Feeling anxious about rising inflation? Interest rates? Here’s what to do

Many Canadian are feeling more anxious and fearful when it comes to planning their finances as compared to previous years, according to financial planning experts. 

As Canadians navigate their way through higher interest rates and rising inflation, many are feeling more anxious and fearful when it comes to planning their finances, according to some financial planning experts. But, there are ways to deal with the uncertainty by becoming more financially literate, they say.

“One of the most important things to do is to start with writing down and making that budget, looking through your expenses over the last little while, looking at how much you have and also, how much you owe and how much you own would be helpful,” said Jackie Porter, a certified financial planner.

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Porter says this is the year to reflect on whether past budgets still hold up since so much has changed for people in 2022, post COVID-19 lockdown.

“Maybe people weren’t spending as much in previous years…our finances were pretty much in lockdown for two years (because of COVID-19),” she said.

Now that things are opening up again and people are going out more or travelling abroad, Porter said now is the time for a “reality check.”

We need to “check on our finances to see what we can afford and what we value,” she said.

“I don’t want to be the financial Grinch…I’m just really trying to encourage people to think about how to spend less money…So, maybe instead of splurging on a dinner out, maybe have dinner in someone’s backyard.”