Dealing with finances during COVID-19

It's been over two months since the self-isolation policies have commenced here in my city and I don't see these policies changing anytime soon.

So many families and friends have been impacted financially by this unprecedented time in our history. No one could foresee
this happening, but now that we're here, in the midst of it, how do deal with the rent or mortgage that's due, how do we deal with that credit card bill or the fact that we still need to buy gas to drive to and from work or the grocery store on a regular basis.

I have actually had a few messages and emails about this type of question from friends over the last few weeks since they know Chris and I are avid budgeters and actively try our best to plan our spending as much as possible.

Listen, even we have been affected by this, probably a little bit differently than all of you, but we are definitely thrown for a loop and are still reeling a bit from the impact on our finances.

The best advice I can offer you is to take care of your four walls first. What does that mean? What that means is as best you can with the income you do have available make sure to pay your mortgage or rent, have your utilities paid so that you still have lights and electricity for cooking and daily use available and enough money for food and gas. Those are your "four walls". If you can take care of those things, you are doing better than some people out there.

Also, now is the time to use that emergency fund, if you have one. This is an emergency! If your income is unsteady than definitely think about how to supplement that income even if you've been temporarily laid off or had your hours cut back. Also, if our government is offering money through the CERB, student program, or any other options that are available then take that money and use it wisely.

The one thing I'd caution you about any government money is you may have to one day pay that back. Be aware of that. Be aware you'll have to claim this as income on your taxes next year and if you're able to, put aside 1/4 of that "income" aside now for taxes. Governments, no matter what country, never just give out free money without expecting its citizens to pay for that money in some way down the line. Expect that, accept it, and make a good financial decision about what to do with that money with that in mind.

Chris and I are in a bit of a different position. My income is steady and never changing. Since that is the case, I don't qualify for any government help or support. Chris, on the other hand, is currently a student and was able to claim some support through their student program. We are using part of those funds to pay for some extra food and supplies we have bought in the last two months.

Since we still don't own a car, we had to buy all food and supplies through grocery delivery apps and amazon. Sometimes that means paying more than we would normally pay for things, or having to buy a few things in bulk order now and spacing those supplies out over the next coming weeks or months. This has made our current budget explode in the grocery/household line of expenses.

Thankfully it looks like July and August will be quieter months with less online shopping needed, but it took us a bit to get there. (It didn't help that we had groceries delivered to the wrong house and stolen, groceries that took four weeks to deliver, etc.)

If, after you've taken care of your "four walls" and you still have money left over, make sure to pay the minimum balances owed on other bills. Covering at least the minimum will keep companies from calling you and yes, they will still call even during the pandemic. Remember, they are a business, too and even though they're not a local mom and pop business, they require an income to keep going as well.

Sometimes, you are able to negotiate a smaller amount to pay them and you can try that and discuss it with them, but don't do ask for that kind of help after they've called and hounded you for the minimum payment. Make that call before the bill is due and ask if it's possible to pay less that month or for a few months. It doesn't hurt to ask!

The last piece of advice I'll offer to you is, if you can afford to save for an emergency fund and you don't currently have one, do it! Saving a small emergency fund (minimum $1,000) will help you in a time of crisis, like this one. Chris and I have an emergency fund but haven't needed to touch it during the pandemic. We are saving it just in case my hearing aid dies, or he needs to have an emergency dental surgery done -- something drastic, in other words.

We are keeping steady during this time and we hope you are as well. If you need any encouragement, help or prayer about your finances during the pandemic feel free to reach out and message me. I'm more than happy to sit down with you and talk, vent or even cry. This is not an easy time, but it's going to be okay -- even your financial situation will be okay again one day, I promise.