6 Recession Tips.. it is never too late to plan
Depending on who you ask and the definition they use, a recession has occurred or is about to occur. The traditional definition is two consecutive quarters of economic decline measured in Gross Domestic Product. A more complex definition is a slowing of economic activity and an increasing unemployment rate.
Financial and lifestyle preparations for a recession should be undertaken now to lessen the effects should it occur. And if it does not, then you will be even better prepared for any economic shock that could unexpectedly occur.
Pay-down Your Mortgage or Top-up Your TFSA
The question of reducing debt or contributing to savings will continue to be debated for as long as people plan to retire in Canada.
Of course opting for both: reducing debt and increasing savings is the ideal. As for which is better, however, really depends on the individuals involved, their goals and feelings, and their unique financial situations.
If you find you just can’t decide whether to save or pay off, start by contributing to a TFSA; those deposits can easily be withdrawn and applied to your mortgage in the future.
A Step-by-Step Guide to Conducting a Life Insurance Audit
Many people tend to neglect the insurance part of their portfolio, but it is one of the most important tools you can have as a part of a financial plan. Just like your investments or other assets it should be reviewed regularly to ensure it is still protecting you in the ways that you need it to. The steps below will help you get started on your own life insurance audit.
What to Know Before Taking Advantage of the Current Interest Rates
Current economic conditions have interest rates the lowest they have been in years. Central banks lower rates in time of economic downturn to stimulate the economy. This can make borrowing money seem very appealing. It is important to keep in mind when borrowing that interest rates will not stay low forever. Canadians need to prepare for an eventual period of rising rates, as it will impact mortgages, lines of credit, student loans, savings accounts, and investments. A survey conducted by IPSO in 2016 indicated that 48% of Canadians are just $200 away from not being able to meet their financial obligations. With the current low rate environment being as appealing to consumers as it is, it is possible to take on debt that may become a strain once interest rates rise again…whenever that may be.
How Rising Interest Rates Could Actually Affect You
The Bank of Canada has raised interest rates 4 times since summer of 2017 and it is expected that they will continue to do so. Canadians need to prepare for a period of rising rates, as it will impact mortgages, lines of credit, student loans, savings accounts, and investments. A survey conducted by IPSO in 2016 indicated that 48% of Canadians are just $200 away from not being able to meet their financial obligations. With rates rising higher than they’ve been since 2008, households need to be aware of the impact rate hikes could have on them.
TFSA Contribution or Mortgage Payment?
The question of reducing debt or contributing to savings will continue to be debated for as long as people plan to retire in Canada.
Of course opting for both: reducing debt and increasing savings is the ideal. As for which is better, however, really depends on the individuals involved, their goals and feelings and their unique financial situations.
Debt Load
Are you out of your debt comfort zone? Does it seem as though you’re paying too much to bill collectors and not enough for savings …
Replace bad financial habits
By, Carla Hindman, Director of Financial Education, Visa Canada Most people have at least one bad financial habit. Whether it’s impulse shopping, forgetting to pay …
