Latest Statistics on Financial Stress in Canada
Financial stress is on the rise in Canada. According to a new report by FP Canada, the Financial Stress Index found that 44% of Canadians say money is their primary source of stress. Other factors include personal health, at 20%; work, at 16%; and relationships, at 16%.
The numbers suggest the financial burden is a big deal. Yet, financial stress can sometimes be self-induced.
The good news is that 91% are taking steps to reduce stress. This includes 45% who actively track expenses, 38% who are paying down debt, 33% who are making a concerted effort to save more, and 30% who have created a budget.
Financial Stress Reality and Impact on Mental Health
Anecdotally, younger generations seem comfortable discussing money issues and money in general. However, long-held beliefs exist that financial burdens should lessen as we mature, as debt will be reduced, and income levels will stabilize.
Sadly, this isn’t the case for many who suffer in silence. This, in turn, can lead to unnecessary feelings of disappointment and embarrassment.
The reality is that many need help to keep up with the inflation, higher rates, and record debt levels that are stretching households. The silence that follows can be deafening. In a world where comparisons are everywhere, keeping up with Jones’ has become financially exhausting.
Many hold back because of the shame of not keeping up and anxiety over any thoughts of borrowing money. This can leave many hesitant to explore essential steps that could unleash financial opportunities to help alleviate stress and improve their financial situation.
How to Deal with and Overcome Financial Stress: Top 5 Tips
I use “MONEY” as the acronym to break down the options that could be explored.
- M – Knowing how much money you have coming in and what it is you are spending your money on puts you in the driver’s seat. Your net worth statement becomes your blueprint for financial success. However, it is essential to note that we all hit financial speed bumps, financial detours, and plans that are not carved in stone. The very fact you have a plan allows you to see where corrective action can be applied.
- O – Explore all your financial options to give you financial flexibility. If you own your home or have equity built up, you could decide to downsize, take out a HELOC (Home Equity Line of Credit), or, if you are over 55, investigate the benefits of the CHIP Reverse Mortgage. You could decide to use all three options in your lifetime. If you permit yourself to explore what is available, you might feel exhilaration instead of embarrassment, which is very empowering.
- N – Cash flow anxiety may be temporary, and becoming crystal clear on your needs versus wants can help you get through a rough patch.
- E – Having access to emergency funds provides financial comfort. A financial advisor can help you tuck a little money aside, grant access to a line of credit or apply for a credit card for emergency purposes only, or even tap into the equity in your home short-term.
- Y – When you take charge of your financial situation, it frees you up to do the things that give your life more balance and meaning. It allows you to say “yes” to new experiences, opportunities and challenges and reduces unnecessary stress.
Feeling you have come up short financially speaking is a limiting belief that can hold you back. These are your “golden years” right now. Permit yourself to live your best life. You don’t have to be asset rich and cash poor. You can be asset and cash-rich, and that is liberating.
Pattie – PLR@heb.ca
