COVID-19 is changing the social, as well as the financial, structure of the entire world. 

A recent study reveals that nearly two-thirds of Canadians are stressed about their finances, with over 30% experiencing extreme stress.  Roughly one-third of Canadians are struggling to pay their regular monthly bills and don’t have the funds to pay for an emergency should they have one. 

The current crisis raises two simple yet critical questions: 

Are Canadians financially secure and do they feel financially well? 

Most people may find it difficult to differentiate between financial wellness and financial security, so let’s see how they differ.  

Financial security means having enough money to pay for your lifestyle. Financial wellness is all about how you feel about your finances.  Are you on track to meet your financial goals, are you doing the right things to have financial security?     

Now that you understand financial wellness and its critical components, it’s time to take action.  

Here are five practical tips that will help get you started right away. 

1. It’s time to stop impulse buying. Every time you desperately want to buy something, take 24 hours to think about it. Is it really going to make a difference in your life? The chances are that your desperation will go away. Give yourself a money target. If your target is $100, think long and hard on whether you want to spent that $100.  How many hours do you need to work to purchase that item? 

2. Practice the rule of 21. It takes 21 days to learn a habit. Start by saving $5 every day and do so for the next 21 days. Once it becomes your second nature, keep saving and don’t stop. Use it for long-term financial goals.  

3. Practice the rule of 21. It takes 21 days to learn a habit. Start by saving $5 every day and do so for the next 21 days. Once it becomes your second nature, keep saving and don’t stop. Use it for long-term financial goals.   

4. Practice the rule of 21. It takes 21 days to learn a habit. Start by saving $5 every day and do so for the next 21 days. Once it becomes your second nature, keep saving and don’t stop. Use it for long-term financial goals.

    

5. If you can’t pay for it in cash, don’t buy it. Make sure that you aren’t taking on debt for any purchases. Pay yourself first, buy on sale and save.  Cash is king!