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Economy

Take Back Control: How to Spend Your Money with Intention

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When you’re up against economic giants like inflation and wage stagnation, a small splurge seems insignificant. So, you say “why not” to the lattes, the takeout dinners, and the concert tickets to your favourite artist.

Let’s set the record straight — the occasional splurge won’t make or break the average budget. But the belief that none of your spending matters is dangerous. Apathy can make you ignore the warning signs, focusing on the thrill of indulging in your wants rather than building a strong financial foundation.

If you constantly spend money, small financial decisions can have a bigger impact than you realize. They add up to an enormous bill that you might not be able to cover. Next thing you know, you’re living paycheque to paycheque, without savings, and worried about the future.

5 Ways to Stop Spending Money on the Little Things

Having the discipline to say no to these small, everyday splurges is tough. Here are some simple, no-nonsense ways you can ignore the temptation to splurge.

1. Create a Budget

A good budget will make room for fun spending. Giving yourself permission to indulge in a little treat now and then can make following the stricter elements of your budget more tolerable.

Figuring out how much you can afford to splurge is easy when you follow the 50/30/20 budget. It reserves 30 percent of your take-home pay for the fun stuff, provided you can cover your essentials and regular bills with 50 percent of your net income.

You might have to tweak these percentages to reflect your unique lifestyle, but this budgeting method provides you with a basic template.

2. Automate Savings

Automate your savings as soon as you get paid. This eliminates any chance you might accidentally spend the money earmarked for savings on splurges.

Building an emergency fund is one of the best things you can do in the face of those big economic forces, like inflation and interest rates. Under inflation, everything costs more, including the unexpected, so your next surprise car repair or prescription may take a big chunk of change.

Many people supplement their emergency funds with lines of credit just in case their next emergency costs more than they have set aside. If you don’t have one already, check out a website like Fora. A Fora Credit line of credit may give you some peace of mind, knowing you have a safety net backing you up if approved.

3. Know Your Triggers

Everybody has their unique weaknesses. Whether yours is kitchen gadgets or sneakers, you need to know your biggest temptations. Naming your spending weaknesses can help you be more mindful in situations where you might be exposed to them. You can even start to avoid situations where you might be exposed to these triggers.

4. Be Aware of Technology

Today’s technology enables spending money. If you have a mobile wallet on your smartphone, you can pick up lunch on your way from a run, even if you forget your wallet. Your browser can remember your payment details, so you can purchase something with just one click.

If you can, delete these details from your phone and computer. Having to remember to bring your wallet creates a barrier to spending. It can give you enough time to reconsider what you’re buying.

5. Sleep on Purchases

Make it a rule that you can’t buy something without waiting at least 24 hours — whether it’s a small cup of coffee or a bigger splurge on clothes. Use this full day to contemplate if you really need this item. In most cases, the urge to spend will pass after a good night’s sleep.

Economy

Canada’s unemployment rate holds steady at 6.5% in October, economy adds 15,000 jobs

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OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.

Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.

Business, building and support services saw the largest gain in employment.

Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.

Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.

Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.

Friday’s report also shed some light on the financial health of households.

According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.

That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.

People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.

That compares with just under a quarter of those living in an owned home by a household member.

Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.

That compares with about three in 10 more established immigrants and one in four of people born in Canada.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Economy

Health-care spending expected to outpace economy and reach $372 billion in 2024: CIHI

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The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.

The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.

CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.

This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.

While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.

Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.

The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.

This report by The Canadian Press was first published Nov. 7, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

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Economy

Trump’s victory sparks concerns over ripple effect on Canadian economy

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As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.

Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.

A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.

More than 77 per cent of Canadian exports go to the U.S.

Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.

“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.

“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”

American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.

It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.

“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.

“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”

A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.

Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.

“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.

Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.

With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”

“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.

“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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