The popular spending trend this year will be to say no much more than we have in recent times.
Phew, right? If your friends and family are cooling your spending, you’ll have less pressure to try to keep up.
I’ve read tons of economic outlooks for 2023 and one of the common themes was that consumer spending isn’t expected to grow much. For months, financial headlines have documented growing household financial stress. But for much of 2022, overall consumer spending levels reflected the exuberance felt as pandemic lockdowns eased.
A drop in spending is not good news for the economy. Alright – let businesses take the lead on spending to support growth. With interest rates expected to remain at high levels in 2023 and inflation still an issue, a year of mindful spending would suit many households just fine.
By this point, you’ve probably already made a lot of spending cuts and compromises. A thought for 2023: Make a list of all your household’s most important discretionary expenses and see if there’s a way to hold the line or cut costs. Consider everything from your weekly restaurant spending to your big annual vacation. As you review each expense, keep in mind that households like yours across the country are feeling burnt out and ready to say no much more.
I look at some positive personal finance and investing trends in my first column of 2023. Below you’ll find a bunch of links to content that can help you prepare for what I think will be another dramatic year in the financial world.
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Rob’s Personal Finance Reading List
Q: Are you selling losing stocks or winning stocks when you make a withdrawal in 2023 from a Registered Retirement Income Fund?
A: Sell losers if you have little or no confidence in a short to medium term rebound. Think of the RRIF withdrawal as an excuse to do the deed. Otherwise, taking profits on winning stocks makes sense. This is a good place to reiterate some basic RRIF management tips: keep enough money to fund two or three years of RRIF withdrawals in a safe parking space like a guaranteed investment certificate or traded fund on the stock market equivalent in cash. You can tap into this money if you don’t want to sell hard hit stocks or bonds.
Do you have a question for me? Send me. Sorry I can’t answer each one personally. Questions and answers are edited for length and clarity.
Today’s financial tool
A handy list of tax numbers for 2023. Something here for retirement savers, homebuying parents and more.
The cashless zone
Merry Clayton is isolated backup voice to give me shelter by the Rolling Stones, which are epic. Here is the full version of the song.
look at this
This TikTok video offers a simple and straightforward message about investing.
Calling all retirees
Are you a retiree interested in discussing what life is like now that you’ve stopped working? Globe Investor is looking for Canadians to participate in its Golden Age Tales feature, which explores the realities of life in retirement. If you would like to be interviewed for this feature and agree to use your full name and have your photo taken, please email us some details about your retirement life so far at: email@example.com
In case you missed these Globe and Mail articles on personal finance
- Six tips to cut your expenses, reduce your debt and increase your money in 2023
- Homeownership tax shelter is unfair to the Prairies, Quebec and Atlantic Canada
- Advice for young Canadians who find themselves in debt for the first time
More Rob Carrick and Financial Hedging
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