Rising inflation and rising interest rates are causing concern among many families who fear financial difficulties in the coming months.
However, some small steps taken now can make a big difference in family wallets.
According to Sophie Desatells, a licensed insolvency trustee at Raymond Chabot, here are five tips to help you prepare for your financial crisis.
1. Reduce debts at the highest interest rates
It is important to pay off debts as quickly as possible, but especially with a high interest rate.
Paying off premature accounts will make it easier to control your finances.
2. Postpone large expense
Want to renovate a home? It is better to wait for a better financial context or extend it for several years before starting major spending.
3. Give priority
Creating a budget is always important, but in the context of financial uncertainty it is even more important because it allows you to establish your priorities and avoid unnecessary expenses.
4. Make yourself a safe cushion
You do not want to be frustrated if you cannot get the right pitch so invest in a good capo.
By having savings, families are less likely to incur unnecessary debt at higher interest rates.
5. Review your investments
Investors may want to make an appointment with their financial advisor to make sure their financial needs and realities are still being met.
Watch the full interview in the video above.