Canadians are facing a ‘financial storm,’ and experts say it’s time to plan ahead

globalnews.ca:

Canadians are continuing to feel the pinch on their wallets with inflation, interest rates and cost of living creating an “intensifying financial stress storm,” according to a survey by the National Payroll Institute.

The survey of 1,500 working Canadians, including 81 per cent who are full-time workers, found the number who considered themselves financially stressed has jumped by 20 per cent in the past year to 37 per cent overall.

According to NPI president Peter Tzanetakis, the organization has done surveys since 2014 and found reducing debt, saving more, and spending less are what helps determine if individuals are either financially “comfortable, coping or stressed.”

“There’s a financial storm that’s brewing and it’s really gained a lot of strength in the past year,” he said in an interview.

The NPI report suggests saving money is more difficult now than at any point in the past 10 years and 63 per cent surveyed said they are spending their entire net pay to “keep their heads above rising waters,” with another 30 per cent spending even more than that — meaning they’re taking on debt or dipping into savings each pay cycle.

The survey goes further, finding that 66 per cent of those who consider themselves “financially stressed” are living paycheque to paycheque and 50 per cent are feeling “overwhelmed” by their debt.

With Canadians facing such strain, personal finance expert Rubina Ahmed-Haq says people can consider various options including consolidating debt but also looking at what costs can be cut, including delaying a home renovation or family vacation.

“You can feel a little bit better about your cash flow and you’re not going into more debt because oftentimes when you take on big projects that can become a lot