With unaffordable housing and the cost of groceries increasing daily, the cost of living in Canada is coming in at a high price tag.
Today, many Canadians are having to make significant adjustments to their financial budgets, cutting out modest indulgences and focusing solely on covering their monthly financial needs. With rent or mortgage payments, food expenses, bills, and transportation costs stretching pocketbooks – money has increasingly become a top concern for Canadians.
As economic insecurity becomes a growing trend in households nationwide, we’re taking a deeper dive into the four questions keeping Canadians up at night and potential solutions to help you feel more secure about your financial future.
1. How do I pay off my looming debt?
Are you currently in the red and trying to get your balance back into the black? Do you find that your monthly payments don’t make a dent in tackling your debt problem? You’re not alone. For young Canadians, paying down high-interest financial debt can feel like a tall order – because even after you’ve made a payment, the debt never seems to vanish.
One popular approach to help Canadians tackle their debt is implementing the debt avalanche method. When applying this debt repayment method, you should focus on paying down the credit card or debt with the highest interest first while making minimum payments on the rest of your debt. By implementing this strategy, you’ll be able to shave off years of interest in a shorter timeframe and be one step closer to crossing another debt off your list!
2. Is home ownership even a possibility for me given the current housing market?
Whether you’re in a large city or a smaller town, many young Canadians are being confronted with the high cost of homeownership, which only continues to climb. From bidding wars to limited housing availability, the road to homeownership seems like an impossible dream for many hoping to enter the housing market.
So how do you combat the fear of your homeownership dreams growing farther away? Before applying for a mortgage, get expert advice on what you can afford given your current financial situation. Various financial institutions, including Kindred, work with their members to build customized financial plans and solutions based on their income and budget to help them realize their homeownership dreams.
Whether you are self-employed, new to Canada, or a first-time home buyer, Kindred may have the mortgage answer you’ve been looking for.
Explore the different mortgage solutions being offered, and take the time to speak with a member of our Personal Lending Team to build your roadmap to becoming a homeowner.
3. Do I really have enough savings?
In today’s precarious economic climate, Canadians are increasingly conscious of their finances and are left wondering whether they have enough money set aside to sustain their standard of living and to handle unanticipated emergencies. How much savings is enough? You may have heard of the 50/30/20 rule, which recommends 50% of Canadians’ income should cover the essentials such as housing, food, and utilities, 30% for non-essentials, and lastly, 20% towards savings or debt repayment if necessary.
Is committing to this level of savings feasible when you are living paycheque to paycheque? What if you are concerned about losing your job?
There are a few answers to this all-important question. Just start saving what you can! Whether it’s $50 a week, $200 bi-weekly, $1,000 a month, or anything in-between, start now by setting up an automatic transfer directly to your savings account with an amount you can afford. After all, small financial changes today could mean significant savings for you tomorrow.
Whether you are saving for a rainy day, a car, or your first home, there are many high-interest savings accounts and investment options that you can utilize to help you reach your savings goals.
If you’re feeling overwhelmed and are unsure how to develop a savings strategy, consider speaking with a member of our Wealth and Investment team at your local Kindred branch to help you determine a personalized savings plan based on your risk tolerance, income, and your short-term and long-term goals.
Ultimately, by being proactive and sticking to a savings plan, you’ll improve your ability to achieve your goals and set yourself up with a little financial cushion to navigate any unexpected financial surprises that come your way.
4. Should I save for my retirement now?
When is the right time to start saving for retirement, and how much should you set aside? Again, the perfect time to start is as soon as you are able. While retirement may be decades away, contributing small increments towards your Registered Retirement Savings Plan (RRSP) at an early age will help you slowly build your retirement savings. Plus, by jumping on the retirement savings bandwagon early on, you’ll be able to take advantage of compound interest which means even more cash in your retirement pocketbook.
The first step is to speak with a member of our Wealth and Investment team. This will allow you to obtain a holistic picture of your current financial situation so that you can develop the best savings strategy to get your retirement account up and running. If you’re 25 and thinking about your retirement savings, you’re already a step ahead. If you’re in your 40s and just getting started with RRSPs, you still have time to catch up on your contributions and retire comfortably.
Whether you contribute to an RRSP, take advantage of joint contributions to your Canadian Pension Plan alongside your employer, or add savings to your TFSA, there are various ways to fund your retirement. Simply put, starting now is better than not starting at all.
Sleep more soundly with advice from our Wealth and Investment team.
From far and wide, Canadians from coast-to-coast share one universal concern: their financial futures. From how to pay down debt and save for a home, to saving for retirement or building adequate savings, Canadians are struggling with these four pressing financial questions.
Kindred Credit Union can be a great financial option for all your banking needs and can provide personalized solutions to help you achieve a brighter financial future, so you can rest your head at night with ease. It pays to plan. To book an appointment with a member of our Wealth and Investment Team, click HERE.
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