credit counselling society presents managing your finances … · 2020. 5. 7. · credit...
TRANSCRIPT
Credit Counselling SocietyPresents
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We Help. We Educate. We Give Hope.
Managing Your Finances During the Pandemic and Afterwards
We Help. We Educate. We Give Hope.
1. Unemployment / Underemployment
2. Excessive use of Credit or Using Credit for Living Expenses
3. Injury / Illness
4. No Budget / Lack of Financial Education
5. Separation / Divorce and Family Expenses
6. Failed Business/Used Credit for Business Expenses
7. High Housing Costs
Top Reasons We See for Financial Trouble
Objectives
By the end of the session, you will be able to:
•Describe 2 ways to increase income
•List 2 ways to reduce expenses
•Create a course of action to move forward in face of reduced income
Agenda
o Dealing with reduced income
o Manage income
o Reduce expenses
o Manage impulse spending
o Manage credit
o Manage debt
Focus on What is in Your Control
•Your feelings
•Your behaviours
•Your spending
•Resources you access
Our Emotions
Some feelings you may be experiencing during this time:
• Stress, worry and/or anxiety
• Anger and resentment
• Depression
Remember To
•Apply for Employment Insurance immediately
•Apply for CERB
•Service Canada offices currently closed
• If you’re self-employed, go to bdc.ca
•Deal with your finances
5 Steps for Dealing with Reduced Income
•Find income
•Reduce expenses
•Manage impulse spending
•Manage credit
•Deal with debts immediately
01
Your Income
Step 1
Possible Sources of Income
•Employment Insurance
•CERB
•Emergency funds
• Investments (TFSA & RRSP’s)
•Pensions
• Increasing income
Income Protection
• Apply for Employment Insurance immediately to safeguard some income
• If EI is not available to you, consider provincial social assistance
• If you’re self-employed, go to www.bdc.ca
Other Options
• Your emergency savings (this is what it’s for!)
• Family & friends
• Retirement savings
o Remember: there are tax implications so choose this option carefully
Increasing Income
Find ways to increase your income – it’s temporary!
• Part-time work
• Temporary work
• Start a business
• Sell items on-line
02
Your Expenses
Step 2
Dealing with Reduced Income
•Budget, Budget, Budget
•Track your expenses to find out where your money is really going
•Cut your expenses NOW
What is a Budget?
• A written spending plan – spending now and saving to spend later
• It’s based on our own choices and priorities
A Budget Includes:
• Our take-home (net) pay
• Our monthly living expenses
• Money to be put aside for
• Irregular expenses
• Emergency expenses
• Savings goals
Expense Tracking
How is tracking your spending going to help you?
Expense Tracking
•Tracking makes a budget work!
• It tells us the truth
• It shows our habits
• It shows where we can make changes
• It gets us in control
Ways to Track Expenses
•Pencil & paper
•CCS tracking booklet
•Spreadsheet or other software
•Envelopes for receipts
•Smartphone app
o Start with a few categories
•Find the system that works for you!
Dealing with Reduced Income
• Identify specific areas to target
•Your tracking will show you where to start
•Give everything consideration
•Small changes add up
o $5 a day (coffee anyone?) = $1825 a year.
Housing
•Can you chat with your bank or landlord if you’re temporarily out of work?
•Could you get a roommate, tenant or student?
•Skip a Payment Calculator
Renter Information
Province Evictions Rent Support Rent Increases Pay April Rent Other Support
BC
Halted new and active evictions,
except for exceptional
circumstances
Temporary rent supplement of up to
$500/month Frozen
Yes: applications for rent subsidy
available mid-April
BC Emergency Benefit for
Workers
AB
Suspended for missed
payments before May 1st N/A
Frozen while State of Emergency
in effect
Yes: late fees can't be applied or
collected retroactively until June 30th
Emergency Isolation Support
SK
Non-urgent evictions
suspended as of Mar. 26th N/A N/A
Yes: Tenants who can't pay are
expected to pay in full once the
emergency is overSelf-Isolation
Support Program
MB
Non-Urgent Evictions
suspended until May 31st N/A
Suspended April 1st ro May 31st
Yes: Maximum late fee of $100
Residential Tenancies Branch
ON
No new eviction orders will be
issued until further notice.
