Archive for February, 2010

I read in the Waterloo Region Record this past Saturday that the area’s unemployment rate has increased to 9.9%. Across Canada, the average is down to 8.3%. Obviously, the national figures are not great news compared to historic levels, but it is showing a positive trend. That Waterloo Region would be lagging behind was a bit of a surprise, and somewhat concerning.

As I flipped through other sections of the paper, I came across a report on house sales for January 2010 for the region. The paper is already lining a hamster cage, so I don’t have the precise numbers, but the headline was shouting all about the record highs for sales. I found myself even more confused. If so many people are out of work, who is buying these houses? The confusion of these mixed messages is a phenomenon that I have commented on before.

I meet with people in our Kitchener-Waterloo bankruptcy offices to discuss their finances. We talk about the state of their financial affairs and try to develop a plan to deal with their difficulties. What matters most to the people I meet with is not what is happening statistically across the country. What matters most is what is happening in their house. Period.

Here’s my suggestion: SHUT OUT THE NOISE.

Yes, you need to be aware if your company is closing down. Yes, you should be looking for ways to develop skills to keep yourself employed. However, worrying about things that are beyond your control is useless if you do not have plan of action.

Sit down with your partner and take a long hard look at your finances. How much money is coming in each month? Where does the money go? Are there ways to reduce expenses? Do you need to save up money for going back to school?

Develop a plan together and hold each other accountable to it. A budget is not something you look at once and throw away. It is a tool for setting goals and measuring performance.

Here’s one more thing to think about. The Office of the Superintendent of Bankruptcy publishes statistics on the rates of bankruptcies and proposals in Canada. The latest results, for November 2009, show rates above historic levels, but decreasing compared to recent months. No guarantees, but hopefully the worst is over.

If you want to talk about your situation, feel free to give us a call at 310-PLAN, or send us an e-mail.

In honour of the big game coming up this weekend, I present a special Super Bowl theme because I know there are lots of football fans in Waterloo region. For me, I am more a fan of crokinole than the pigskin.

Now that Christmas is becoming a more distant memory, businesses need a new angle to try to separate you from your hard earned money. Sure, Valentine’s Day is coming up, but the Super Bowl will do just fine for now.

This week you will be bombarded with messages that may cause you to ask yourself questions like: How can I watch the big game on my little old TV? How can I enjoy the game in my tired little rec room? What would it cost for a last minute flight to Florida (and ticket) to catch the game in person?

Let’s focus on the TV question. The answer retailers are looking for is that you need the biggest, latest high definition flat screen to appreciate the subtlety of the 350 pound linemen.

What it comes down to is temptation and separating wants from needs. I recently read a good article on this topic. Here’s my two cents:

Having a new television is not going to change your life for the better. If you have the money saved up and want to indulge, suit yourself. If you have to put the purchase on a credit card, maybe you should stop and think twice. Maybe think about three or four times, maybe more.

In meeting with people in our Kitchener-Waterloo bankruptcy offices, I see too many people who were not able to control impulse spending on credit. We are all guilty of it to some extent. Most people survive just fine until something else happens like having reduced hours at work or being laid off entirely.

The bottom line is that CASH IS KING. Each of us is in the best position to analyze our own financial resources. Each of us should pause and reflect before parting ways with our money.

If you find your debt situation overwhelming, feel free to give us a call at 310-PLAN. You can also send us an e-mail. We will discuss your situation and talk about all the options, including consumer proposals and personal bankruptcy.