The importance of a balance sheet is becoming increasingly evident with each passing day of the COVID-19 pandemic.
Whether that is for a business or a government – regardless of the level – having the financial strength to access much-needed cash to support itself or those who rely on it is critical. For businesses, that means being able to sustain their operations – paying for rent and utilities – as well as their employees and suppliers at a time when income is reduced. For government, it is being able to underwrite programs to help those in need at a time of stress.
And we’re now seeing at least one province is in trouble. It is going to have to rely on Ottawa to see it through this crisis.
It is times like these that reinforce the arguments around fiscal prudence: paying down debt when it is politically popular to spend or simply spending less than we take in. It is equally valid for personal finances as it is for businesses or governments and it all starts with not only living within our means but setting aside a little for times like these.
