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TORONTO – Are we facing a critical time and a potential financial tipping point for Canadians as many face the “COVID reality” and the “new normal” of life as we know it?

According to a new report from the Canadian Payroll Association, for millions of Canadians who have remained on the payroll since March 2020, the pandemic appears to have been a financial boon. But now their earnings may be in jeopardy.

Working from home has reduced the costs of transportation, childcare and the near disappearance of many forms of discretionary spending.

In fact, according to the Canadian Payroll Association’s 2021 annual survey of Canadian workers, 53% were able to save more money than a year ago, and less (36%) live on a check. payroll to the other than before. 13 years.

The question remains, however: will the new frugal behaviors imposed on us during the pandemic translate into habits that remain?

And the habits are impressive.

Over 70% say they now spend less than their take-home pay in a typical pay period, a historic high and an 11% increase since 2019.

Over 40% were able to spend more than 10% on savings, up from 34% in 2019.% say they could face an unexpected expense of $ 20,000.

These data points are not only encouraging, they are liberating. Lowering expenses and living within your means will reduce household stress and vulnerability when you live paycheck to paycheck.

A separate survey conducted by MNP in April found that 53 percent of respondents were $ 200 or less away from not being able to pay a bill or debt.

For example, a report like this one from the Canadian Payroll Association reinforces the fact that financial flexibility achieved through lower spending can give families the financial leeway they need to deal with a sudden expense and unforeseen.


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