Your deconfinement budget
Summer 2020: the deconfinement is continuing and things are slowly returning to normal, with a few exceptions. Your courses are over if you’re still a student, or you’re graduating this year and fully entering your profession in the coming weeks or months.
With the pandemic, financial worries also appeared, then government measures. You may be receiving the CESB or, if you had started working full time, the CERB. These measures have greatly alleviated concerns about job loss or a shortage of summer jobs. The recent eight-week extension of the CERB will give a much-appreciated respite to all those who are counting on this benefit to make it through the coming months.
Something to think about!
At best, you have reduced certain expenses (travel, car, outings, restaurants), and you have increased others (telecommunications costs, delivery costs).
Don’t forget that:
- The CESB and the CERB are taxable benefits, so you will have to declare them on your 2020 income tax return. April 30, 2021 is still a long way off, but take this reality into account in your financial projections.
- If you find a job or return to work, be mindful of when you start your job if you are receiving the CESB or the CERB. Depending on the period for which you claimed the benefit and the date of your return to work, you may have to repay amounts to the government. In this case, try to come to an arrangement with your employer to postpone your return date or work fewer hours per week during the period concerned.
- Finally, if you have not already done so, consider establishing a financial reserve. In financial planning, you will be told that this reserve should be equal to three months of income. If you are in school, the situation is different. But if there’s one lesson that the pandemic has taught us, it’s that we can’t predict the future. And that an amount set aside in an investment account can prove very useful in the short term.
Let’s talk about it
If your budget is stressing you and you don’t know which way to turn, talk to an advisor at the Financial. With sound advice and an attentive ear, we can help you quickly get back on your feet and regain confidence in your future.
If you have any questions regarding your portfolio, feel free to contact your advisor. He remains your best resource for achieving your life plan and is easily accessible.
Alexandre Hunault, LL. M. Fisc.
The information contained herein has been obtained from sources deemed reliable, but we do not guarantee the accuracy of this information, and it may be incomplete. The opinions expressed are based upon our analysis and interpretation of this information and are not to be construed as a recommendation. For any questions, don’t hesitate to contact your wealth management advisor or your tax specialist, accountant or legal advisor.