Since the economic crisis of 2008, many thousands of Canadians and Quebeckers have had to tighten their belts. When times are tough, it is wise to review your budget and determine which of your expenses are needed and which can be cut. That said, there are some expenses that should simply never be cut. It is even possible that by cutting these expenses, you are making things worse for your situation, as well as that of your family. These are cuts that could affect your health and put you in an even more critical financial situation than you are currently in. In order to save you from having to discover these errors by yourself, here they are:
Your pension and retirement contributions
In times of economic uncertainty, it may seem tempting to cut your pension contributions or pension funds. You are going to tell yourself that this is only a temporary measure and that you can make up for the deficit when your economic situation is recovering. Unfortunately, things are rarely so simple. Every year, we encounter unexpected obstacles and expenses. If you put in the habit of cutting your pension contributions when your economic situation becomes difficult, you will have to face a retirement that is even more difficult. Do not hurt your long-term prosperity to catch up with you immediately.
Your debt payments
Another temptation might be to cut your debt payments; your minimum credit card payments may seem easy to cut and may represent a significant amount of your monthly budget, but between the interest penalties and the deleterious effect that missed payments may have on your credit rating, such cut can only worsen an already precarious financial situation. Even in difficult times, your debt payments must remain a priority. Getting rid of your debt is after all one of the best ways to improve your situation!
Your home and auto insurance policies
Your monthly insurance payments can seem overwhelming when you try to reduce your expenses. Do not be tempted! An accident or a disaster quickly arrived; in such a situation your insurance policies are your best protections against financial ruin and overwhelming debt. The peace of mind that these alone provide you is worth the price and will allow you to face an already difficult situation with a few less worries. In any case, it is illegal to drive without insurance!
Your healthy diet and your gym costs
Let’s be clear: health, healthy eating, quality food … These are not luxuries. Cutting these expenses can be detrimental to your health and the health of your family; you risk not only unnecessarily depriving yourself of years and quality of life, but you also risk increasing your long-term medical costs and harming your income by limiting the number of working days of the year or you are healthy.
Your medical and dental insurance policies
Like food and gym costs, cuts like this can have a significant impact on your health and that of your family. While, yes, your financial situation is important, your health and your family are more important. There is no point in balancing your budget if this accomplishment harms your health and your future. Just like the forms of insurance mentioned above, these also provide you with a peace of mind that is worth its weight in gold.