Do we need a reality cheque?

Now that the holidays are officially over a lot of us are bracing ourselves for the bills we’re going to receive this month. Overall, Canadians did pretty good in terms of spending this year, managing to decrease their spending by about 9%, but you wouldn’t have known it in the days following Christmas. Malls were crowded and people waited in lines outside of stores in the wee hours of the morning, ready to throw that plastic on the counter and take advantage of the sales. Did we forget about all the headlines? Did we forget that we’re in the worst economic downturn of our time?

Canadians still need to curb all of their unnecessary spending that results in over-indebtedness. This means acknowledging the financial reality we each have created for ourselves and stop living in the financial fantasies our spending habits are clearly supporting (case in point, Boxing Week). It’s one thing to buy something you’ve had your eye on for a while when it goes on sale, but if you’re purchasing things you really don’t need just because it’s a deal you’re literally paying for a financial mess in the future. We have to learn to keep track of our monthly spending by developing realistic spending plans that complement our monthly net income, while taking into account our long-term financial goals.

If we’re waiting for a reality check, I’m sure we’ll get one in the mail this month.