There are a lot of headlines at the moment that are concerning, but it is important to provide context to the stories.
Recent data from Statistics Canada shows that Canada is currently in a recession. Recession is one of those words that can create concern. And while this is news not to be taken lightly, it’s not time to panic either.
Typically, a recession means that there is an overall economic slowdown for two consecutive quarters- which has happened. The good news is that some major economic factors (employment for one) continue to be positive, which many analysts are suggesting will set the stage for our economy to rebound fairly quickly.
That doesn’t necessarily mean that it will be smooth economic sailing either. Have you given thought on how to recession-proof your household?
If the economy is in for a rocky road (at least in the short term), you would be well advised to get in the habit of doing more with less. Tighten your purse strings now- when it is a choice and not a necessity, and you will feel less of a blow, should your income reduce through job loss or downsizing.
Now is not the time to rack up your debt load. Even though interest rates are low, and it is tempting to buy now and pay later, you’ve got to embrace a cash-only lifestyle. For bigger items, turn buy now, pay later on its ear and save up before you purchase.
Maybe you’ve been whittling away at your debt, without much traction over time. If it is appropriate for your personal financial situation, you may want to consider consolidating your debts. This will accelerate the timeline before you are debt free and also free up cash flow- meaning that you’ll have more money to direct toward emergency savings- should you need it.