We are almost certainly headed for a recession in Canada due to a number of reasons. The pandemic has resulted in massive supply chain issues, which means it’s not only more expensive to ship products, but it also takes longer due to the lack of supply of parts. The Bank of Canada has increased the benchmark interest rate several times in 2022, which means interest rates have gone up. Soaring food and energy prices have helped bring inflation to a 10-year high. High interest rates and rising prices translates into less consumer spending. On top of that, Canada is experiencing a labour shortage, which has a dampening effect on GDP (Gross Domestic Output). A recession puts everyone on alert and many people put their lives on hold to ride it out. While people will hopefully continue to seek out necessary services such as visiting their doctor, dental clinic, or optometrist, there are four things you may be putting off during a recession…but do you really have to?
Moving to a New Home
You may be contemplating moving to a new home for several reasons. Perhaps your family has expanded or the kids having finally moved out. With Canadian real estate prices at historic highs, you might be concerned that now is not a good time to move. The high real estate prices have permeated not only the buyers and sellers market, but the home rental market as well. The good news is that the high interest rates have already had a dampening effect on real estate. For example, real estate prices have dropped 19% since February 2022 and they are forecast to continue to drop into spring 2023. If you are looking for the most affordable apartments in Toronto, you might want to check out Rentola Toronto, a website that facilitates contact between landlords and tenants.
Many couples had to postpone their weddings during the pandemic since large events were prohibited to prevent the spread of COVID. As a result, 2022 was a busy year for weddings. The price increase in goods and services has made weddings much more expensive and the anticipated continued increase in interest rates will only contribute to this since it makes it more expensive for consumers and businesses to borrow money. That doesn’t mean you can’t tie the knot soon. There are many ways to find efficiencies when you are getting married. The number one way is to reduce the number of wedding guests. Restrict your wedding to close family and friends. This will have a huge impact on your bill since the cost of food and beverages is one of the largest wedding expenses. Another way to reduce the cost of your wedding is to choose a lesser known wedding venue. You may have to go outside the city limits of Toronto to find wedding venues that are more reasonably priced. A third way to reduce your wedding costs is to rent your wedding dress. Wedding dresses are worn for only one day so does it make sense to spend thousands of dollars on a wedding dress? You might be interested in reading, “Things To Consider When Planning a Backyard Wedding“.
Going on Vacation
Since people were restricted from travelling during the pandemic, there is a pent-up demand for travel. During a recession, often the first expenditure many people postpone is a vacation. As mentioned above, rising energy costs and rising interest rates have increased the cost of flights. Hotel room rates have also increased for the same reasons. Fortunately, discount airlines such as Swoop Airlines, Flair Airlines and Lynx Air have entered the space, which means you don’t have to put off your vacation until the recession is over. Choosing to rent a home or apartment while on vacation from sites such as VRBO or AirBnB will also save you money on your trip since these private homes don’t have the overhead costs that hotels do.
Finding a New Job
Many people may be reluctant to switch jobs during a recession. Because the economy is uncertain, it seems like the safer bet to stay in your current job, even if you have outgrown it or it is no longer satisfying. The good news if you are looking for a new job is Ontario is currently experiencing a labour shortage. Therefore, your skills will be in high demand. Businesses are desperately trying to hold on to existing employees. One large national firm has even proposed transitioning employees from a five-day work week to a four-day work week with no reduction in their salary. So don’t let the recession stop you from job searching. You may find your best opportunity yet.
The above items are some of the things you may be putting off during a recession. With some planning and creativity, however, you may not need to postpone these major life events.