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The Holiday Season is a time to reflect

The Holiday Season is a time to reflect

December 21, 2022

We have a lot to reflect on this past year.

For many it will be time for difficult financial decisions caused by some of the unkindest events we could imagine.

The world was progressing nicely and then there was COVID-19. That resulted in the most significant reset to our everyday lives that many have experienced in their lifetime.

To a large extent the world shutdown. Certain industries failed, particularly those that rely on people being out living their lives the way we normally do.

Our government poured relief money into the economy under the correct assumption that it is easier to keep an economy going than let it crash and then start to rebuild from the ground up.

Added to this was the Bank of Canada low interest rates. We had the perfect economic storm that encouraged overspending.

House prices soared, personal debt continued out-of-control, and suddenly borrowing costs went from historically low interest rates to unaffordable for many.

That’s the bad news. That’s reality.

Fortunately, one of the strong characteristics of humans is resilience. Some will make difficult housing decisions; others will seek part-time work to augment their full-time job.

Some families financial position remains strong. They are the lucky ones. Many are less fortunate.

This column is not meant to concentrate on doom and gloom but to acknowledge for some, these are challenging times. If there is ever a time to be proactive at managing your personal finances, this is it.

The human ability to problem solve is going to be one of the most important characteristics going forward.

We encourage you to carefully examine your financial situation. Have open discussions within your family. What are the most important things that need to be done to protect your financial future.

Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through