Manage your money through COVID-19
Tips for financial health - how to tips get back on track during a pandemic

It's been a challenging year

As the world experienced a major pandemic the term "normal" got a new meaning:
  • We’re wearing masks.
  • We’re distributing vaccines.
  • We’re evaluating life choices.
  • We’re taking extra care with financial planning. Keep in mind, your financial health is something that's entirely under your control.
Here are some tips on how to manage your money.



1.Create a Budget

One of the most important things is to understand your income and expenses:

• Review your last three months of spending. View your debit and credit card purchases.
• What do you need vs what do you want? Make sure you can cover your needs.

Use this information to create a budget. You can adjust your spending where you see fit.

It’s difficult to predict what the future holds. Be proactive. Think about possible outcomes and plan your budget accordingly.

Ask yourself these questions:

  • Do you have any debt (i.e., car payments) to take care of?
  • Do you have any immediate financial needs?
  • Do you have "rainy day" savings you can access? (Check out our savings calculator to see how much you can save over time.)
  • Are there any frivolous expenses in your day/week/month that you can reduce?
  • Are your investments growing steadily?
  • Can you temporarily buy cheaper brands at the grocery store?
  • Do you have a steady source of income?

Use your answers to create a budget that can keep you afloat. Be prepared for the worst-case scenario while hoping for the best.



2. Keep your Debt Low

Avoid adding new debt during uncertain times. Renovating the bathroom can wait.

Call your bank and negotiate a better rate on your current loans including your mortgage and credit cards.

You could also consolidate your debt. Adding your credit card balance, that typically has a higher interest rate, to a lower rate loan could save you thousands.



You can save over $1,000 having a loan vs a credit card


3. Maintain a Good Credit Score

Credit cards can be a blessing or a curse. They’re great for rewards points and emergencies; but, make sure you pay them off entirely before the due date.

If you can’t pay off the entire balance, at least pay the minimum amount. Credit card debt can creep up on you quickly. Stop it from snowballing into substantial debt.

Paying off your credit card also helps improve your credit score. Improving your credit score tells your lender you're trustworthy and pay what you owe on time. You’ll get better loans in the future!



4. Talk to your Advisors

Financial management can seem scary, but never be afraid to ask for help. A consumer or wealth advisor can:
  • review your current situation and give you solid advice, and
  • negotiate with a bank on your behalf to reduce a loan interest rate.
Tax is one of the most complicated of all financial management sectors. If you have a complex tax situation, seek an accountant or a lawyer to help.

Insurance is a necessary safety net to have right now. You don’t want to be caught off-guard and have to shell out more money in an emergency. Speak to an insurance advisor about which type of coverage is right for you.



When things turn around…

As your finances improve, dedicate some of your money towards an emergency fund. It can just be a savings account safe from market volatility.

Save at least 3-4 months of your monthly income. You’ll have immediate cash should you need it.

A nice starting point is eliminating bank fees. Banks charge as much as $30/month. Find a No-Fee Bank Account that is free and offers unlimited transactions. Your savings can go into your emergency fund.



Health & wealth go hand-in-hand

If you aren't feeling well, you call your doctor. The same works for your finances.

Please reach out to us for help through these challenging times. Call 1.866.446.7001 to book an appointment.



More reasons to bank with us

Apply Now