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Abstract

the choice of either paying off one debt completely or keeping the money in savings. I chose to make a bigger than usual payment on the debt but kept the bulk of the money in savings.The funny thing about savings accounts — once you see it build a little it turns into a game. Seeing that balance makes you not want to spend and then it becomes a challenge to see how much it can grow.<h1 id="30ec">Tax time</h1>Not yet knowing a pandemic was about to hit, I was fortunate to have filed my taxes early this year. I wasn’t expecting a return because last year I actually had to pay, so I was pleasantly surprised with the mediocre amount I got back this year.Again, since I had previously balanced out my finances through hard work, this was money I didn’t need to factor into everyday spending. I added it to my savings account.<h1 id="0bbd">The shit hit the fan</h1>I’m sure you can all concur, nothing — and I mean nothing — can prepare you for the day that your job shuts down over something you have no control over. The uncertainty is epic and the feeling is surreal.When I found myself unemployed I was pissed that it happened at the ONE point in my life where I actually had a savings account. I was angry. This was supposed to be my year to get ahead and now I was faced with possibly going under.My workplace was stellar after my layoff. They worked diligently to put us in the best position possible while waiting for government funding.They paid us severance, which they certainly didn’t owe us. As a result, my final pay was higher than any I’d ever received. I paid all of my bills immediately which allowed me to not have to think about it again.Then I stuffed another chunk of money into savings.<h1 id="faed">Crisis presented opportunity</h1>Because of this pandemic <a href="https://readmedium.com/super-humans-are-coming-out-of-the-woodwork-8a3f664b45e4">more generosity</a> than I’ve ever experienced has come into play. People and businesses have stepped up to ease the burden.I’ve been taking advantage of the many concessions being offered because, why not? Never before have we been offered a break from financial stressors and we probably never will again.Within the first week of shutting down I got in touch with the three highest bills I pay each month, asking for concessions because I had no idea when assistance would roll in.In essence, I saved myself over $1000.00 just by reaching out and being proactive. This allowed my regular bank account to stay somewhat intact, and left my savings account untouched.<h1 id="9a10">Assistance rolled in</h1>After three weeks of unemployment, EI finally kicked in. Because I had been proactive with my finances sev

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eral weeks earlier, I had nothing pressing me.When I received my first EI payment I went to the grocery store and stocked up on the basics. Now all I need to shop for is fresh food, weekly.I have the same tank of gas I had a month ago because I’m not driving further than my community grocery stores.Because I was proactive with my bills in the beginning, my March Medium paycheck went straight into savings.<h1 id="be7d">Travel is off</h1>April and May are always my vacation months. Whatever money I’m able to stash away throughout the year has always been spent on travel. However far I’m able to pay down my credit card each year, it always gets racked back up by travel.Obviously that’s not a thing this year, hence my bank accounts are growing and my credit card debt is shrinking.I’ve never been a “rainy day” saver because of my love for travel but now I’ve been forced into staying put. It’s a blessing I had never allowed myself before. I was always willing to be broke in exchange for experiences.<h1 id="b720">Do I feel guilty that I’m doing well?</h1>No, not at all. The way I see it, I’ve been contributing to this crisis event my entire working life.I’m 47 years old and have been paying into the employment insurance pot for over 30 years. Unlike my own bank accounts, I’m happy to dip into the government one now because that’s what it’s for.As someone who has worked my whole life and single-parented for eighteen years, I feel proud that I’ve never relied on “the system” to get by.The last time I lost a job due to recession I did not take advantage of EI. I cashed in my own retirement funds to support myself.I’d say that I can comfortably accept this help right now.We pay insurance premiums for a reason — to ensure that it will be there when we need it, so I’m good with dipping my hand into the pot.Having said that, I’m not a lazy person who expects anything to be handed to me. Yes, I want to go back to work and earn my keep. Yes, I’m having trouble taking this gift of relaxation at face value. And yes, I’m a little disturbed that I’m benefiting from tragedy.But no, I don’t feel bad that it’s working in my favor so far.This is a once-in-a-lifetime gift I’ve been given. It’s quite possible I may end up in a position of needing my savings before this crisis is over, so if that time ever comes I’ll be glad I made it a priority.If you enjoyed this story, here’s my non-intrusive way of ushering you <a href="https://writtenbykristi.substack.com/">toward my newsletter</a>. When you subscribe, I’ll know you’re cool with hearing from me once in a while.</article></body>

The Pandemic Put Me in the Best Financial Position of My Life

I’ve been preparing for this moment for over 30 years

Knowing how the current situation has negatively impacted several million people worldwide, I feel a little sheepish admitting that I’m in the best financial position I’ve ever been in.

It’s all due to the pandemic.

Never before have I been this comfortable with my finances and I’m trying to figure out how it happened.

Since being laid off my job more than five weeks ago my income has been significantly reduced. Employment insurance is roughly 60% of what I earned at work and my Medium earnings have plummeted.

Yet I’m still coming out on top. I’ve been able to build my savings account to a level it has never reached, I’m paying my bills on time, and my usual financial panic has disappeared.

So how have I been able to create this gravy train in the face of an economic crisis? Let’s take a look at what has changed.

