EP135 How to Evaluate Your Financial Situation and Plan for Cash Control
As we continue to face these unprecedented times with the spread of COVID-19, it’s natural to feel sad, worried, and anxious about what each new day will bring and what your future will hold once the pandemic is over. Whether you’re a student with seminars or classes suddenly cancelled, or a business owner who has been told to close your doors for the foreseeable future, these are uncertain times for everyone. And while we know this won’t last forever, the initial shock of our short-term reality is starting to wear off and we’re beginning to settle into our ‘new norm.’ Everyone’s financial situations are different, so it is vital to take stock of where you are and make adjustments where needed to remain financially fit.
Today, I share how to evaluate your financial situation and plan for cash control. I share the steps you need to take to evaluate your current financial situation and how to use your numbers to calculate your cash surplus or deficit. I reveal the ways that you can increase the inflow of your finances and the options that may be available to reduce your outflows, such as deferrals, cancellations, and interest rate reductions. I also share where you can find and apply for financial assistance packages from the government.
“It is really important to focus on the reality and not worry about what might be the worst-case scenario.” – Tracey Bissett
This Week on Young Money:
- Assessing your financial inflows from part-time or full-time employment and adjusting your expectations to account for wage fluctuations
- Assessing your financial outflows including accommodation costs, utilities, loans, insurance, cell phones, and groceries
- How to double-check your outflows using your online bank and credit card statements
- How to reduce your financial outflows during a prolonged period at home
- How to calculate your numbers to determine your cash shortfall or surplus
- Finding income opportunities to boost your cash flow
- Where to apply for government instituted assistance packages
- The financial outflows that may be eligible for deferral
Four steps to evaluate your financial situation:
- Inflows: How much money is coming in
- Outflows: How much money is going out
- Put it all together
- Make a plan for cash control
Resources Mentioned:
- EP057 Bankruptcy and Consumer Proposals 101 with Doug Hoyes
- EP069 How to be Financially Resilient with Jackie Porter
- EP081 Credit Canada Debt Solutions with Laurie Campbell
- EP128 Adulting 101: How to Get Out of Debt – No Matter What Got You Into It
- EP133 How to be Financially Fit During A Global Pandemic
- Canadian Government Financial Assistance
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