Like many, I felt an overwhelming sense of helplessness the first few weeks that the coronavirus started to hit us hard in Canada. I was getting information from a friend in Hong Kong and another in Spain as they were experiencing this phenomenon first hand before it reached our continent. It feels more real when you hear it from a friend than merely getting the information from the news channel. Yet I didn’t want to think that what happened over there could happen to us in Canada. Unfortunately, we are not immune to the rest of the world.
As a Money Coach, I would like to be able to reassure you that we are all going to be okay financially once our lives go back to normal. However, that could take a while. According to Bill Gates, in the best-case scenario, it would take about 12 to 18 months for a vaccine to be developed and distributed across the globe. And our Prime Minister has said that we will be back to normal only when we have a vaccine. What do you do with your finances in the meantime?
I understand the financial concern you may be going through. Financial Net worth has dwindled for many and over a million jobs were lost in March. You have reasons to be concerned. The government is providing a number of supports for individuals and businesses impacted by Covid-19. You can and should apply for any of these financial aids if you qualify for it. The money has already started rolling in.
That being said, this is not the time to be complacent and hope for the government to bail us out. This is the time to take a good look at how we spend our money. As a Money Coach, I am often asked questions on how best to invest, and I always first ask how much money you can save to invest. There is no investment if you are spending more than you make.
In these challenging times, it would be irresponsible not to be cautious with your spending. I suggest you have a hard look at your spending and cut down anything that you do not need during these times. We do not know how long this crisis will last and it is prudent to be disciplined in the use of our financial resources.
So, “how much is Covid-19 costing you?”: if you have already set yourself up for financial success, then there is nothing to worry about. If not, then I encourage you to reevaluate your financial plan so that you are ready for the next financial crisis. Of course, I would be happy to help you or someone you know with that.