Income patterns changed

When I had a job I knew exactly which days to expect money. Payday was every second Friday and I had all my bill payments hand written on my calendar to coincide with paydays.

When we know money is regularly coming in, we mentally spend it before we have it. Now, I have no clue which days money will be hitting my bank account so I’m a lot more vigilant about spending.

I have yet to figure out the frequency of EI payments so I’m hyper-aware of every dollar I spend. I used to spend on the most useless things without batting an eye, but now I differentiate between wants and needs.

I started a small savings account BEFORE shit got real

In mid-2019 I made the decision to leave my second job and replace that income with Medium earnings. I was working six days a week for nearly a year when I started writing here.

On the tail end of 2019 I had balanced out my finances enough that my Medium paychecks no longer needed to be part of my monthly budget.

I didn’t need to rely on writing to pay that last straggling bill of the month, so I started a small savings account. When I say small, I mean it was really small.

January happened to be an incredible earning month for me. Somehow I had one article go crazy and my Medium paycheck was bigger than expected.

At that point I was faced with the choice of either paying off one debt completely or keeping the money in savings. I chose to make a bigger than usual payment on the debt but kept the bulk of the money in savings.

The funny thing about savings accounts — once you see it build a little it turns into a game. Seeing that balance makes you not want to spend and then it becomes a challenge to see how much it can grow.

Tax time

Not yet knowing a pandemic was about to hit, I was fortunate to have filed my taxes early this year. I wasn’t expecting a return because last year I actually had to pay, so I was pleasantly surprised with the mediocre amount I got back this year.

Again, since I had previously balanced out my finances through hard work, this was money I didn’t need to factor into everyday spending. I added it to my savings account.

The shit hit the fan

I’m sure you can all concur, nothing — and I mean nothing — can prepare you for the day that your job shuts down over something you have no control over. The uncertainty is epic and the feeling is surreal.

When I found myself unemployed I was pissed that it happened at the ONE point in my life where I actually had a savings account. I was angry. This was supposed to be my year to get ahead and now I was faced with possibly going under.

My workplace was stellar after my layoff. They worked diligently to put us in the best position possible while waiting for government funding.

They paid us severance, which they certainly didn’t owe us. As a result, my final pay was higher than any I’d ever received. I paid all of my bills immediately which allowed me to not have to think about it again.

Then I stuffed another chunk of money into savings.

Crisis presented opportunity

Because of this pandemic more generosity than I’ve ever experienced has come into play. People and businesses have stepped up to ease the burden.

I’ve been taking advantage of the many concessions being offered because, why not? Never before have we been offered a break from financial stressors and we probably never will again.

Within the first week of shutting down I got in touch with the three highest bills I pay each month, asking for concessions because I had no idea when assistance would roll in.

In essence, I saved myself over $1000.00 just by reaching out and being proactive. This allowed my regular bank account to stay somewhat intact, and left my savings account untouched.

Assistance rolled in

After three weeks of unemployment, EI finally kicked in. Because I had been proactive with my finances several weeks earlier, I had nothing pressing me.

When I received my first EI payment I went to the grocery store and stocked up on the basics. Now all I need to shop for is fresh food, weekly.

I have the same tank of gas I had a month ago because I’m not driving further than my community grocery stores.

Because I was proactive with my bills in the beginning, my March Medium paycheck went straight into savings.

Travel is off

April and May are always my vacation months. Whatever money I’m able to stash away throughout the year has always been spent on travel. However far I’m able to pay down my credit card each year, it always gets racked back up by travel.

Obviously that’s not a thing this year, hence my bank accounts are growing and my credit card debt is shrinking.

I’ve never been a “rainy day” saver because of my love for travel but now I’ve been forced into staying put. It’s a blessing I had never allowed myself before. I was always willing to be broke in exchange for experiences.

Do I feel guilty that I’m doing well?

No, not at all. The way I see it, I’ve been contributing to this crisis event my entire working life.

I’m 47 years old and have been paying into the employment insurance pot for over 30 years. Unlike my own bank accounts, I’m happy to dip into the government one now because that’s what it’s for.

As someone who has worked my whole life and single-parented for eighteen years, I feel proud that I’ve never relied on “the system” to get by.

The last time I lost a job due to recession I did not take advantage of EI. I cashed in my own retirement funds to support myself.

I’d say that I can comfortably accept this help right now.

We pay insurance premiums for a reason — to ensure that it will be there when we need it, so I’m good with dipping my hand into the pot.

Having said that, I’m not a lazy person who expects anything to be handed to me. Yes, I want to go back to work and earn my keep. Yes, I’m having trouble taking this gift of relaxation at face value. And yes, I’m a little disturbed that I’m benefiting from tragedy.

But no, I don’t feel bad that it’s working in my favor so far.

This is a once-in-a-lifetime gift I’ve been given. It’s quite possible I may end up in a position of needing my savings before this crisis is over, so if that time ever comes I’ll be glad I made it a priority.

If you enjoyed this story, here’s my non-intrusive way of ushering you toward my newsletter. When you subscribe, I’ll know you’re cool with hearing from me once in a while.