Many Canadians and economists think rising inflation issues, interest rates and housing costs may be warning signs of a looming recession. What’s more, 56 per cent of Canadians say they can’t keep pace with elevated cost-of-living trends right now, according to a survey conducted by the Angus Reid Institute.
Predictions about an official recession occurring are divided. Regardless, you can take the following steps to prepare or stabilize your funds:
- Understand your expenses by examining and assessing your current financials, paying close attention to savings opportunities.
- Adjust your budget to plan for everyday and large purchases and stick to it. Remember to keep it realistic.
- Make it a habit to live within your means. People who adopt this lifestyle are less likely to go into debt and can pivot their spending to compensate for changes.
- Build an emergency savings fund—specifically, at least three to six months’ worth of living expenses—to pay for unexpected costs.
- Switch up your grocery spending by shopping with a meal plan, buying generic products rather than brand-name or purchasing items in bulk.
- Negotiate your monthly bills (e.g., utilities, phone and internet) or ask about discounts or coupons.
- Consolidate your loans and pay off as much of your debt as possible.
- Secure proper insurance (e.g., auto, homeowners, health and life) to help maintain financial protection amid unexpected losses.
To deal with economic uncertainty, focus on developing healthy financial habits for today and the future. In addition, consider discussing your situation with a financial advisor. Speak to your employer if you need further financial resources.
For more information on structuring your insurance program during a recession, or to find out how to reduce your insurance costs call CMB at 780.424.2727 or click here to get a quote.