Did you know that nearly 44% of Canadians are living paycheque to paycheque?
If you systematically find yourself counting down the days to your next paycheque, you’re not alone. Common as this situation might be, it should be avoided. Here’s why and how to do it.
1) IT’S A SOURCE OF FINANCIAL STRESS
LIVING PAYCHEQUE TO PAYCHEQUE MEANS YOU HAVE NO RECOURSE IN CASE OF A SETBACK, LAYOFF OR EMERGENCY. THIS MEANS THAT ANYTHING FROM A SURPRISE CAR REPAIR TO AN UNFORESEEN MEDICAL ISSUE CAN SPELL FINANCIAL DISASTER. FOR 44 PER CENT OF CANADIANS, HAVING THEIR PAYCHEQUE DELAYED BY A WEEK COULD MAKE IT VERY DIFFICULT TO MEET FINANCIAL OBLIGATIONS. THE BOTTOM LINE IS THAT LIVING LIKE THIS IS A SERIOUS SOURCE OF STRESS FOR MANY PEOPLE.
2) IT’S BAD FOR YOUR HEALTH
BECAUSE OF HOW STRESSFUL THEY ARE, PERSISTENT FINANCIAL WORRIES CAN LEAD TO SERIOUS HEALTH ISSUES. STUDIES REPORT THAT EVEN PEOPLE IN THEIR TWENTIES CAN EXPERIENCE HIGH BLOOD PRESSURE AS A RESULT OF UNRELENTING FINANCIAL STRESS. IN ADDITION, THESE HIGH STRESS LEVELS HAVE BEEN SHOWN TO MAKE IT MORE LIKELY FOR PEOPLE TO ADOPT UNHEALTHY HABITS IN AN ATTEMPT TO COPE, SUCH AS DRINKING, DRUG USE OR SMOKING—HABITS WHICH ARE ALSO COSTLY TO UPKEEP AND CAN TRIGGER AN ONGOING CYCLE OF ADDICTION.
Debt-related stress has also been linked to an increased likelihood of developing mental health issues such as anxiety and depression, which can have far-reaching negative impacts on many aspects of one’s life.
3) IT’S BAD FOR YOUR CAREER
The consequences of overwhelming financial stress can interfere with your ability to work. Many people living paycheque to paycheque would face financial disaster should they lose their job. This means any problems at work are likely to exacerbate your stress further, sending you into a vicious cycle.
HOW TO GET YOURSELF BACK ON TRACK
The first thing to do is to get a clear picture of your financial situation. Track your expenses and identify areas where you can save money (by preparing meals in advance or cutting down on coffee shop visits, for example).
Second, you should contact a licensed insolvency trustee to work out a debt management strategy. They can help you close the gap between your income and your debt obligations while working out your options for becoming debt free. There are many personal debt and corporate debt options to work through.
TRUSTWORTHY DEBT HELP IN OTTAWA AND EASTERN ONTARIO
GETTING OUT OF A DIFFICULT FINANCIAL SITUATION REQUIRES A LOT OF WORK AND DEDICATION, BUT YOU DON’T NEED TO DO IT ON YOUR OWN. THE LICENSED INSOLVENCY TRUSTEES AT D. & A. MACLEOD COMPANY LTD ARE HERE TO HELP. CONTACT US TODAY FOR A FREE CONSULTATION AND START YOUR JOURNEY TOWARDS FINANCIAL INDEPENDENCE!