Personal finance in a perma-crisis world: Thoughts on debt, saving, taxes, food and houses

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The world isn’t headed back to the quieter days of 2019 any time soon, and neither are your personal finances. Here are five realities to guide your planning

Since then, we’ve slipped into what feels like a perma-crisis world of pandemic, war in Europe, an overloaded health care system and climate change disruption. The world isn’t headed back to the quieter days of 2019 any time soon, and neither are your personal finances. Here are five realities, both good and bad, to guide your planning.

. Invest equal amounts in GICs maturing in one through five years. Depending on your needs, you can either reinvest money at maturity, or take it in cash.Good debt is borrowing that helps you build wealth – say, a mortgage or an investment loan – while bad debt pays for things that depreciate or have no lasting value. This distinction had its uses when interest rates were low and using debt to acquire a house or investments made clear financial sense.

There’s no one answer to high food costs, only micro-solutions. Grow your own veggies in the summer, download and use apps that connect you with coupons and sales, buy in bulk, pre-plan meals, don’t shop when you’re feeling hungry, pivot to cheaper brands, sizes, tastes and cuts. Every full-price item you buy is a win for inflation.Too many people are chasing too few homes.

 

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