Financial experts are now predicting that both the stock market and housing prices will continue to fall until the end of 2009, and the overall economy won’t hit an all time low until early 2010. Well, there go all those headlines and reports that said Canada’s economy will begin to look brighter by mid 2009. I don’t enjoy being the bearer of bad news but we all have to come to the sober realization that this economic nose dive is going to take some time to recover from. With the economy predicted to recover beginning only in 2011, we’re definitely in for the long-haul.
There are still a vast number of people out there thinking this financial mishap is going to correct itself within a few months, so for now they’re treating it as an excuse to spend and take advantage of lower prices. This is a huge mistake. I know we need to spend to get the economy going, but if you’re already experiencing personal financial trouble it’s only going to get worse. People need to keep track of what they spend and spend only what they can. Not what your credit card or your bank loan will allow you to spend, but what your actual take-home income allows you to spend. Debt is the leading enemy when it comes to withstanding difficult financial times. Try handling debt accumulated by a two income household when it’s been notched down to a single income household. These are the kinds of difficult situations I’m talking about.
I hope I’m wrong and that I’m just being a pessimist, but if I’m not then a lot of us are going to be in a heap of trouble once this economic downturn has run its course. I for one am holding strong by watching how I spend and working with my budget; hoping for the best but prepared for the worst.
Check out more about budgeting on the Stephen and Chris show this Friday, March 6th at 2:00 pm.
Comments on this entry are closed.