID-19, it is very important to protect our families from the uncertainties that the future holds. We will get past this pandemic, but we do not know how long the impact of this will have on our country’s economy. Many businesses are cutting costs by laying off employees or cutting hours, please take action before you are in this situation.
Here are some financial tips to prepare us for this foreseeable recession.
1. CUT EXPENSES – Review your finances and see where you can save on monthly expenses. Review unnecessary subscriptions, memberships, phone/ cable packages, etc.
2. GOVERNMENT ASSISTANCE PROGRAMS – The Government of Canada has taken a proactive approach in helping Canadians experiencing financial hardship with numerous assistance programs. Review the government website and see if you qualify. Click here for more information.
3. CREDIT FACILITIES – If you do not have cash saved up, it may be a good idea to have credit available in case of emergencies. If you do not currently have available credit on credit cards or lines of credit, apply for one while you are still employed as you cannot apply for credit if you do not have verifiable employment.
4. UTILIZE YOUR EQUITY (HOMEOWNERS) – Another option if you do not have cash on hand and want to take advantage of lower interest rates (compared to credit cards and unsecured lines of credits), is to utilize built-up equity in your homes, either by taking out equity through a refinance or setting up a home equity line of credit. Again, it is important to review this option while you are still gainfully employed. – You can contact me for further details.
Preparation is key in these uncertain times, have cash or credit accessible in case of any emergencies.
We will all get through this! Keep safe and healthy everyone!