July 28th 2020 - written by Amanda Huinink
Which spending category do you find yourself in? Are you taking this time to save and focus on watching your spending habits or are you filling your online shopping cart with unnecessary items just for something to do?
Many people have been financially impacted by COVID-19, but not all in the same way. There are people who have lost their jobs and were/are collecting CERB while others are able to continue working either from home or at their workplace. Either way, your financial plan has most likely changed and this is a great time to update your budget. Consider what monthly costs can be reduced, what your new monthly income looks like and watch your spending habits.
For the lucky ones with uninterrupted employment, you may be enjoying a reduction or complete elimination of commuting costs, your children may no longer be in daycare also reducing those expenses and by eating most meals at home you aren’t spending money on coffee and lunches out. This is a great time to put these unexpected savings towards paying down debt or into a savings account.
If you have experienced reduced hours at work or have lost your job, it is a good time to sit down and find the items in your life that can be reduced or removed. Suggestions include cancelling gym memberships or TV subscriptions that may be adding up each month and meal planning to watch your grocery bills. Avoid “survival mode” spending where you stock up on items you do not need (at least not a six month supply of), or even selling/getting rid of a vehicle if possible are only a few of the many ways you can streamline your spending.
No matter which spending category best describes you, increases and reductions in areas of grocery bills, monthly membership fees, socializing, daycare and commuting costs likely apply to you. Take this time to focus on saving money where you can, pay down debt and avoid any unnecessary online shopping.
We are here to provide our members with whatever financial assistance they need. Speak with a certified financial planner to create new financial goals or revise your budget. Whether you wan to consolidate debt or better manage your monthly payments – we are here for you.