Financial stress, and strategies to reduce it

The last couple of years without a doubt have taken a toll on both the mind and wallets of all Canadians. With Inflation being at a 40-year high, rising interest rates, and the global pandemic, the road to financial and economic recovery has been about as smooth as the roads that we have here in Winnipeg. I can confidently say that Canadians are stressed out when it comes to their finances.

While many of the Factors that cause financial stress are external and largely uncontrollable, there are several ways to mitigate it. Here are a couple of strategies that you can utilize to help eliminate some of the stress associated.

Focus on what you can control.

There are many aspects of life that we can control, Inflation, geopolitical instability, and the economy are all aspects that we definitely cannot. Dwelling on these things is far more likely to do much more harm than good. Instead, you should Focus on what you can control and make SMART (specific, measurable, achievable, realistic, and time-based) goals to help elevate some of the stress associated.

Consult with your financial advisor

Uncertainty is one of the underlying causes of financial stress, and meeting with your financial advisor can help eliminate a fair amount of that uncertainty. It is evident that a lot has changed within the last couple of years, and so have the financial goals of clients. Sitting down with your financial advisor gives you the ability to re-align your goals with your financial situation giving you a clear picture of where you need to go and more importantly, how to get there.

Be strategic about reducing debt

Not all debt is the same, believe it or not, there is such a thing as good debt. Take for example The balance owed on your mortgage that amount could be considered to be good debt because the house has lasting value as an asset and provides the potential to increase your overall net worth. Going into debt over one’s education could also be consisted to be good debt because the initial investment provides the ability for increased income in the future. On the other hand, bad debt is debt incurred that provides little to no increase in future value, take for example that new car you have had your eyes on. Chances are that “ Asset has depreciated by 15-20 percent of its purchase value within the first year.

The Last Word

Financial stress is an inevitable part of life, by focusing on what you can actually control, being strategic about reducing your debt load, and consulting with your financial advisor you are taking the appropriate steps to reduce your financially related stress, While I can’t promise that these strategies will eliminate all of this stress related to your financial situation, they are guaranteed to help.

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- Mitchell Cathcart,  Marketing Assistant, Kondwelani Kalinda, Licensed Assistant & Financial Planning Associate and Grant White, Portfolio Manager at Endeavour Wealth Management with iA Private Wealth, an award-winning office as recognized by the Carson Group. Together, Endeavour Wealth Management provides comprehensive wealth management planning for business owners, professionals and individual families.

This information has been prepared by Mitchell Cathcart Marketing Assistant, Kondwelani Kalinda, Licensed Assistant& Financial Planning Associate and Grant White, Portfolio Manager for iA Private Wealth and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces in which they are registered.  

iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.

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