Long-term Thinking PT 2: Families are in the danger zone

[“In many, many ways - financially (e.g., so many Canadian families are deep in debt), economically, socially, environmentally - we need to develop our long-term thinking ability.” G. Harrison, Sept. 24]

Most Canadians aren’t long-term thinkers. They live for the moment, not thinking of thirty to forty years down the road.

As a result, many families will face grave difficulties in the future regarding their retirement, pensions, personal finances, the length of their grocery list.

I shared the world’s best example (that I know of so far) of long-term thinking in an earlier post that touched on the usefulness of an ancient oak grove.

Yes, most Canadian families who appreciate the value of trees are miles off the mark set by one wee architect who made excellent use of a bagful of acorns over 350 years ago, and they’re way off the mark set by their parents and many other people who once owned a piggy bank and deposited weekly stipends like clock work.


Recently I read the following:

Canadian household debt continues to rise

the ratio of household debt to disposable income stands at 149 to 100

the number of Canadians vulnerable to an economic shock has risen to its highest level in nine years (Sept. 14, London Free Press)

And there’s more.

[Please click here for more details in an earlier post.]

Many households face a downtown in lifestyle during the current recession and in the future. Not only is the cost of extra-curricular activities and back-to-school expenses stressing out many families, but after-the-bell sports for youngsters (e.g., hockey, with costs averaging over $1,000 per season) push many over the top. (Sept. 21, London Free Press)

What to do?

Look at your biggest expenses, i.e., housing, transportation, food, clothes, communication (e.g., cell phones), entertainment (movies, cable TV), etc.

Ask yourself hard questions about each.

“Can we live without cable? Can we survive with a smaller car? Can we move to a smaller home to save on mortgage and heating bills?”


["What's the recipe for a healthy home?": photo GH]

“Can our Levis last for another season? Should I do what Harrison does and buy used jeans that are actually better looking on him than I imagined?”

There’s no doubt in my mind that many Canadians - with some effort - can make improvements to their current financial situation and I’m certain that 100% of Canadians would do great good to their future financial picture, as well as the environment, if they reduced spending now, paid down debt and saved money for the tough times ahead.

Let’s get out of the danger zone, financially and environmentally.

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Please click here to read Long-term Thinking PT 1: The world's best example

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