Financial stress is hard to handle even at the best of times. Being a caretaker for someone depending on you raises the stress to a whole new level. Guirlene, a financial expert, shares tips with our reader Teresa on how to navigate it with ease.
The question
The answer
Good day Teresa,
I’m truly sorry to hear about the challenges you’re facing with your dad’s health and the resulting strain on your finances. Your income has taken a hit given the reduced hours to work, combined with inflation and increased expenses from having an additional person in the household, it’s no wonder you’re feeling the pinch. It is a lot to handle, but you’re not alone. I am here to help. Let’s explore some strategies to alleviate the financial stress you’re experiencing.
Track your money for empowered decision-making
We can first start with a deep delve into your current financial situation. It is strongly recommended to keep a detailed record of your financial inflows and outflows. This record can provide invaluable insights into where your money is going and help you identify areas where you can adjust. Start by tracking all sources of income and meticulously document your expenses, categorizing them into essential and discretionary. It is also very important to keep track of your bill payments and pay bills on time to avoid unnecessary penalty charges. This money management log helps you make informed spending decisions, aligning with your current personal finance needs and goals.
Seek personalized advice and educate yourself
It is good that you have reached out for financial advice. However, without knowing more details about your current situation, my advice may be limited in its effectiveness and relevance. I strongly urge you to sit down and consult with a financial professional who can provide tailored solutions aligned with your goals and situation.
In the meantime, it is very important to lift your financial confidence. While caregiving, seek resources teaching everyday financial terms to deepen insights for improving finances.
Set your financial goals and plans
Setting clear financial goals and financial plans can provide a sense of direction and empowerment. You can begin by identifying both short-term and long-term objectives that align with your current circumstances and future aspirations. Be specific, measurable, and realistic in your goal-setting process, and regularly review and adjust your goals as needed to maintain financial health. An example can be reducing expenses and increasing income by a certain percentage. There are endless possible ways that your money can be saved, such as spending money wisely to stretch your income.
Furthermore, you can talk to a financial planner about how to better achieve your goals. Start your financial planning today and practice it over time.
Explore opportunities to ease financial stress
Considering your current financial challenges, exploring opportunities to supplement your income could provide much-needed relief for your financial wellness. Consider flexible or remote opportunities that can accommodate your caregiving responsibilities. Additionally, think creatively about ways to monetize your hobbies or passions to diversify your income sources. The labour market is now constantly changing, and you need to stay updated. The Canadian government provides many benefits, which may ease your financial strain.
Seek for financial support
Explore grants, loans, and assistance programs for caregivers or those facing financial strain due to health issues. Look into community resources, government aid, and crowdfunding platforms for support. In particular, check out the EI caregiving benefits.
Minimize unnecessary costs
Keep a close eye on your credit card usage, balance, and debt. Regularly monitor statements to track spending and avoid accumulating unnecessary debt. Prioritize paying down credit card balances to reduce interest charges and explore options like balance transfers for managing credit card debt effectively. Keep in mind that your credit score is an important factor that can impact future borrowings and insurance premium rates. It can be negatively influenced by late credit card payments.
In addition, you should stay informed about the Bank of Canada interest rate as the changes in interest rates can affect the rates you pay on mortgages, loans, and credit cards. Check out supermarket fliers and other discount offers regularly to save on groceries and everyday necessities. By looking for deals and comparing different providers and their offerings, you may discover more affordable options that provide the same level of service for your ongoing fixed expenses on insurance, cell phone plans, utilities, and other services. Periodically reviewing and checking with the providers can ensure that you are not overpaying.
Prepare for the unexpected
Unexpected situations might arise at any moment. Save money regularly to create an emergency fund. This money saved on grocery shopping and your ongoing fixed expenses can be kept in liquid investments and withdrawn when needed. Liquid investments should yield a higher return than simply keeping your money in the savings account. Ensure enough financial support by getting the necessary insurance needed to get through unexpected situations. Being properly insured helps to maintain your financial wellness.
Care for yourself, financially, physically, and mentally
Caring for another person while striving for financial wellness can be exhausting. So, do not forget to take care of yourself, too. Go for activities that allow you to break away from your daily life occasionally to reduce stress. Whether it’s practicing mindfulness, exercising regularly, talking to friends, or simply taking breaks to relax, investing in your mental health and physical health will ultimately enable you to provide better care for your father and sustain your efforts toward financial stability. Remember, prioritizing your mental and physical well-being, including financial stress is not selfish, it’s a must.
While the challenges you face may seem daunting, remember that you’re not alone in this journey. Financial experts, friends and family are always here to support you when you need them.
Thanks for submitting your question!
Consolidated Credit’s executive director, Jeff Schwartz will review it and give his response here, along with any additional tips that our credit counsellors have to offer. If you need immediate assistance, please call us and a credit counsellor will get you the help you need.
Please note: We try to answer all questions within 48 hours. However, not all questions may be answered on the website. If your question is similar to one we’ve already answered, we’ll direct you to the appropriate response via email. If we need more information, we’ll contact you at the email provided.