As recently reported in the Globe and Mail & on CTV News, food and gasoline prices are both significantly up. But you probably didn’t need me or them to tell you that.
At first glance, you might wonder what the current inflationary trends in
food and gasoline have to do with your mortgage. The reality is that these three areas (food, shelter, and transportation) account for the vast majority of most Canadian household’s budget.
With food and gas prices up, and spring and summer months just around the corner, without question higher prices at the pump and the grocery mean less to spend elsewhere.
It always amazes me how many times each week I will speak with someone who is struggling with unsecured debt, but sitting on significant equity in their home. Home equity loans are a practical way to help offset today’s income/expense imbalance by reducing high-rate credit cards and credit lines.
Stagnant worker wages and a stable but somewhat anemic labour market in Ontario means that more effort needs to be invested by Canadian consumers to reduce unnesessary spending and improve the strength of their own personal balance sheets.
If you aren’t making signicantly more at work, and the medium term prospect for a significant pay hike doesn’t look too good, start off by creating a budget and don’t forget to “pay yourself first!”. More on that topic soon.
