The unstable economy has been rather evident recently throughout the United States and Europe, with Greece acting as the canary in the coal mine. However, this morning I was reading in the news that with baby boomers actively preparing to retire, the standard of living in Canada will actually diminish. Why? One in four adults will be retired. Here, both causes go hand in hand.
We've also been told again and again that current interest rates won't hold. Eventually, they will rise. Hopefully not as high as the early 80s, when mortgage interest rates skyrocketed to the +20% range! My heart races just thinking it.
How will this affect you? How will you begin planning for stormy financial weather?
This is just one of the avenues where being frugal helps for the future. It's not just about saving a little money on groceries, but having a lifestyle that you can sustain and love on less than the income you earn.
Recent data is showing that housing purchases are levelling off. People are holding off on making the purchase. Why may that be? Could it be that the average Canadian has a debt to income ratio of 1.5:1?
It is time for us to begin living frugally, to reduce debt and save money. Then IF/WHEN the economy dives, we will be ready.
What are some ways you are reducing your spending or debt to live within your means?
Come on over to our Facebook page to discuss these questions and hopefully get ideas from others that are of a frugal mind.
If we learn how to do this now, we will be much better off then, regardless of our economic future.