Current eviction orders postponed. N/A N/A
Yes: landlord can collect compensation for each day;
Eviction is not enforced Ontario Works
Transportation
•This is a quick win if you’re stuck at home during the Covid-19 outbreak
•Avoid all public transportation
Food
•Create weekly meal plans
•Use up your pantry & freezer
•Bulk buys
Combining Savings
•Shop on discount days
•Price matching, rebates and coupons
•Look for sales
o Avg consumer can save 20%-25%, that equals 3 months of free food!
Eating Out
•Cut this one out immediately to get some budgetary relief
Utilities
• If you’re having difficulty paying your utility bill, contact the company
•Many companies are making special provisions for Covid-19
Entertainment
• Consider 1 streaming service instead of multiple
•Never forget the value of a good book
• Walks outside are still free
03
Manage Impulse Spending
Step 3
Why Do We Spend Impulsively?
• We spend money impulsively because:
o It makes us feel better (temporarily)
o We’re not paying attention
o We want to keep up with the Jones’
TEMPO
• Be aware of your triggers:
o Time
o Environment
o Mood
o Place
o Occasion
Time
•You now have access to A LOT of time
•Watch how you spend your time (i.e. not shopping)
Environment
• Is your home environment driving you to spend?
• Is there anything you can do in your environment to give you a sense of calm?
Mood
•Does this outbreak bring out your stress, anxiety, loneliness?
•How can you process these feelings without spending?
Place
• Is your place (and the people in it) making you itchy, like you have cabin fever?
•What can you do in your physical place to limit your spending?
Occasion
•Does this outbreak make you want to throw out your budget and comfort yourself with a purchase or two?
•Remember that this will pass.
You had a bad day because
of a bad sleepYour work didn’t get done which
makes you stressed
You go shopping to feel better
You spend impulsively
You feel guilty for
overspending & put yourself on
a debt diet
You’re worried about money & can’t sleep
Impulse Spending Cycle
TEMPO Action PlanPossible Triggers I tend to spend
impulsively when…Instead I can…
Time I’m tired, right after work. Go grocery shopping in the evening or weekend.
Environment It’s spring and everythingis turning green.
Save money separately for home & garden and shop seasonally.
Mood I’m bored. Go for a walk, bake, read a book.
Place I love the hardware store and the deals always get me.
Avoid going to the store or leave my credit card at home.
Occasion It’s Christmas! Make a list; shop year round; ask for help.
04
Manage Your Credit
Step 4
Don’t Add to Your Debt
•Stop using credit – use cash/debit!
OriginalBalance
InterestRate
MonthlyPayment
Time toPay Debt
InterestPaid
TotalRepaid
$3,000 19.9% $60 (2%)52 years
7 months$12,709 $15,709
$3,000 19.9%$60 + $40
($100)3.5 years $1,184 $4,184
Using Credit Cards Wisely
05
Deal With Your Debt
Step 5
Dealing with Debt
• If you’re worried about making payments on your products, call your creditors immediately
•You may be able to skip a payment, have your interest reduced or have access to another solution
• It’s easier to take steps when your finances are not in a crisis
Dealing with Debt
• If you’re worried about making payments on your products, call your creditors immediately
• It’s easier to take steps when your finances are not in a crisis
Protecting Ourselves & Each Other
•Your & your family’s health is the most important thing to focus on right now
•Call your creditors NOW if you’re worried
•Apply for Employment Insurance NOW if your income has been impacted
•Reach out to each other (virtually)
Conclusion
Now you are able to:
•Describe 2 ways to increase income
•List 2 ways to reduce expenses
•Create a course of action to move forward in face of reduced income
Money Tips
•Look at current spending habits and identify where you can make changes
•Create a realistic budget
•Get information, options, and help sooner rather than later
•Put your plan into place and stay positive – the benefits will outweigh the costs!
•Free tools and resources available at: www.mymoneycoach.ca
ADDITIONALRESOURCES
Some helpful resources for you
to get started
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nomoredebts.org
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https://www.nomoredebts.org/coronavirus
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