The COVID-19 job loss action plan

The COVID-19 pandemic has been challenging for all of us, many of us are facing never-before-seen financial challenges, businesses have been forced to close down and workers are being laid off. If you’ve lost your job, we’ve put together an action plan below that could help you through this challenging time. We’ll continue to update this list as the situation evolves. 1. Stay calm and stay cautious 🧐 It may be difficult to keep a clear head in chaotic times like these, but don’t let panic overrun your common sense. Avoid overspending and over-buying supplies. Fraudsters have already started preying on consumers' fears and spreading misinformation, so be cautious with phone calls, emails, and texts regarding COVID-19. To help you monitor and protect your finances during this crisis, in addition to our free monthly credit score monitoring, we’re also offering one month of free MogoProtect identity fraud protection. Our credit bureau partner Equifax is also currently offering a free credit report to all Canadians and you can get yours here. 2. Get support from the government 💵 Aside from the standard benefits like EI, the government has announced an Economic Response Plan to provide additional financial assistance

More money and a healthier planet

Spend less and save more than you think. Overspending is the number one reason why Canadians are struggling financially and overconsumption is directly linked to climate change. In other words, financial health and the health of the planet are closely linked. With Canada now in a state of climate emergency, we want to make it easier for Canadians to make a positive impact while improving their financial health by offering a carbon offset program that is the first of its kind. How will we reduce your carbon footprint? A carbon offset is a reduction in emissions of carbon dioxide or other greenhouse gases made in order to compensate for emissions made elsewhere. Mogo will purchase credits for emission reductions achieved by projects such as wind farms, solar installations, or energy efficiency to reduce your net climate impact. We've partnered with Offsetters, one of Canada’s leading providers of sustainability and carbon-management solutions, to offset carbon emissions. Our current carbon offset project is the REDD+ Amazon Forestry Project. The Amazon Rainforest is the world’s largest natural carbon sink on land and home to 30% of the planet’s known biodiversity. This project protects 130,000 hectares of land in a

Focus on habits, not goals

Now that the new year is under-way, we thought it would be a good time to check in and see how you’re doing with your New Year’s resolution. Every year one of the top New Year’s resolutions made by millions of people is to “get out of debt and save money”. But according to a U.S. News & World Report 80 percent of these resolutions fail by February, so what are we to do? Goals are outcomes that are achieved by consistent behaviors or habits. According to Charles Duhigg author of The Power of Habit: Why we do what we do in life and business, 40% to 45% of our daily decisions are actually habits. If your goal was to be physically fit, it’s the daily habit of exercise and healthy eating that would actually get you the results. So if you want to achieve a goal like getting out of debt and saving money, focus on mastering the habits that will actually get you the results. Once the motivation and excitement of your new year's resolution wears off, it’s your habits that will end up determining the results you get. 4 Habits of financial

Budgeting for those who don't like to

Don’t like to budget? You’re not alone. A recent survey showed that 44% of Canadians would rather organize their closet than make a budget. But we have good news, there’s a way to do this that isn’t that complicated and won’t take that long to complete. Most importantly, the time you spend going through this exercise will more than pay off in the end and will be a big step forward in your financial journey. The 50/30/20 rule is budgeting for those who don’t like to budget. It works because it’s easy and straightforward – no spreadsheets or complex budgeting tools. It should take only 30 minutes to an hour to complete and can easily save you hundreds or even thousands of dollars a year. It’s going to help you get on track to achieve your top financial goals like getting out of debt and accelerating your saving and investing. The 50/30/20 rule It's simple. Allocate 50% of your after-tax income for needs, 30% for wants, and 20% for goals like debt, savings, and investing. 50, 30, 20. That’s it. This is a guideline and is meant to

Crush your debt in 2 ways

Debt sucks, we agree. It’s the biggest financial stressor for most people, which is why paying down debt has been the top financial goal for Canadians 9 years in a row. A recent survey shows that 57% of Canadians are carrying credit card debt, which proves that credit cards are a widespread problem and bad for your financial health. In fact, research has shown that people will spend as much as 100% more on a purchase with a credit card compared to spending their own money. While there are a ton of different ways you can approach paying off debt, we’ve narrowed it down to two proven methods that you can start using to crush your debt. Before we get into the details, the prerequisite is that you are already taking control of your spending (for example, using the 50/30/20 rule), meaning that you aren’t going further into debt and you have a certain percentage of your income available for debt repayment. Now let’s get into it. First up, the snowball method This method is all about small wins and staying motivated. When snowballing, you pay the minimum monthly payment on all of your