In the words of a Bob Dylan wholesome folk song, the times they are a changin’. Changes are always coming. Sure, times can be good but as sure they will also be uncertain at some point in the future. Times are not always winning. You need a strategy on how to shore up your finances in uncertain times. Winging it is not a plan.

A myriad of challenges have been plaguing Canadians’ personal finances, from the high cost of living to the global trade war that has roiled markets and the economy. It likely has some asking how they can better safeguard, or even recession-proof, their finances.

No silver bullet

Experts say while there’s no silver bullet, there are several ways people can better position themselves to weather any economic storms. People aren’t sure what to do with their finances, how to save for themselves, and as we can call it, even recession-proof their finances.

Many households are still feeling the pinch from the high cost of living and some are facing or have faced higher mortgage payments upon renewal. On top of that, on-again-off-again tariffs stemming from U.S. President Donald Trump’s global trade war have caused disruptions in the world economy and taken a toll on consumer sentiment.

Creeping price increases

April inflation data from Statistics Canada showed a sharp slowing in the annual rate to 1.7% from 2.3% in March. However, the underlying details signalled stronger price increases. For example, grocery store inflation outpaced the overall consumer price index for a third month in a row.

Recession-proofing is about preparation. It’s not about timing a market but really structuring your life. The conversation starts with taking the time to see where a person is headed. You can’t control the markets. You can control your spending. It starts honestly with being incredibly, brutally honest with a cash flow review.

Reviewing the basics

We’ve been relaying to clients the need to go back to basics: reviewing their budget and paying down debt. Setting a realistic budget, but without being heavily restrictive on spending, could help boost your savings.

It’s always good to review your debts and identify any opportunities to save on interest. That can be done by transferring balances from high-interest credit cards to lower-rate options, making additional principal payments if you have extra funds, or negotiating better terms with lenders.

Another step toward recession-proofing your finances is building your emergency fund. Aim to save at least three to six months of essential living costs in an accessible account. Putting emergency funds in a separate high-interest savings account to allow easy access if you need it, but also earns some interest.

The bottomline

Those who say we’ll just wing it, in uncertain times, are fooling themselves. We always need a solid backing to deal with changes that come that we can’t forecast or control. As I said, there is no silver bullet. No guarantees.

In creating positive alternatives, we’ll weather difficult times until we are on our feet again. The other key aspect of this is the ability to alleviate stress and worry from our daily lives in the advent of challenging times. Having a positive attitude is key to Keeping Life Current.