This exploded yesterday on the news (which my new futon potato, BF, was watching), and on the internet after the articles were posted.
Household net worth dipped 0.6 per cent, or $34-billion, to $5.9-trillion, marking the first decline since the first quarter of last year, Statistics Canada said today.
It noted that liabilities, largely mortgages and consumer credit, increased, though the ratio of household credit market debt-to-personal disposable income fell for the first time since early 2006, to 143.7 per cent. The debt-service ratio also fell, both due partly to an increase in personal disposible income. But debt-to-net worth rose after falling for four quarters.
Six in 10 Canadians are living paycheque to paycheque.
Fifty-nine per cent of Canadian workers say they would be in financial trouble if their paycheque was delayed by just a week – the same proportion as last year when the economy was still mired in a downturn, according to the poll of 2,766 people.
I cannot stress the importance of the following and I am pleading with you!
- Trim your expenses, watch your budget and track your spending
- Pay down your debt as much as you can
- Save 3 months to a year’s worth of living expenses (a conservative estimate)
- Think before you buy: What may seem like a necessity, may not be one
I understand that the above is near impossible for many families, and I am not saying it’s easy as pie, or simply a question of cutting out your daily latte.
Some of these families (whom I know) are struggling because their husband/wife hasn’t found work yet, and they are short in their budget each month by $1000 – $2000, which is roughly a second income, and does not include saving.
However if you are a dual-income family, and what you make simply doesn’t cover your expenses, you need to build a budget, trim your expenses and track your spending.
You just simply have to.
There’s no other way around it, you need to know what you are spending so you can realize where you can cut back, or lower the frequency of. A banal example would be a $20 treat every 2 weeks of getting your nails done, consider going every month instead).