Setting Financial Goals is key
Financial Planners encourage clients to continuously set goals and build a plan to attain their goals. “The Financial Plan” among many aspects, should consider investment market shock and the impact on their goals.
The reality is that many Canadians have not taken the time to work with their financial planners. As a result, many Canadians find themselves in a difficult financial situation with the economic fall-out of the COVID-19 pandemic crisis. Immediate steps can be taken to address the current financial distress and once the crisis abates, a formal goal setting financial plan should be established.
5 Financial Planning Tips to Help you Survive COVID-19
Here’s what you should be doing now if you do not currently have a financial plan.
1. Be up to date with the developments and financial support programs
Use reliable social media and traditional news media to stay up to date with all the developments. Be informed of the health directives that all levels of government are communicating to combat the COVID-19 pandemic. Government websites explain financial support programs to help individuals and businesses during this crisis.
2. Step away from the information
Never decide when you are stressed about your current situation. Step away from all the noise in order to properly digest the information and make an informed decision. Focus on what you can control, rather than on what is not possible to achieve right now. Make sure you are preparing healthy food, getting exercise outside, and communicating with the family.
3. Build an emergency budget
Reduce your level of spending immediately in relation to your deceased level of income. Focus on food, shelter, medical, and transportation. The emergency budget and reduction in nonessential expenses should be part of a family discussion as it will require a commitment from everyone.
4. Stay in contact with your creditors and landlord
Make sure you open the lines of communication with your creditors and landlord. Canada’s major banks have said they will review requests for assistance on a case by case basis. Contact your creditors before you start to get behind on payments as they will be in a better position to help you. Landlords are also willing to work with you in establishing reasonable payment terms.
5. Commit to planning for the future after the COVID-19 crisis finishes
The next step is to develop a robust integrated financial plan tailored to your personal goals. Your Financial Planner will work with you to develop a plan that will help you to enjoy your life instead of worrying about what comes next.