Trumps "tariff effect"

Everyone has an opinion on one of the most polarizing people in the world, Donald Trump. Like him or hate him, his biggest promise to the American people is imposing tariffs on their trading partners, to bring in more for the U.S. economy. With Canada being one of their largest trading partners, what does this mean for us? Some of us are not checked in or do not care about politics, and that is okay. But when it is about to take a huge hit on your financial leverage, it is time to check in. Today we are going to discuss the implications of these tariffs on Canada, and some strategies to work around it so life will not be (as) expensive.

                Here in Canada with already astronomically high living costs and no sign of it slowing down, the U.S. and Trump are hitting us with tariffs. Well, what can we do as Canadian citizens who may already be struggling. Well, hitting it home as always, BUDGET. With the cost of various things rising from automobiles to food imports and materials like wood or oil, we need to start living more within our means of our budget. This means not going out and buying a brand-new car if your clunker dies out. This means hitting up marketplace and finding a great deal or even buying a USED car off the lot. Even now, buying a brand-new vehicle loses 15-20% of its value when you drive it off the lot, now imagine that when your paying upwards of a 30% tariff increase on your MSRP of the vehicle, a $30,000.00 vehicle can easily turn into a 40K+ out the door price!

                Another way to manage your budget more efficiently is buying groceries strategically. While personally I advocate eating whole foods, the cost of doing so just keeps raising more and more and out of reach for many. What we can be doing to combat this, is buying foods IN SEASON. Do not buy mangos in the middle of winter, you typically pay anywhere between an extra 20-40% because of the extra shipping costs due to the season. In the winter stick to apples, bananas and oranges and when summer comes, then we can look at watermelon, mangos and more exotic whole foods.

                Leading with the “strategic shopping” idea, MEAL PLAN. Yes, it is a little extra work, but it limits waste of food and allows you to be buying only what you need. In my household we try to meal plan and when we do, I also will try to make a little extra so I can also eat it for lunch the next day, and it eliminates the need of buying lunch food, or eating out which should already be a no-no. Pack your lunch the night before work so your not in a rush in the morning, and you aren’t walking/driving to timmies on your break, trust me it also saves you a TON of money! Totally off topic but typically this type of financial health, also brings around physical health gains, bonus!

                North America is in shambles, and we are all worried about rising prices, it is no secret. Heck, even us here at CCDR are also worried. However, how we handle these challenges is what matters. Using even just one of these tips we looked over today, will help you counteract these incoming cost of living increases. Whether it is buying a vehicle smart or strategic shopping, I hope you can take an idea from here and apply it. If you are struggling with debt in any way, do not hesitate to reach out to a CCDR agent to discuss your options.