The Saturday Weekly Review

Could you survive a recession in Canada? : The Saturday Weekend Review #137

The Saturday Weekend Review logo-recessionEVERYONE VIEWS MONEY DIFFERENTLY

 

Whether the economists believe Canada is in a recession or not the fact remains that we should be prepared.

If you’ve noticed that your pay rise has been overlooked or even so slim you’d hardly tell a difference in your bank account, you’re not alone.

Even though Canada added 12,000 jobs in August the unemployment rate went up and sitting at 7.0 percent. This happened because there was a large drop in part-time jobs. These are the jobs that most people rely on for extra income or to make ends meet.

I read an article about the so-called “Recession” in Canada presenting what questions would most often come up over and over and what expert economists had to say about them.

In Canada we’ve been through 12 recessions since 1926 which is when data started being recorded. It is said that we go into a recession about every 7 years which is why we shouldn’t overlook the obvious, our own finances.

A recession is a BIG deal and although I’ve only been in Canada since 2007 I was here to feel the financial crunch of 2008 which was big for us. My wife’s investments like everyone else took a nose-dive but thankfully recovered over the years.

Luckily of us we were only renting a small room at the time and our expenses were very low with hardly any bills to pay. We bought our first house shortly after when the market was low which in my opinion was the best time for us to buy.

The word recession should be enough to scare the pants off anyone living anywhere not just in Canada. Wait a minute! What is a recession anyways? We all hear the word but do we really know what it means.

In Canada, a recession is generally defined as two consecutive quarters of negative economic growth (that is, contraction) in Gross Domestic Product (GDP).

What intrigued me in the article was not so much why we were in a recession or what a technical recession was all about BUT how to survive a recession if it were to happen.

There was a point that said “Advanced Preparation” and just those two words alone are worrisome. You mean we have to prepare for this recession in advance? Well, sure you do especially if you are heavily invested in the markets.

That makes sense because you don’t want all your eggs in one basket which we should have all learned from the last disaster in 2008-2009. So, aside from diversifying your portfolio what else should you do to prepare for a recession?

Diversify to include assets that are better insulated from market dips.-Avery Shenfeld, managing director and chief economist at the Canadian Imperial Bank of Commerce (CIBC).

The problem is not everyone has the extra-income to adjust BUT there are still ways you can sock money away and strengthen your financial stance. It’s also not all about stashing cash either. Being uninformed is the last thing I want after working so hard to build up our financial empire for our little family.

I call it an empire because this is our livelihood and now we have a son who we are working hard for. So what else can you do to prepare for a recession besides diversifying your investments and protecting your stocks by not being over-exposed?

My first reaction was, how about we all just spend less, save more and we won’t have to worry so much when and if the time comes. There’s more to it than that though.

 

Recession proof your finances

 

Below are some of the tips that were suggested in the article however these are tips that we should live by every day and not just react to before a recession.

Budgeting has always been our top priority because without one we wouldn’t be 100% debt free and have the ability to save as much as we have. That however can disappear in the blink of an eye if we are not careful.

  • Have a fat nest egg so it will help you through the rough spots during your retirement years.
  • Emergency Savings are always important and this is why having 6-12 months of your monthly expenses saved up is very critical. It’s not a joke nor do you have time to build your account when and if a recession hits. You must start thinking about it now and if that means you save a few dollars here and there each month, something is better than nothing.
  • Watch your debt load, which means stop adding to it. Start reducing your debt, pay cash for what you need and hide your credit cards. We use ours but pay them off every month just so we can get the rewards points.
  • No job is secure so keep building your skill level to build your resume. If you lose your job when a recession hits having a variety of skills available is a huge asset.
  • Keep borrowing to a minimum if at all because the more money you owe the worse it may be especially if you were to lose your job. What if the interest rates go up? Can you afford to pay back your debts?

Some Canadians may think this is all big hype but others are getting ready because they don’t want to be the last one standing if and when a recession hits us full force. Others may believe we’ve been in a recession for a long time but no one wants to admit it. Whatever the case, all I can say is look after yourself because no one else will.

What else should people do to prepare for a recession and what are you doing to make sure you cover all of your financial bases?

 

CBB Week At A Glance

 

Well, vacation has come to an end but we had a wonderful summer holiday with my parents and visiting our relatives around Ontario. This past week I started back at my part-time job so I’ve been busy getting things prepared.

