The markets are in turmoil, debt levels are rising, now the economy is slowing. With less income how do you pay off your credit cards, go on a vacation or retire when you planned? 
It was a stroke of genius. Giving a tax credit for home owners to spend money on a new hot tub, bigger kitchen, or renovate the family room. Improve the quality of your living experience and save some taxes along the way!
Over the last few months quite a number of families in Kelowna are cutting spending, trimming costs on everyday expenses and eliminating some things all together. 
What did you do for your mother last weekend? My daughters and I took their mother to Vancouver and we did our best to stimulate the economy. We ate too much, shopped too much and walked too much. Amazing all the best stores and restaurants are just minutes from Skytrain!
Much has been said about a coming "Global Recession" and our job as consumers is to spend to save our economy. I had great discussion today with someone if this "recession" is real or just a headline for newspapers, TV news and Internet sites. Here is my take ...
Everything in the last 4 - 5 years has gotten out of hand. One of The best example of this is real estate. We all watched housing prices going up well beyond reasonable growth rates. Another good example is the car business.The real problem is the industry is producing 30 - 40% more cars than it can sell.
As the economy shrinks, wages come down , workers will be laid off and companies will have to find new ways to attract consumers. In the short term this will be difficult as many are worried about potential job losses.This process will be more painful for most of us than the recession in the 80's. Why? In the 80's few of us had a sizable amount money invested, owned homes or had large amounts of debt. A 20% loss on 100,000 is much more worry some than on 10,000.
Trimming costs is good news for investors. Smaller liabilities and stronger balance sheets make companies more attractive. Who is going to invest in a company that has too many workers, too much debt and too little customers? It is in time likes these that money is made.
As the recession makes its way to the Okanagan ... what can you do about it? Check out the article "4 Tips for Weathering the Kelowna Recession".
Review your cash flow, eliminate your debt and find ways to simplify your financial life!
If you are like most Okanagan Families the coming sunshine this weekend meant only one thing ... cleaning the back yard, raking the yellow grass and digging out all the gardening implements from the storage shed. In sunshine we made our plans for this years harvest of tomatoes, lettuce, beans and green peppers.Review your needsCleaning up your financial life at least once a year is like cleaning out your storage shed. Once it is done you feel good you did it. Best of all when you need to find some thing at least you know you have it and where it is.
- Do you have enough or too much life insurance?
- Have you incurred more debt this year and how will it effect your projected debt freedom date?
- How has the value of your portfolio changed your FIN number and your retirement date?
Revisit your written plan
- Are your goals still relevant in this current environment?
- How are your spending habits?
- Are you going to able to manage if you get laid off and have to wait 6 to weeks for benefits?
Simplify
- Consider using one tern insurance policy instead of multiple policies.
- Consolidate or optimize debt for better cash flow and quicker debt reduction.
- Put all your RSP assets properly diversified with one company. Easier to manage risk and easier to understand how your money is managed.
According to the February 1,2008 issue of Newsweek, the average household "owes 20 percent more than it makes each year." With the current financial crisis, that percentage may even increase as families go deeper into debt just to maintain their lifestyles.
Avoid the revolving consumer debt trap.
Most credit card debt is revolving debt. Because of the way interest is calculated on revolving debt, it’s hard for clients to know exactly how long it will take to pay off their balance. All that interest can add up to big bucks along the way.
With fixed debt, clients make payments over a set span of time. It’s easy to tell when the principal will be paid off and – even with the same interest rate and monthly payments – the pay off date is usually much sooner than with revolving debt. Consolidating revolving debt into one fixed rate loan can potentially eliminate those debts sooner and reduce a client’s monthly payment.
Understand compound interest.
With a revolving debt account, compound interest can eat away at a client’s financial health. But when a client uses compound interest in their favor, it can really help savings grow. The more a client saves, the more interest they can potentially earn on that money.
Make a lifestyle change.
When it comes to reducing debt, little changes can make a big difference. By separating “wants” from “needs,” and making the “needs” the priority in spending, clients can begin saving toward their future.
Economic woes and an increase in consumer prices have made sticking to a budget even more difficult for families across North America. People who were already struggling financially under the burden of debt and poor savings, may be feeling the pressure even more intensely now.Here are six tips to help you have more and spend less.
1.Cut energy use
Simply sealing a home properly can help a homeowner eliminate 25% of their heating and cooling costs. Many utility service providers provide free or discounted energy audits. If this option isn’t available, clients can go the professional route, or do a self check using the steps found at energystat.gov.
Another way to prevent leaks is to add insulation, use caulk, spray foam and weather stripping to seal leaks around windows and doors, and in attics and basements. Plug devices with standby power, like TVs and stereos, into a power strip so they can be turned off all at once.
2.Spend less on groceries
With the cost of virtually everything at the grocery store going up, this is one area budget area clients can’t afford to ignore. Some have turned to coupon clipping (a household of four that uses them strategically can save 25% a year), but this is only effective if shoppers use them for items they already use or need.
Warehouse clubs can be a good source of cost effective purchases, but shoppers should weigh the benefits against potential negatives: the tendency to eat more because the food is going bad, and the potential for impulse shopping (many stores put electronics and other goodies out front).
Grocery shoppers can save up to $1,200 annually from cutting just half of their unplanned purchases.
3.Trim entertainment costs
When eating out, skip the drinks, and instead of ordering two entrees, order one appetizer and split a meal. Or dine out during breakfast or lunch, when the entrees are typically cheaper.
Movie tickets now top $10, so hit the matinees instead for discounted admission. Join the local theater’s loyalty club for freebies, get discount tickets in the local Entertainment Book, or head to the drive in, where tickets are usually cheaper.
4. Improve gas mileage
The easiest way to spend less on gas is to simply use less of it. Consolidate errands into one trip, or walk to the grocery store instead of driving. Speeding or braking sharply and frequent lane changes cuts fuel economy by 35%.4
5. Shave car insurance
Most insurers will shave prices for anti lock brakes, having an accident free record, taking a defensive driving course, or using the same insurer for both auto and home coverage – adding up to as much as 25% off a client’s premium. Shopping around for competitive quotes is a great way to potentially save.
6. Boost your income
Costs are rising across the board and a few extra dollars each month can go a long way to relieving the financial pressure of a weak economy and higher expenses. Business opportunities are great ways to do something enjoyable while padding the bank account.
While we can’t control rising costs, changing a few habits can help you hold onto more of your cash!
1Money, July 2008
2Kiplinger’s, August 2008
3Money, July 2008
4Kiplinger’s, August 2008
5Money, July 2008
6Money, July 2007elown
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Plan for Financial SUCCESS !