Revisiting Your Household Budget

Pyle Group

After the last two years, all of us are rejoicing that summer has arrived. With summer comes getting together with our families and friends in the great outdoors that we are so blessed to have in this region. An early morning round of golf as the dew slowly evaporates, quiet paddling on a crystal-clear lake and sitting around the campfire listening to evening sounds of nature – these activities will likely be even more popular this season, given the sharp rise in gasoline prices. 

The significantly higher rate of inflation over the last several months will put a dent in household budgets, coming on the heels of higher interest rates and stock market volatility. Higher cost for inputs will also put pressure on margins of resort owners, leading to higher prices for end users. The storm that ravaged this area in May also serves as a reminder of just how vulnerable we are to the whims of nature and our dependency on electricity. 

It is especially important today to take stock of our finances and revisit the household budget. Does the higher outlay for things like food and energy mean that we need to trim back in other areas? What about travel, both within this beautiful province and beyond? Some of you may also be experiencing a different work situation and some may have brought forward retirement plans in the wake of the pandemic. 

Rather than trying to guess what kind of summer lifestyle you will have, the best practice is to revisit your financial plan and update it with all of the most recent information. Mind you, inflation is unlikely to remain as high as it has been recently, and a more positive market environment should return. Still, updating your planned spending numbers and seeing how your household budget is being impacted will allow you to make informed decisions this summer. The most important thing to remember is that time with family and friends is priceless.

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Andrew Pyle is an Investment Advisor with CIBC Wood Gundy in Peterborough. The views of Andrew Pyle do not necessarily reflect those of CIBC World Markets Inc.