Escaping the vicious circle of going paycheque to paycheque
Many Canadians are stressed out about money and feel it would be difficult to meet their financial obligations if their paycheque was delayed by even one week.
A new Statistics Canada study has found that most of us are struggling to make ends meet.
The situation is similar in other countries, including the United States, Australia and New Zealand.
Stressing about money creates all kind of problems. It makes people pessimistic and causes them to feel bad about themselves. It leads to declining physical health and mental health], alcohol consumption, relationship problems and poorer parenting, among other problems.
Most people aren’t comfortable financially because they spend too much and carry too much debt. Some of the reasons Canadians are in debt include no budget or poor budgeting, spending more than they can afford, impulse or addictive spending, abusing credit cards, missed payments, and the lack of an emergency fund.
How to reverse the trend?
The good news is that there are ways to reduce bad debt and become more comfortable financially. Researchers describe a number of ways to work toward financial wellbeing. However, what works for one person might not work for another, so figure out what makes sense to you.
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