Friends of ours made their way to the Canadian National Exhibition (CNE) and although we keep saying we will go every year we never do. My plan for next year is to take a day and take the family. If anything the fun rides and crazy food will be worth it! I did hear it’s not cheap so this will be an outing we will save for in advance. I’m not sure how much but we have an idea based on what our friends said they spent.

I’ve also noticed the leaves have started falling in our area so I know soon enough I will have to clean-up the yard and put everything away for the season. Although the Fall looks nice it’s hard to say good-bye to summer.

One of my favourite times of year is the Fall because of all the beautiful colours. It’s a great time to get photos as well which I like to do when I have a spare second. Like that ever happens. Most often I need to make the time or just bring the camera when we are out enjoying family walks. I’m not the King of multi-tasking but I try my best to get what I need when I need to.

Last year I didn’t get a chance to decorate outside like I wanted to for Christmas so my plan is to make sure I get out there early enough before the snow comes. I know, you didn’t want to read that word but we all know it’s coming after a short Fall season.

Other than that we’ve been busy getting the invitations party decor ready for our sons upcoming first birthday. It will be low-key but even then it still costs money. Next year will be better when he understands a bit more and hopefully by then he will have more friends to come around to enjoy the festivities along with the family.

How was your week?

 

Published This Week

 

Just in case you’ve missed any of my blog posts this week I will share them all below.

If you have a question that you would like to ask Mr.CBB fill out the Contact Mr.CBB form on the Home Page and send in your questions.

If you want to share a story via a Fan Question only please ensure that there is minimum 500-1000 words and details… we love details!

Right now CBB is posting Tuesday (Grocery Game Challenge) , Thursday (Personal Finance Post), Saturday (Personal Finance and Weekly Wrap-Up and a recipe on Sunday!

 

Budget Brags

 

Submit your Deal or Brag:

Saving money while grocery shopping is essential in the CBB family and that’s why we share our grocery shops every week in The Grocery Game Challenge 2015.

What I love the most is when my fans share their amazing shops with me whether it be groceries or other deals they find at a garage sale, online or freebies!!!

If you have a brag that you want me to share email me at canadianbudgetbinder@yahoo.(ca) < remove brackets) or fill out my contact form by Friday each week to have your brag considered for the Saturday post.

Jens garage sale deals Aug 20, 2015

Hi Mr.CBB and Fans,

This are the deals I found at garage sales last Saturday…

  • Mega Blocks table $2
  • Plaid shorts $.50 ($.25 each)
  • Curved change pad covers $1.00 (were asking $1.00 each)
  • Sponge Bob Square Pants Movie on DVD $1.00
    Total $4.50

 

Making A Difference (MAD)

 

Note: If you are a personal finance blogger (anywhere around the world) and would like your blog to be MAD featured simply drop me an email and I’ll explain the process to you.

This is my way of giving back to the personal finance community through networking and sharing knowledge with my fans.

Dad is Cheap Subtitle

Hi CBB Readers!

My name is Vic and I just recently started a blog earlier this year called Dad is Cheap. You can also reach me on Twitter @DadIsCheap.

My daughter Addie was born in April 2014 and she completely changed my world. Before she was born I couldn’t be bothered with the finances.

While my wife and I weren’t terrible with money, we barely budgeted and didn’t really plan for our future. Having enough money to go out with friends and buy the latest gadgets was good enough for me.

Having a daughter completely changed my mindset.

I’ve since made it my personal mission to do everything I can to ensure a safe and secure future for my family. To me that means hustling and absorbing as much information on fatherhood and personal finance I can get and applying it to our lives.

We have since gotten on a budget, started side hustling, reduced expenses, and invested towards our family’s future. Even though we haven’t gained much more income since my daughter was born, we feel so much wealthier now and worry less about our finances.

I created my blog to share what I’ve learned about personal finance from the perspective of a new father. While we all can’t all be filthy rich, there are plenty of things that anyone can do to save and earn money.

I’ve written about saving on cell phones, our budgeting successes since our daughter was born, and what I wish I would have done financially when I was younger. Through my blog, I hope to show people that you don’t have to be a millionaire to grow your wealth, you just have to be a little more aware of your money.

And hopefully, when my daughter is older she can read my blog and see how much better of a person I became since she was born.

Vic

 

Top Recipe

 

lemon squaresFood  and grocery shopping is a BIG part of CBB because food is a large part of the budget which people struggle the most with.

