What’s My Priority? Managing Money in a Dangerous Time When You’re Going on a Trip or Planning Your Retirement

Are you wondering how to manage your finances, meet your personal goals and secure your future when you’re going on a trip or planning your retirement in light of the recent pandemic? World events that directly impact your daily life and income might make it tricky to identify the best financial path to get you to your goals.

The simple truth is that now could be the time to revisit your financial goals and make new decisions about what to prioritize right now. Use these tips to keep your financial momentum going through dark financial times.

I’m going on a trip
Priority: secure your finances

In the current environment, even local travel has ground to a halt. And if you had a dream trip planned for the next few months, chances are that it’s been cancelled or postponed. Yet eventually this will pass, and you’ll have the opportunity to take that trip you wanted.

For now, set your trip money aside in a high-interest savings account. That way it still earns interest, it’s secure, yet it’s also readily available if needed.

It’s also important to accept that you and your spouse could face unexpected costs arising from the current situation. Money earmarked for travel might be needed for other expenses. For example, university-aged children might move home when their residences close. Or perhaps your adult children will return to the nest due to pandemic-related layoffs or cutbacks.

I’m planning my retirement
Priority: don’t panic

Many experts now agree that we are on the verge of a recession. This might not be the time to make a drastic investment or portfolio change in reaction to the negative headlines. However, it is a good time to review your current investments against your financial plans and goals, which might have changed slightly due to the pandemic.

Avoid selling investments now while the markets are down. Do your best to avoid checking your accounts daily as this could lead to panic selling. it might be wiser to arrange a phone or video meeting with your financial advisor to review your portfolio asset allocation.

All Canadians

Regardless of your life stage, think about revisiting or starting your household budget to track spending and find places to save money. Make sure to include regular contributions to emergency savings.

If you’re self-employed or a business owner and your income has taken a hit due to the recently mandated restrictions and resulting economic climate, you could be eligible for the federal Canada Emergency Wage Subsidy Program announced on April 1, 2020.

The world has changed dramatically in the past few weeks. Those changes impact you directly, yet no one knows just what the post-pandemic financial landscape will look like.
So no matter which life stage you’re in, take a good look at your previous financial plan and priorities. Are they still relevant? Are they still attainable?

What is the most pressing immediate financial need that will help you weather this storm financially? Act on it today. Doing so improves your chances of coming through the storm steadily and still moving towards your own financial goals.