Ouf! What an uncertain time right now! I think we are all feeling it in some way… But I am really at peace that we will come out of this stronger.
I have seen beautiful things happen in spite of current circumstances. People are really coming together to help one another and we at Money Mama are also here to help! Knowledge and flexibility to make changes to your current financial situation is within your control, and there are a lot of resources that may help you navigate these times of uncertainty in light of the COVID-19 pandemic.
The government and several organizations are coming together to help Canadians navigate this challenging time. Know that you’re not alone. These resources are designed to help empower you to take control of your financial matters for your business and personal life. We’ve rounded up a few, and anticipate there will continue to be more resources as the government and other organizations continue to provide more assistance to citizens in different ways. Here they are:
Tips for everyone:
1. Remain calm: Rarely are good decisions made when emotions take over. This is affecting us nation-wide. Keep trusting that it will all work out! We’re all human, and need support – reach out to your network and see if you can support one another. A FaceTime, or a phone call can help both you and your loved ones keep things in perspective.
2. Revisit your budget: Now is a great time to look at what is coming in and what is going out and make adjustments to your spending patterns. The advantages of staying home is that there are likely fewer expenses including commuting expenses or expenses related to eating out. Knowing that some businesses are likely closed temporarily, see if you can put memberships or payments on hold, and think about how you can use that money in other ways. Hint: put it in savings!
3. Defer or refinance your debts: Banks are now more lenient, so now is a good time to consider refinancing your debts by asking to increase your line of credit. Call your credit card company to see if payment deferral is an option, and potentially lower interest rates.
4. Pad your savings: We always hope that people have a bit of a cushion for emergencies. If you don’t, then now is the time to put aside as much as you can and be mindful of the little spending that can add up. Generally speaking, having enough in savings to cover at least 3 months worth of expenses is ideal!
5. Focus on what you can control and practice gratitude:
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Take care of yourself by eating nourishing foods, exercising and sleeping well.
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Get organized by doing things on your “to-do list” that you have been putting off for your home, your business etc.
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If you have kids with you at home and you are a single mom like me, make a schedule for your kids to follow, which would include some quiet time where you can all enjoy separately and take advantage of that time to do work. Put an automatic response to your email to let your clients know your new business hours. People are very understanding.
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Ask for what you need. If you feel stuck and don’t know how to pivot your business to make it work, ask your network for ideas. Facebook groups can be a great place to start, and of course, we are here to help too!
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Be creative and stay open. You have everything you require to make things work. Take this as a great opportunity to revamp your business!
If you’re facing financial uncertainty:
6. Talk to your mortgage lender: If you’ve been laid off, or found yourself in a position unable to pay your mortgage insured by the CMHC, talk to your mortgage lender – the government is offering flexibility for homeowners. See if you are eligible here.
7. Review your property taxes: Depending on where you live, there may be a grace period for payment of property taxes. For 60 days beginning March 16, payments due to the City of Toronto by individuals and businesses can be deferred without late payment penalties. Read more about it here.
8. Apply for government benefits: The traditional Employment Insurance (EI) waiting period has been waived. As well, for those who lose their jobs or face reduced hours because of COVID-19, and are not eligible for EI, access to the government’s Emergency Support Benefit might be of help. Self-employed individuals may also be eligible to receive EI. See if you are eligible here.
For families
9. Look into the GST Credit and Child Benefit top-up: The federal government is going to provide a one-time special payment in early May for low-to-modest income families through the Goods and Services Tax credit (an average payment of around $400 for a single individual and close to $600 for a couple has been proposed). A few more details are available here.
10. Support for cost of educational resources: The Ministry of Education is providing financial support to parents to assist with the costs of educational resources during school and child care closures as a result of Ontario’s declared emergency to stop the spread of COVID-19.
Parents are eligible for a one-time per child payment of:
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$200 for children aged 0-12, or
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$250 for children with special needs aged 0-21.
For businesses impacted by the coronavirus
11. Support for entrepreneurs: Canada’s Emergency Response Benefit Program will provide funding of $2,000 per month for up to 4 months for those affected by COVID-19 and in regards to losing jobs, contacts and their small business income. Please ensure you have an online CRA account registered to be considered. The application portal will be open starting April 6th, but the best day to apply depends on your birth month. More details can be found on the Government of Canada website.
12. Review your group benefits plans: Carriers are coming together to help as well. You may be eligible for deferring renewals and/or payment. Check with your group benefits advisor/provider for more details.
Bonus tip
Now is the time to support one another. While you’re likely being inundated with information emails from random companies, services, and businesses about COVID-19, it’s worth filtering and labeling these emails into a separate folder in your account to find out how you can support either now, and or file away to consider for collaboration opportunities!
While we know that the anxiety may take over some times, we also know that there is light at the end of the tunnel. If you need additional support on how to make things work, we are only a text or email away. Feel free to contact us at 416-882-5483 or melanie@moneymamato.com.
You’ve got this!