Today is ‘Blue Monday’ and it’s named as such because it’s supposed to be the most depressing day of the year, brought on by a few different factors. 1. It’s the middle of January; dark and cold 2. It’s the week that people generally start giving up on New Years resolutions and 3. Bill come due after Christmas
This year it may be number three that’s bumming out most Canadians because One-third of people say they are no longer able to cover monthly bills and debt payments, which is up 25% from a similiar survey three months ago. Half of respondents are saying that they are within $200 of not being able to pay their bills. Couple that with a potential interest rate hike from the Bank of Canada in 2018 and you can see a lot of struggling further as it will restrict cashflow in most households. What’s your cashflow like? The average home has $631 left over after monthly expenses and if you are below that average you likely will feel a rate hike more than most. 70% of people say they’ll spend more carefully in the face of an interest rate hike but almost of half of the same group survey’s (48%) say they will need to go further into debt this year to cover costs. The lesson? if you can, trim the fat on monthly expenses and increase your monthly cashflow to compensate for another expensive year.