This exploded yesterday on the news (which my new futon potato, BF, was watching), and on the internet after the articles were posted.
Household net worth dipped 0.6 per cent, or $34-billion, to $5.9-trillion, marking the first decline since the first quarter of last year, Statistics Canada said today.
It noted that liabilities, largely mortgages and consumer credit, increased, though the ratio of household credit market debt-to-personal disposable income fell for the first time since early 2006, to 143.7 per cent. The debt-service ratio also fell, both due partly to an increase in personal disposible income. But debt-to-net worth rose after falling for four quarters.
Six in 10 Canadians are living paycheque to paycheque.
Fifty-nine per cent of Canadian workers say they would be in financial trouble if their paycheque was delayed by just a week – the same proportion as last year when the economy was still mired in a downturn, according to the poll of 2,766 people.
From The Globe and Mail: Canadians are deep in debt and Six in 10 live pay to pay.
I cannot stress the importance of the following and I am pleading with you!
- Trim your expenses, watch your budget and track your spending
- Pay down your debt as much as you can
- Save 3 months to a year’s worth of living expenses (a conservative estimate)
- Think before you buy: What may seem like a necessity, may not be one
I understand that the above is near impossible for many families, and I am not saying it’s easy as pie, or simply a question of cutting out your daily latte.
Some of these families (whom I know) are struggling because their husband/wife hasn’t found work yet, and they are short in their budget each month by $1000 – $2000, which is roughly a second income, and does not include saving.
However if you are a dual-income family, and what you make simply doesn’t cover your expenses, you need to build a budget, trim your expenses and track your spending.
You just simply have to.
There’s no other way around it, you need to know what you are spending so you can realize where you can cut back, or lower the frequency of. A banal example would be a $20 treat every 2 weeks of getting your nails done, consider going every month instead).
Just a girl trying to find a balance between being a Shopaholic and a Saver.
I cleared $60,000 in 18 months earning $65,000 gross/year.
Now I am self-employed, and you can read more about 
It wouldn't surprise me if a similar figure (or higher) is true of the UK. I know a few young adults around my age, earning about the same as me, but who are living from payday to payday and moaning not even halfway through the month that they don't have any money! I could be one of the few young people who are debt-free and with a large amount of savings in the bank. Whilst I'm lucky that living with my parents has allowed me to save a lot, I still have bills to pay, rent for my room, my car to run, and still go out occasionally without running out of cash. Even then I'm looking at ways to save money! (Hence I'm reading your blogs and trying to direct my debt-ridden colleagues in your direction!)
Man that's really scary.
Yes, I do have an emergency/savings fund. I am all about financial stability which is why I'm trying as hard as I can to pay off all the debt as quickly as possible. I am in a social services field so that's why it takes a bit longer.
As for my family paying me back, that is not possible. They are not very financially stable, and part of the reason I live home rather than live with them is to help them as well.
Oh good! 🙂 Just checking.
Very unfortunate. For me, I live paycheck to paycheck, but it's because I'm paying off my debt. I'm living with my family to get out of debt as quickly as possible.
Just curious: Do you not have at least $1000 or something saved? It’s great that you’re doing it to pay off your debt, but what if you lose your job? Will you pay back your family?