Many struggle with high inflation
December 8, 2022
Managing personal finances is harder during inflationary times, writes Peter Watson.
When it comes to how inflation affects Canadians there is good news and bad.
Three out of four Canadians reduced their spending to help them cope with higher prices, according to a Maru Public Opinion Survey.
The reality is people have different abilities in dealing with higher prices. Almost half of Canadians are feeling the effects of inflation to the point they have made drastic changes to their lifestyle.
On a more serious note, one in three report that increasing interest rates have pushed them to the “brink of financial despair.”
In my opinion, the most at risk to financial despair are those that pay their bills by using credit cards. This is done by one in four.
In the future they are likely to have expenses they cannot afford, plus added to that are increasing credit card balances with exorbitant interest rates. This for many will cause the most financial damage.
The good news is it important that inflation be controlled. Controlling inflation will lead to economic stability and that will benefit us all.
The Bank of Canada has a job to do. It must control inflation.
These are very challenging financial times.
Managing your personal finances is far more important now than it was a few years ago.
Peter Watson is registered with Aligned Capital Partners Inc. (ACPI) to provide investment advice. Investment products are provided by ACPI. ACPI is a member of the Investment Industry Regulatory Organization of Canada. The opinions expressed are those of the author and not necessarily those of ACPI. Only investment-related products and services are offered through Watson Securities of ACPI. Peter Watson provides wealth management services through Watson Investments. He can be reached at www.watsoninvestments.com