How to Survive and Even Thrive in Uncertain Economic Times- Canada

"History shows that you'll make up 80% of your bear market losses within the first year of the recovery" (Money, November 2008)

These financial principles can help you weather even the worst economic storm.

Stay focused on your financial goals. If you’re feeling nervous about your investment choices, remember that historically, investors who invest consistently, whether the market is bullish or bearish, reach their long-term goals.
The best way to ride out the fluctuations of the stock market is to maximize the dollar- cost-averaging – investing a certain fixed amount consistently regardless of the ups and downs in the market.
“History shows that you’ll make up 80% of your bear market losses within the first year of the recovery” (Money, November 2008)

Slash and burn bills where and when you can.
To determine dollars available for expenses and savings, write down your gross income, subtract your taxes, (CPP, EI and income taxes) and subtract what you pay for your group health, group insurance coverage and group RRSP/Pension plans.
What most people do that gets them deeper into financial problems: money comes into their chequing account, they spend it, and at the end of the month there’s nothing left.
Of course they don’t accomplish their financial goals to save or set up an emergency fund.

Here’s what they should do instead. On the day the money hits your account, have 10% automatically transferred to your savings account.
That way you won’t be tempted to spend it.

Keep good credit. Preserve and protect your good credit at all cost.
To keep your all- important credit score attractive, pay your bills on time, limit the number of credit cards you have, and don’t be tempted to finance big-ticket items.
If you are having trouble keeping up with your credit card payments you might consider consolidating your high-interest revolving debt into a single fixed- rate loan.
This could lower your monthly payment and set a debt freedom date.
Note: Try to avoid bankruptcy if at all possible!
Not only is a bad for your credit it is a black mark on your character, no matter how prevalent this option has become, it is easier to get into than to live down.


Reduce your exposure to risk. In uncertain times, having good legal protection in your pocket makes sense when trying to limit your vulnerability.
Consider a company called Pre-paid Legal Service, a low-cost program that gives you and your family access to legal services in the event you need it.
This service also includes Will preparation and annual Will updates among its many benefits.

Increase your income. Adding a second or even a third income short-term is a great way to get through the crunch.
Or you could join the hundreds of thousands of new business owners that are seeking to take more control of their incomes, and start a low-cost business of your own..
There are many low-cost businesses that can be started for less than $100.
As well, this extra income, no matter how small, will help you get back into your investment planning goals for educating your child, taking that long awaited vacation or retirement planning.

Yvonne Finn helps her clients to plan and execute financial strategies and solutions that will enable them to achieve their goals of debt – freedom, financial independence and leaving a legacy of a financial “family tree” that is much more secure than they found it.
The first step is the plan, which is created by a complimentary and customized financial needs analysis for each client.
Want to see what yours looks like?

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