We at Levesque Wealth Planning are always trying to look at the bright side of life. This is so we see the upside of the glass being half full rather than a glass being half empty. The difference is perspective. Having faith that you will have enough versus feeling like you will run out.
Since COVID-19 started, every day in the news we hear that a lot of people have been living pay to pay. People are struggling to pay the rent/mortgage and the regular monthly bills. We are only into the second month of being shut down as a country. The news has been reporting almost daily that people can’t pay their bills after being laid off for only a couple of weeks. Now as we go deeper into lock down, the bills maybe mounting for some people.
So what’s the lesson here? What can we do now to make sure that we are better prepared in the future? In The 5 Minute Wealth Plan, chapter 5 is dedicated to having savings put away for any type of emergency that may come up. This money was always meant for real emergencies. This was not meant for paying your credit card bill or to buy a new vehicle because your next-door neighbour has one. The money was to be used in a real emergency like we are experiencing now.
Because life is so unpredictable we always have to be prepared. Isn’t that what they say if you’re a Boy Scout or Girl Scout? Having a reserve of 3 to 6 months was always our recommendation. Going through what we are right now, we may have to rethink the amount of money we put away and make sure that we could possibly live for one year on our savings without impacting our future retirement. This is also in chapter 2 of The 5 Minute Wealth Plan, which we talk about Budgets. The budget will help you determine how much money it would take to live for one year on just the necessities of life.
Consider renaming emergency fund to pandemic fund, COVID-19 fund, or anything else that you can think of. The point is things do happen in life. Some of these things are in our control and, like the pandemic that we are currently experiencing, some things are not in our control. But what we do know that we can control in our life is our spending and our savings. The rest is up to you to have an emergency fund and to encourage others to as well. In the end we are all in this together.
This information has been prepared by Linda J. Levesque & Daniel Fearon who are Investment Advisors for HollisWealth® and does not necessarily reflect the opinion of HollisWealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisors can open accounts only in the provinces in which they are registered. HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.
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