What to Do if Injury or Illness Prevents You from Earning

How to Afford Life if You Can’t Work

Life can be very unpredictable.  And that has never been more accurate a statement then in this time of COVID. You never know what is going to happen from day to day and, unfortunately, that can be incredibly stressful.  But even if we remove COVID from the list of pressures we face there are all sorts of other difficulties many of us are forced to deal with all the time.  Especially if you have become sick or have been injured and find yourself unable to get to work.  Injury or illness often translate into little or no income flowing in to help cover the monthly bills.  We also must ensure we have the necessities of life, such as food and shelter, dealt with. And that often means changing the ways in which we think about money.

What that goal in mind, here are some handy financial strategies for you to consider adopting if you find yourself unable to work due to illness or injury:

Set Up That Emergency Fund

Everyone needs an emergency fund. Unfortunately, most of us do not have one.  Emergency funds are a perfect safety net because we never know what life is going to throw at us. If you find yourself unable to work, you can always fall back on your emergency savings to temporarily pay the bills.

Lucky for us, technology can help end our procrastination about setting up that emergency account.  The banks have implemented some powerful yet simple online and telephone-based savings tools in recent years, including the ability to designate a small amount each week from your main bank account (say, for example, $25 or $30) which can be deposited automatically into a separate savings account or a TFSA (Tax Free Savings Account).   That is what I did to build up my emergency fund — now it is there in case I need it and continues growing weekly.  

Of course, allocating some of our money automatically to a savings account is going to impact our budgets.  You will want to make sure you modify your budget and try to spend a bit less each month so your savings can build up faster (and last longer if you become sick or are injured on the job).

A good budget is always a work in progress.  And should be reviewed and adjusted every three to six months to ensure it is accurate and reasonable. One way to adjust your budget is to look at your spending and see where you might be able to make some cuts. For example, consider stopping any subscriptions you may have (such as Netflix or Disney+), not permanently but at least temporarily. And once the threat of the pandemic has dissipated, consider continuing to cook food at home if you are well enough.  It is healthier than the fast-food places and less expensive than ordering in from restaurants.  You will save each month if you make even minor changes to your spending and routine.  

If you do not have an emergency fund and you are currently earning an income, it’s an innovative idea to start implementing one as soon as possible. You never know what lies in your future.  And while you are earning a good income you can begin to prepare yourself for any potential problems down the road. 

One more quick tip:  If you find yourself dipping into that emergency fund all the time (even when there is no emergency), make it more difficult to withdraw funds by moving everything to a TFSA account.   A TFSA allows you to earn interest on your money without a further tax hit. And it also takes a few days to withdraw funds, so is a helpful solution for anyone who needs a bit more discipline with their savings strategy.   

Government Benefits

Depending on where you live, there may be various government-sponsored benefits available to those who are unable to work due to illness or injury. These benefits may include:

• Employment Insurance
  • Employment insurance (EI) benefits are available to those who lose their jobs or are unable to work due to no fault of their own. This means that you could be eligible for EI payments if you are sick or injured and unable to work. Check out the federal government website at https://www.canada.ca/en/services/benefits/ei.html for more information on how EI can assist you.  
• Social Assistance
  • You may qualify for social assistance payments if you are in financial need. Consult with your local government for more information. In Ontario, a program called Ontario Works can help you short-term.  Check out the details here:   https://www.mcss.gov.on.ca/en/mcss/programs/social/ow/
• Disability Support
  • Depending on the extent of your injury or illness, disability support payments may be available to you through the federal government’s Canada Pension Plan (CPP). It is designed to help people with disabilities pay for living expenses short-term. Check out the details here:  https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-disability-benefit.html
• Workers’ Compensation
  • If you suffered an injury at work or have experienced significant psychological or emotional distress due to a traumatic incident in the workplace, you could be entitled to workers’ compensation benefits (if your employer is registered with the plan). Ontario WSIB has a helpful website where you can find answers to most of your questions:  https://www.wsib.ca/en/injured-or-ill-people/resources-injured-or-ill-people/resources-injured-or-ill-people

Private Insurance

You may be able to receive disability benefits if your employer has you set up on a benefits plan that includes disability or illness insurance coverage.   Check with your company’s human resources manager to determine what might be available to you.  For example, many employers have benefit plans run by companies such as Manulife Financial and Sun Life.

Keeping Your Job

If you have a short-term illness or injury, and you believe you will only be out of work for a brief period, you may wish to consider using your sick leave and vacation time (if available to you) rather than accessing private insurance or government assistance programs. 

Alternatively, and something we’ve all seen happening during this recent pandemic, you may also wish to ask your employer for permission to perform your work responsibilities (or a modified version of them based on your health) from your home for a brief period. After COVID-19 arrived, many employers switched their staff to home-based work, complete with computer equipment that allowed them to function as efficiently as in a traditional office environment.    Now that work-from-home and zoom meetings have become commonplace worldwide there may be more acceptance from your employer to the idea of you working from home while you recover from a work-related injury or an illness.

Depending on the company you work for, your employment contract, and where you live, your employer may not have to keep your job for you if you cannot work. However, this will depend on the province where you live, how long you have worked for your employer, the size of the company, and a few other factors. It is important that you consult local laws to figure out whether your employer is required to hold your job while you recover. And have a chat with your Human Resources manager to find out your rights and obligations during this challenging time for you. 

Whatever path you take to keep a roof over your head and your bills paid during a time of either illness or injury, we hope you find these tips helpful and will use them if they are relevant to your situation.    We also wish you good health and a successful future.

If you think your financial pressures are becoming too large to handle on your own, or just need some advice on the right way to tackle your debt, please just click on the FREE CONSULTATION button, below, or give us a call today.  We are here to listen – and to help!