Are Your Finances Scaring Your Pants Right Off of You?
One of This Week’s Headlines; Nearly half of Canadians are within $200 of financial insolvency: poll
Besides being a headline to unnerve you as a Canadian, it is only one in a succession of headlines over the years.
2017-05-08 · More than half of Canadians are living within $200 per month of not being able to pay all their bills or meet their debt obligations, according to a recent Ipsos survey.
2016-09-07 · Far from being confident about a comfortable retirement, 48 percent of the 5,600 working Canadians surveyed by the Canadian Payroll Association
2012-09-06 · The survey by the Canadian Payroll Association found 47 percent saying they would be in dire financial straits if their pay were delayed as little as a week. (Globe and Mail)
Remember these headlines are only from this decade; think back to the financial meltdown in 2007 and 2008.
Is our financial life going to get any easier in Canada? No!!
Recommendation- Tough Love
The solution serves you up some of your own “Tough Love.”
Over the years, I have talked about investing in real estate as part of your solution to your economic stability.
The current federal government has made the mortgage rules tougher for the average Canadian. Has this improved the financial woes of most Canadians?
No; it has not.
This week CIBC a major Canadian bank called for relaxing the Canadian mortgages rules; below is a chart that helps you understand why.
When you look at the chart below, it demonstrates an interesting point no matter how tough Canadians financial situation is the chance of Canadians defaulting or walking away from their mortgages is very low.
What this means is real estate ownership is one of the best vehicles for your tough economic love.
I have often said; even though real estate ownership helps you earn a return on your investment through appreciation, mortgage balance paydown and if you are renting part of your real estate portfolio return comes from positive cash flow.
You only need one of the three return on investment options to set your financial foundation.
You should look to principal paydown of your mortgage balance as a sure fired way of forced savings; tough love way of savings.
Message to Mr. and Mrs. Government
Stay Out of Our Bedrooms is something we can all agree with when talking to the government; let’s take this one step further and ask the government to get their hands off our ability to have homeownership. (Read more on politicians not having your best interests at heart; Politicians; How They Continue Exploiting Two Things)
The statics have proven over the years the Risk is low for lending institutions, the different levels of government and the people of Canada, owning real estate is not a financial burden for most; it is tough love and makes us more financially responsible as Canadians not less.
Making mortgages rules easier helps each Canadian become fiscally smarter, it also helps create good-paying jobs through the construction, trades and renovation industries.
In Canada we are letting the real estate tail wag the dog; even though Vancouver and Toronto are important Canadian housing markets there is much more to our country than these two markets.
As Dorothy from the Wizard of Oz said; “There is no place like home.”