Managing your personal cash flow during the pandemic

Cash flow is an important indicator of your financial health. It is the money you have coming in and going out at a given time. For example, you have a cash inflow when receiving a paycheque and a cash outflow when paying a bill. An overall positive cashflow means you can pay your current living expenses and financial obligations on time as well as have money left over for savings or future expenses.

The COVID-19 pandemic has brought many financial challenges for Canadians including reduced income, job loss, lower returns from investments, and higher food and housing costs. You may have experienced irregular cash inflows or needing to borrow money to make ends meet.

Cash Flow Calculator

Use this calculator to estimate your monthly cash flow.

5 reasons to use the Cash Flow Calculator

1. Find out where your money goes

Are you a responsible spender? A savvy saver? It may be difficult to know without accurately tracking your money habits. You may also find “budget leaks”, like a subscription or membership that you no longer use but are still paying for.

2. Understand your minimum cash needs

Ensure you have sufficient funds to pay bills when needed. A missed credit card or mortgageMortgage A loan that you get to pay for a home or other property. Often the loan is for 20 years or more. You make a set number of payments for a set amount each year.+ read full definition payment could result in penalties or interest charges as well as have negative impact on your credit score.

3. Plan for different scenarios

Financial uncertainty can be stressful. Explore how different scenarios could impact your overall financial health, such as a lower-than-expected paycheque or higher food costs.

4. Use emergency funds carefully

It may be necessary to access your emergency funds until your financial situation improves. The funds should be used for essential needs and may have to last several months.

5. Save or invest for the future

Find opportunities to set money aside for an emergency fund or investing for a future goal. Remember, even small amounts add up over time.

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