BY MONICA MAZUN
I don’t know about you, but when I hear the words “fun in the sun”, my mind is automatically transported to a white sandy beach or a scenic European town – basically, anywhere but here. Which got me thinking
– why is that? Our summers are hot, our country is beautiful, and there’s plenty to explore around here, where we don’t have to contend with high foreign exchange rates. That’s why this summer we’re switching things up a bit and giving ourselves – and you – three reasons to stay put and support local tourism.
1. Spend prudently. Let’s face it: the economy has been through it. Sure, Canada might achieve a soft landing without spiraling into a recession, but that’s not necessarily how it feels for a lot of Canadians. Even as inflation stabilizes, key economic indicators such as employment data and wage growth could push further rate cuts into the latter part of the year. With the possibility of rates continuing to stay higher for longer, paying off debt held at high interest rates might make more sense than using that money for a trip abroad.
2. Practice loud budgeting. I’ve got to give credit where it’s due, and Gen Z might actually be onto something here. This trend of “loud budgeting” encourages people to be honest about their finances and to decline purchases or events that they can’t afford or simply don’t want to put their money towards. In a society influenced by social media or “doing it for the ‘gram” (the kids still say that, right?), it’s empowering to say “no” to something you can’t afford without being embarrassed about it. Being transparent with friends and family about how you choose to allocate your money can also help reinforce the 50-30-20 rule: put 50% of your money towards needs, 30% towards wants, and 20% towards savings. When it comes to savings, talk openly with your advisor to reach your goals and take advantage of online budgeting tools and apps that help make saving easier. (Don’t have an advisor or need a second opinion? We’ll be here all summer!)
3. Take a step back to relax and reflect. The slowness and ease of summer provide great opportunities for you to take a long hard look at your investments and goals, whether personal or business. Take the time to meet with your advisor to revisit in detail your financial plan and big picture. Review the market and explore whether you should make changes to your investment strategy at the start of the easing cycle. Are you saving enough for your goal of starting your own business, paying for a wedding, or even installing that pool next summer? And perhaps most importantly, are you still on track to reach your ultimate “constant vacation” in 20 or 30 years – retirement?
There’s nothing wrong with exploring the great big world out there. But there’s also nothing wrong with taking a pause to make sure you’re where you need to be, whether it be financially, mentally, or recreationally – enjoying the many great tourism experiences that are right here.
All material has been prepared by Monica Mazun, who is an Associate Investment Advisor with the Mactaggart Hryn Team at Richardson Wealth Limited. The opinions expressed in this report are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Richardson Wealth Limited or its affiliates. Richardson Wealth Limited, Member Canadian Investor Protection Fund. Richardson Wealth is a trademark of James Richardson & Sons Limited, used under license.
