For many people, this spring has presented a financial challenge they simply weren’t prepared for. As businesses reeled from the global shutdown, layoffs followed, leaving many grasping for a lifeline.
But what if you had an emergency fund, established for just such a situation – a little predictability when the unpredictable happens?
In fact, only about one-quarter of Canadians have funds set aside for an emergency; of those aged 18 to 34, one-third have no savings at all.
So as the world starts to regain some sense of normalcy, maybe it’s time to start thinking about preparing for that next emergency, whether that’s an unexpected hot water tank replacement or job loss.
Getting started on saving
How much should you save? The answer to that largely depends on your income and expenses, but a good starting point is $1,000, with the goal of eventually saving three to six months of expenses you can draw on in case of unexpected car repairs, illness or income change, for example.
But how do you go from living paycheque-to-paycheque to those kinds of savings?
- Find small daily savings – Cut back on few indulgences, like that extra latte or one of your entertainment streaming services. Individually, it’s only a few dollars, but collectively it all adds up – diverting just a little to your emergency fund will get you started.
- Find savings in your regular expenses – Can you get a better deal on that phone plan? Maybe change financial institutions to lower bank fees? Reduce costs on your car or home insurance?
- Plan ahead – Everyone’s busy and sometimes eating on the run is all you have the time or energy for. But a little pre-planning can really help boost your bank account. If you normally eat out each workday, try bringing your lunch three days – you’ll suddenly save $30 or more a week, or $120 a month!
Starting fresh if you owe
As you head back to work, paying debts incurred this spring may be first on your to-do list. A short-term option like an online payday loan from MyCanadaPayday.com is both simple and secure.
“As Canada’s fully licensed, online payday loan specialists, we’re here to help you take care of these unexpected bills and expenses,” says Sundeep Thind, manager of MyCanadaPayday’s Surrey office. “With the entire process easy and online, you simply need to fill out our one-page form and our experienced team will get you on the road to financial recovery in no time.”