Get our house in order

It probably comes as no surprise that many Canadians have a spending problem. But a recent survey by accounting management firm MNP shows how close we live to fiscal chaos.

Among the telling stats: • Over half of Canadians say they are less than $200 a month away from not being able to pay their bills or meet debt obligations; • 60 per cent don’t fully understand the impact of rising interest rates on debt repayment; • Almost half say they are concerned about debt; • Four in 10 regret the amount of debt they have accumulated in their lives.

Spending has become alarmingly easy. You can shop in store, or from the comfort of your couch. Tap a debit or credit card, and the money magically flows. You can even pass your smartphone over a terminal and make a purchase.

Interest rates continue to hover at near historic lows, which lessens our fear of borrowing.

Despite our spiralling debt and lack of financial knowledge, very few turn to professional help. We like to believe we can handle it. Many of us can’t.

Financial experts will all agree on one thing: we can’t go on like this. It’s time to get our personal financial house in order. Begin with a monthly budget. An examination of what you bring in, and what goes back out, is a great starting point.

Perhaps we should look to the past for prudent financial wisdom. In the early 1800s, Thomas Jefferson said: “Never spend your money before you have it.” Two hundred years later, that’s still sound advice.

Waterloo (Ont.) Region Record