Hello Readers, last week I wrote about budgets and if any you attempted to undertake the exercise one would have realized it was not any easy task. Having said that it was my way of helping you to develop a relationship with money. An alternate to developing a budget and monitoring it is to, not spend more than what you make in a day. This a relatively simple exercise requiring self-control and discipline.

During these COVID-19 days it is important to maintain a good physical, mental and financial health. The former two one can use the medical facilities available to all. For your fiscal health you may choose to deal with a Financial Planner.  To have a good financial health one needs to have a good Credit score, a good saving plan, a good retirement plan, living debt free with an affordable roof over your head.

A good Credit Score is 720 plus. At this level the banks will talk to you about your need for loans or mortgage. Landlords will have no issues in renting to you. Insurance companies will give you a favourable rate on your automobile insurance. A credit score of 620 is on the low end. Look at your credit score and take all the actions to bring it up to a more desirable level

A savings plan is a must, to build up a cushion for unanticipated expenses or situations. Even if start of with a $1 daily you are on the way. Your savings should cover anywhere three to six months of spending.  These saving could be any form GICs or Mutual Funds as long as you have access to these funds in a relatively short notice. More importantly it will give you confidence as you move forward.

Retirement plan would require a lot more thought, depending upon what stage of life you are at. Look at your current spending at estimate what you will need when you retire, hopefully your house is paid of kids (if any) are settled and you are ready for the next stage of your life. This plan should looked at periodically with help of a trusted financial adviser.

Debt is a big killer even with the low interest rates, especially if it is credit card debt. Every effort should be made to reduce your debt it zero. Only good debt is a mortgage and if you have the stomach to borrow and invest. Getting out of the burden of debt will give you confidence to move forward to a more meaning full life. The interest cost of your debt is in after-tax dollars, in other words you have to earn an income pay taxes and use the money to the interest.

Get your Financial health in shape, get started today.

Rattan Gandhi is owner of Quick Refund Tax, 133 Sixth St. His opinions stem from 15 years of experience in helping clients in the tax area. If you have questions, he can be reached at 905-616-5253 or rattangandhi@gmail.com.