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CIBC poll finds Canadians are wary of tackling big life changes as the cost of living rises

Canadians report a desire to jump start their life goals following the challenging years of the pandemic, but current economic uncertainties are holding many of them back, according to a recent poll by CIBC.

Many Canadians are feeling the pinch of inflation and rising interest rates on their wallets, says Carissa Lucreziano, vice-president of financial and investment advice at CIBC.

“We hear about rising prices everywhere these days,” says Ms. Lucreziano. “You’ve probably noticed that at the checkout, at the gas pump, or when the server brings the cheque at your favorite restaurant and you think, ‘Wow, that’s a lot more expensive than it used to be.’ "

So while more than 50 per cent of those surveyed by CIBC want to make big life changes, such as changing jobs, travelling, making a big purchase like a car or renovating their home, a majority have put those plans on hold because of financial factors or an uncertain economy.

That doesn’t have to be the case, says Ms. Lucreziano: When budgets are strained, more stringent decision-making around life goals can help you continue to make progress.

Everyone’s personal inflation rate is different

You want to understand the real effect of price increases and rising interest rates on your own expenses, Ms. Lucreziano says.

“Canadians really need to think about inflation and interest rates in terms of how they translate into higher actual costs on a monthly or annual basis,” she says. “That will help you make smarter decisions around planning for the short term.”

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Even something as simple as comparing grocery receipts month over month will show how much of an impact inflation is having on your budget. You can also do the same with your mortgage and lines of credit, she suggests.

It’s important to look at your overall budget and evaluate your needs versus your wants, she advises. That can include re-evaluating some of your spending habits, taking a look at subscription services you pay for that you no longer use, and being realistic about how often you dine out or go to certain paid events. CIBC’s budget calculator can help with this.

Don’t lose sight of long-term plans, even during tough times

Three-quarters of Canadians say they have focused on smaller, more easily achievable financial goals.

“When budgets are being squeezed, sometimes we can switch into survival mode and narrow our focus on what’s happening right now or the short-term priorities that are imminent,” Ms. Lucreziano cautions.

“But it’s also important not to lose sight of those important long-term goals like retirement or your children’s education. It can be tempting to put those off because the consequences are not immediate but if you can avoid borrowing from the future as much as possible, that’s important.”

Despite economic challenges and worries about their finances, 63 per cent of the people surveyed by CIBC have not sought or do not expect to seek advice from a financial professional on current or future major life events.

However, many respondents acknowledged that they would benefit from better advice when it comes to investing, retirement and estate planning, budgeting, and debt consolidation.

“Working towards your goals from a financial perspective, it can sometimes feel like a full-time job, and for an advisor, that’s exactly what it is. That’s their profession,” Ms. Lucreziano points out. “An advisor can take that big-picture view of your entire financial situation to understand your goals.”

Work with an advisor to prioritize and reach your financial goals

Most Canadians agree they need to make every dollar work as hard as possible in the current economic environment. An advisor can help you do that, Ms. Lucreziano says.

Whether you have long-term or short-term goals, an advisor can help you set out a clear plan to get there by breaking them into smaller, achievable steps, she adds.

Thinking of a career change? An advisor can help you calculate how the change in your income and employment benefits, your pension and retirement contributions will affect your overall financial picture.

Planning to start a family? An advisor can help you understand the temporary impact on income during parental leave and help you with a savings plan to cover that income gap or assess options like a line of credit.

Even if you are not in a position to pursue all of your goals right now, an advisor can help you prioritize your goals and plan for the future, whether buying a new car or home or investing, Ms. Lucreziano says.

“It’s like having a personal trainer for your money. They can help you make your money work harder for you.”

Too often, people seem to feel their financial goals aren’t big enough to need expert help. That’s not the case.

“This is one of the biggest misconceptions because the things that you think are small are actually the foundation of building wealth and financial wellbeing over time,” she says.


Visit the CIBC SMART ADVICE™ hub for financial advice for all life’s moments.


Advertising feature produced by Globe Content Studio with CIBC. The Globe’s editorial department was not involved.

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