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.
