Navigating a Financial Pinch – How to Money

Many of us are feeling the pinch of inflation, but as life goes on, it’s important to look at ways to persevere and get through troubling times financially. In the Canadian Maru household outlook index, one in six Canadians say it is likely that they would default on making payments on a major loan or mortgage in the next 60 days.

A recent report from Statistics Canada has suggested that a little over a third of Canadians are having difficulty making ends meet. The same study suggests about 26% would be unable to cover an unexpected expense of $500. Stats Canada survey on Quality of Life and Cost of Living says another major concern with Canadians is their ability to afford housing or rent. Deliquency rates for auto loans are on the rise according to a CIBC Capital Markets report as well. Using smart financial strategies during difficult times can allow you to get ahead.

RELATED: Getting Ahead When Living Paycheque to Paycheque

Get Serious About Budgeting

There’s no time like the present to look into budgeting and budgeting apps to track your expenses and help you manage your finances. Learn about avoidable financial mistakes so that take control of budgeting and debt. As you become financially fit you discover a whole new world worth learning about open up for you. From money management and the art of borrowing or debt consolidation to saving money, making your money work for you and much more. When you have a better handle on budgeting and saving money you are less likely to find yourself in a situation where you need to borrow when unexpected expenses like repairs or something else comes up. Ideally, if the need to borrow comes up, it’s obviously preferred that you could get the best rate. But if you find yourself in need to get a loan with bad credit there are lending options too.

Get Serious About Saving

Having an emergency fund is one thing (hopefully you have this covered) and saving money is another. Learning about how to put money aside each month for future plans should be at the top of your financial plans. It could be an RRSP, TFSA or some other means of setting money aside for the future. But when money is tight and it’s difficult to save, looking into a side hustle and finding additional ways to increase your income is sometimes the smart move. There are dozens of ways to make money online if you’re motivated. The extra income can help you to start putting away more, and when you get serious about saving you start to feel better about your own financial situation.

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Dealing with Debt

One way that can help you to save more money is by dealing with debt. It’s not a quick fix, but the sooner that you pay off loans or credit card debt, the sooner you will be able to use that money towards building your savings. You don’t want to let things get so bad that you are considering to declare bankruptcy or filing a consumer proposal or similar. If you’re still making payments on a previous loan, look at the terms to see whether paying off your loan early makes sense. If you’re thinking that you couldn’t afford to do that, it’s worth looking into it before you dismiss the idea. Depending on your previous loan and current credit score, sometimes a debt consolidation loan makes sense. This is where you take a loan to pay off the debt you have, but it only makes sense if you qualify for a loan with a lower interest rate than some or most of the debt you currently have. Your eligibility often depends on your credit score to get a loan so if yours has improved since you last borrowed you may find this to be an option. You should also know your score before getting a loan, because sometimes a small improvement to your score can allow you to get better rates. At the same time, you should also know in advance some mistakes to avoid before you consider borrowing, along with whether your DTI might be a concern. Checking these things before applying will give you an idea of whether you might prequalify ahead of time. You should also be aware that personal loans are not your only option and sometimes an installment loan can work for your situation. There are numerous options for borrowing in Canada and being familar with what those might be is to your advantage.

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When you’re willing to put in the work and educate yourself, you can often find ways to improve your personal finances and situation. It’s important to understand that unless you have a winning lottery ticket or inheritance, it’s usually up to you to improve your situation. Read through the tips and advice at GoodCheddar to find ways that you might be able to fix or improve your finances so you can start saving, and you may find your hard work pay off.