Lessons Learned from COVID-19 can Help Your Personal Finances
August 13, 2020
There is a strong similarity from the lessons learned from COVID-19 and how best to manage your finances, writes Peter Watson.
Since March, we have consistently heard the same theme. Understand the illness and use that knowledge to protect yourself and others from getting sick.
Knowledge with the pandemic often comes from medical science. And we are encouraged to be receptive to additional knowledge as it becomes known.
Making informed decisions is a good idea during a pandemic and it is also good when managing your personal finances.
So, what knowledge or rules or evidence can we use when managing our money? Many things are known, and it is to everyone’s advantage to make use of that knowledge.
Everyone’s situation is different so that will dictate when and if you make use of these simple ideas.
Save a little money every month that can be used to finance longer-term in the future.
Reduce your debt. Stop working for the bank and paying them interest on loans and mortgages.
Use the generous income tax laws to your advantage. Maximize the advantages of a Registered Retirement Savings Plan and Tax-Free Savings Account.
Diversification is your friend. That is the best option to be proactive and protect yourself from normal investment risk.
Have a written plan. What are your financial goals and objectives? What do you have to do now and in the coming years to meet those goals and objectives?
Educational costs should be part of your plan. Education is expensive and for most people children enter post-secondary schools as you are continuing to pay down debt and build up funds for your retirement.
We encourage you to use what is known to inform personal decisions about managing your personal finances.
Peter Watson is registered with Aligned Capital Partners Inc. (ACPI) to provide investment advice. Investment products are provided by ACPI. ACPI is a member of the Investment Industry Regulatory Organization of Canada. The opinions expressed are those of the author and not necessarily those of ACPI. Peter Watson provides wealth management services through Watson Investments.