If you are someone who would rather buy convenience meals or products consider cooking homemade meals or baking from scratch.

Not only will you save money but you will be proud of what you accomplished and you’ll see that from the smiles on those you feed.

If you don’t already know I have a second Facebook page called The Free Recipe Depot where I share recipes from other Food Bloggers from around the world.

I also share recipes on CBB once a week on Sundays either made by me or my in-house home blog cook Nicola Don!

This week our Top Recipe Pick goes to Diane over at Canning and Cooking at Home for Mom’s Lemon Squares. Don’t they just look gorgeous? I’m going to be looking into testing out this recipe very soon.

 

Editor’s Pick

 

Every week I will pick a blog post of the week from around the web that I found interesting and want to share with you and an Editor’s top blog post pick.

Editor’s pick (That’s me Mr.CBB) this week goes to… Femme Frugality who shared her Golden Rule of Budgeting.  When I read her post I agreed that many people budget one amount but spend far more than that number. We underestimate what we will spend so it’s always best to budget more than you think you will need. It’s better to be safe then in debt.

 

How people find CBB

 

Every week I get thousands of people visit Canadian Budget Binder because they did a search online and found my blog. Keep in mind any spelling errors below are because I share with you the exact way they typed their search engine query to land on my blog.

  • Do Dollar Store Pregnancy Tests Work?– Our son will be 1 years old very soon and that Dollar Store test verified 4 times YES my wife was pregnant.
  • Wives that spend too much– Sounds like their needs to be a Facebook Group started for this one, lol.
  • Does Value Village charge tax- You bet they do!
  • Is the Scanning Code of Practice a Law?– No, it is not a law which means stores do not have to follow SCOP if they don’t wish to.
  • Lottery winners going broke– Oh the irony!
  • Are guys who cook sexy?– I don’t know, are they? 😛

Don’t forget to subscribe to my daily blog post by entering your email address on the home page and verifying the subscription email once it is sent to you.

-Mr.CBB

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7 Comments

  1. Thanks again for allowing me to be featured on your Making a Difference series! I greatly appreciate your commitment to help others out in the blogging community. Keep up the good work!

  2. The points on recession proofing your finances are point on! I especially loved the items about having emergency savings and that no job is recession proof. Even if you think you have the most secure job in the world, all that needs to happen is hard times fall on the company and all of a sudden everyone is expendable. Which then makes your emergency fund much more important.

    We are still working at building our funds up to a level we need them but we are getting close.

  3. My friends are living in Canada and they are somehow affected by the recession as some of them lost jobs. They’re glad that they have savings to back them up during the time they are unemployed.

  4. Preparing for a recession would be much like preparing for any kind of thing that could hurt the finances. The powers that be don’t want to even say the ‘R’ word much less the big ‘D’ word!! We’re on a fixed income so raise is not really in our vocabulary to put it politely. The only thing our credit card is used for these days is any online orders and it’s paid off right away. The last thing ordered here was the virus program for the computers. Luckily Staples had it on sale 2-3 weeks before we needed to install the new one and we got a 3 pack to handle all three computers inhouse. The older boy, AKA the family tech support did the install on mine and his fathers. His brother managed his own. We still roll a small amount over from checking to my savings account as our emergency fund every week. It may not always stay there long but it’s there.
    I will be putting up our Christmas lights sometime in early Nov. while the weather is warmer. It’s just lights around the front porch windows but I’ll plug them in the night of the local Santa Claus parade and then unplug until the first of Dec. when they go into the timer we have for them.
    Those lemon squares look good!!! Have a good long weekend!!!

  5. Thank you so much for the feature! I can’t profess to know much about the Canadian economy, but the part time job aspect is interesting. Here in the US, we had the opposite happen after the recession. Our unemployment numbers started going down, but for a while it was largely due to part time jobs. The people working them largely weren’t hustling; they were underemployed, which is an even bigger problem here because our full time employers are traditionally the way we get truly affordable health insurance and other benefits.

    Can totally identify with Vic… Our finances got a whole lot better after kids, largely due to the drive to earn more after them!

  6. I agree with the idea that no job is permanent. I like the suggestion about keeping you skills sharp and staying informed about the latest developments in your industry. Great Article! Lots of info about recessions without the scare tactics.

    1. Thanks Cynthia… yes no scare tactics but certainly a reminder that recession or not we have to be ahead of the game. No one cares more about our money than we do. Thanks for your comment. Have a great weekend.

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