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Financial Bootcamp aims to whip your wallet into shape

VANCOUVER (NEWS1130) – Tax time is closing in with less than a month left to sock away your RRSP’s for the 2014 year.

It’s called Financial Bootcamp, a series launched by the Globe and Mail to help people take action with their money.

Columnist Rob Carrick says debt is still the biggest issue for people, as we are being conditioned to buy now.

“I just rode up in an elevator in my office building and there are ads on there. There are ads every time I go on the Internet. You know TV is full of shows about beautiful houses and
how to make your house more beautiful, so we are conditioned to buy and interest rates are low so we are just jumping all over this.”

Carrick explains unpaid debts are declining slightly but savings rates are also low. “Canadians are very law-abiding, rule following people; we don’t want to default on our debts, so the question isn’t how many people are defaulting on their debts, it’s what sacrifices are they making in their household finances to keep paying the debts. That is why our saving rate is low and it’s been declining.”

He adds that Generation Y, those between 18 and 30, are facing unique challenges as unemployment in that age bracket remains a huge issue.

A few tips to get back in the black – pay cash for everything and avoid marketing designed to make you over-spend.