According to a new study by the CGA Association of Canada, 1/3rd of Canadians are living paycheck to paycheck 🙁 The consensus was that the people surveyed believed their incomes were not “keeping pace with the cost of living.” Sigh (-_-;) If only they understood how to hedge their expenses against inflation protected investments like consumer staples that have a history of growing dividends faster than CPI such as Coke, McDonald’s, Johnson & Johnson etc, or real estate assets like commercial or agricultural land, then they would probably be in a better financial situation today.
The report discovered that only 3 out of 10 households believed accumulating wealth is a very important priority. Just like almost anything else in life, you get what you put in. I believe if you focus on your own personal finance and make economic prosperity a personal goal then chances are pretty good you WILL save and build wealth 😉 I bet if 10 out of 10 Canadians viewed being rich as a priority we would have less poverty and a higher savings rate overall. Since almost a 3rd of our population never or almost never have any money left after paying the bills it would be very difficult for the Bank of Canada to increase interest rates, which means if you have debt like I do then we won’t see our financing costs go up in the near future 😀 Leveraging cheap money hasn’t failed me yet in the past so I will continue doing so for now rather than pay off my debts 🙂 I’m currently borrowing to invest in more farmland. Globally this asset class is growing very fast, even in the UK.
I recently sold $5K in my TFSA to add to my farm fund. Will have to update the numbers later. I also got a letter in the mail last week from my credit card company giving me a 1.9% interest rate for 6 months on any loan transfer 😀 I plan to get another $5K out of that deal. Also I created a new page about investing on my blog relatively recently.
Random Useless Fact: Karma can be cruel.