With Christmas just around the corner it’s hard to think about setting budgets and saving money, especially when we are bombarded during the holiday season with advertisements trying to get us to spend it all on the latest gadgets and super sales. But, we may need to seriously think about our financial future right now if we’re going to change where, some say, we are headed as a nation.
Tag Archives: Economy
When you look at your money, you don’t usually expect to look through it. However, Canada’s new bills bring a new meaning to transparency when it comes to your finances.
The latest in Canadian money is money made from polymers. Canada released $100 bills in late 2011, and has a plan to put bills of lower denominations in circulation through the end of 2013. The new bills are meant to be more secure — not just look cool.
The Canadian economy, for the third time in the last five months, has shed jobs. While the US economy has been seeing an increase in jobs added to the economy, Canada has been struggling a bit. Indeed, the situation appears to have changed since Canada pulled its economy out of a recession with the help of hiring.
Now, there are concerns that the Canadian economy might slow down, and even worries that there is a housing bubble on the verge of bursting. As you consider the future, it’s time to consider whether or not you would be ready for an economic slow down.
Even though Canada’s economy didn’t suffer the same level of setback from the 2008 financial crisis as our neighbour to the south, there are still indications that things are far from perfect in Canada. The difficulties that might be coming to the economy in the future, as well as the prospect of not having enough of your own resources to weather a setback, should cause you to reflect, and consider planning for your future.
It’s been a wild, wild week in the financial markets. If you’ve been watching, you know that markets have been unsettled, swinging wildly from losses to gains. All of this craziness has some people making panic decisions, changing the way they do things because of fear. While it might be tempting to follow the crowd and depart from your well-thought-out financial plan, it’s probably better to take a step back and consider your options.
Is Your Financial Plan Solid?
Before you abandon your financial plan — especially the portion that includes stocks — take a step back and consider your plan. Is it solid? When you made the plan, were you thoughtful? Look at the big picture. Has anything really changed? Yes, the markets are in disarray. But if you still have a job, that doesn’t change the amount of money you can put into your high yield emergency fund. Nor does it change the need for you to save for the future.
In Canada, as in the United States, the recovery has hit a menacing roadblock – rising consumer debt. As Canadian consumers begin to worry about their debt levels, spending is dropping off — and that is holding back the economic recovery.
Indeed, much like the U.S., which sees 2/3 of its economy supported by consumer spending, a large portion of Canada’s economic growth comes from discretionary spending. As a result, as Canadians step back and look at their credit card debt, they aren’t liking what they see. They are tapped out and ready to cut back on their spending. And force cutbacks in economic recovery.