Financial Well-being During Covid-19

Author: Jesse Richards

Financial well-being is not just living on a budget, it’s about being prepared for the situations that can and will arise throughout our lives. In most instances, extraordinary expenses occur suddenly, such as loss of employment, home repairs, or vehicle repairs. Other situation can be foreseen and planed for, like retirement. How do we effectively provide for these situations so we can weather the storms of life?


A budget is a tool to understand the income and expenses in one’s life and to help an individual make choices regarding the use of their resources. During times of financial stress, such as the current COVID-19 pandemic, it is important to understand where you are financially. Our individual budgets have all changed, but not for the same reasons. These changes may have had a positive or negative effect on your financial position. For example, being able to work from home would have a positive financial effect. Your income is still the same, but not having to pay for fuel to commute, parking, fast food lunches, and your daily Starbucks results in saved money. So, what do you do with the extra money? What if the effects of the pandemic is negative? What can you do if there is a shortage in income?

Saying ‘no’ to large expenditures tends to be easier than the small ones. Small expenses can easily nickel and dime you out of a couple hundred dollars a month if you are not careful. A good starting point to reducing expenses is to ask, “What small, regular purchases do I make which I can do without?” From a day-to-day standpoint it may seem immaterial, however, it will make a significant difference over time.

Saving a few hundred dollars may not be enough. Fortunately, many credit and financing institutions have COVID relief policies now in place. Credit card companies are allowing payment deferrals or temporary interest relief. You would have to contact your company directly to see what they are offering. Deferred payments are also available for mortgages. Make sure to ask about the post COVID payment terms, so you can prepare.

Consumer proposals or consolidations are another option. It can greatly reduce your monthly expenses. This is not to be taken lightly, entering a consumer proposal can drastically impact your credit rating.

Financial Well-being During Covid-19 3

What if the COVID lockdown has had a positive impact? Paying off credit cards and maintaining a zero monthly balance or topping up retirement or education funds, are wise decisions. Many mortgages have extra payment policies. You may be able to make double payments or a one-time annual lump sum payment. Though this may not make a noticeable change in the principle amount owing, it can save you much more in future interest payments and shorten the time paying off your home.

Regardless of how COVID-19 has affected you, it is wise to have an emergency fund. This can be accomplished by simply putting a few dollars in a jar each time you are paid. A goal to reach is to have at least one-month expenses set aside. Then as need arises you can draw from the fund instead of going into debt for the unforeseen expenses.

Financial well-being comes bit by bit, not by windfalls.

Share this

Take the first step:

Let’s talk about you.

We offer no obligation, free 1hr consultations to people like you. Let’s talk about your situation. Really. 

Stay Connected

Recent Posts

Can You Refuse Mediation in a Divorce

Can You Refuse Mediation in a Divorce?

In Calgary, neither party is forced to participate in or continue with family mediation if they don’t want to. However, separating couples are encouraged to settle their disputes out of court whenever possible. This approach can save time, reduce stress, and often lead to more amicable solutions. What is Mediation in Divorce? Mediation is a

Read More »
How to protect yourself financially in a divorce

How to protect yourself financially in a divorce?

Divorce can be an emotional rollercoaster, but your finances don’t have to suffer. Protecting yourself financially during this challenging time is crucial for securing your future. Whether you’re facing a separation or a full divorce in Calgary, these essential tips will help you navigate the financial complexities and come out stronger on the other side.

Read More »
What Am I Entitled to in a Divorce in Alberta

What Am I Entitled to in a Divorce in Alberta?

When you go through a divorce in Alberta, you are entitled to an equitable division of marital assets and liabilities. This means the assets accrued during the marriage are divided fairly between spouses, though not always equally. It also includes considerations for spousal support, depending on the length of the marriage, each spouse’s income, and

Read More »