Economy is Moving, easy steps to take to reduces stress

The Bank of Canada has warned that a prolonged trade conflict could push Canada into a recession. In its more severe scenario, GDP could fall by around 5%, unemployment could rise, and inflation could climb back above 3% as import costs increase.

For Canadians, that means a potential squeeze on both income and expenses at the same time.

There are a few ways you can prepare your finances:

Build a cash buffer
Aim for three to six months of essential expenses in a high-interest savings account so your money stays accessible and continues to earn.

Lock in guaranteed returns
If you have savings you won’t need right away, investing in a GIC can provide a fixed return, regardless of how markets or rates change.

Reduce high-interest debt
If you’re carrying balances, consolidating your debt into a lower-rate loan can reduce interest costs and make payments more manageable.

You don’t need to make big changes overnight. But putting a few of these pieces in place can help you stay flexible if conditions shift.