The COVID-19 pandemic has been a difficult time for many people. Many Canadians lost their jobs, had to take on reduced hours, and could not find new jobs. The pandemic has taken an enormous toll on many of our finances.  

With no job and no money coming in, many Canadians relied on government-funded programs such as a Canada Recovery Benefit to help them through the tough times.  

What is Canada Recovery Benefit (CRB)? 

The Canada Recovery Benefit (CRB), administered by the Canada Revenue Agency (CRA), gave income support to employed and self-employed individuals who are directly affected by COVID-19 and are not entitled to Employment Insurance (EI) benefits. 

Depending on when you started applying for the CRB, you either received $1,000 ($900 after taxes withheld) or $600 ($540 after taxes withheld) for two weeks. If your situation continues, you may have been able to apply again for CRB. 

While many Canadians were lucky to rely on programs like CRB, it was often not enough to cover the basics of food and shelter.  Learning to live on a fixed income, like CRB, can be tricky, even if it might be for a short time. 

Four lessons Learned from Living on a Fixed Income with CRB.

While CRB has ended, there were many money lessons from living on a fixed income with CRB. 

Take a hard look at the expenses.  

It can be challenging to live on a reduced or fixed income, with the ever-rising costs of food and rent.

If you’re living on a fixed income, like CRB, it is important to examine your expenses. Make a list of all your expenses. 

During the pandemic, our lifestyles changed drastically. With no indoor dining and restrictions on social gatherings, it was easy to save money in some areas. However, spending more time at home meant that other expenses, like groceries and utilities, may have increased. 

Honestly, evaluating your list of expenses is necessary. While it is nice to treat yourself now and then, living on a reduced income can show how quickly little expenses can add up. 

Your list of expenses can help identify the necessary things and those you can live without, at least in the short term. 

Give every dollar a job  

With limited income, every dollar becomes increasingly essential. It is vital to get the best bang for each buck. 

With your list of expenses and the amount of income you know you have coming in, come up with a realistic way to assign each dollar a job – whether rent, groceries, utilities, internet, or other. 

A written budget can help you ensure that you put your money to the best use. 

Debt can spiral out of control.

Debt is scary! It often starts with one missed payment or only paying your minimum monthly payments on your credit card. Missing or incomplete payments can quickly add up and take on a life of their own. 

If you suspect your debt has become unhealthy, seek out resources to help you. This debt calculator can help you to evaluate and give you options to manage your debt. 

It is okay to ask for help.

While it can be difficult to ask friends and family for help, know that there are plenty of other resources out there. These can range from free resources from reputable organizations to professionals who can help you with solutions to address your financial situation. 

If you’re looking to tackle your debt, a debt expert can help you manage your debt, take control of your finances, and set you up for a better financial future.

If you’re living on CRB or a fixed income and struggling to pay your bills, EmpireOne Credit can help. Our debt expert can help you manage your debt or eliminate it altogether and set you up for a better financial future. Contact us for a free consultation.