Nearly half of Canadians, which is a stunning amount, live paycheck to paycheck, and the Russian invasion in Ukraine and the Coronavirus/COVID-19 epidemic have only served to worsen this issue. 

It might seem like you’re in a trap and have no way out if you’re barely scraping by. 

While breaking the pattern of living paycheck to paycheck might be difficult, there are practical actions you can do to begin adjusting to inflation.

Set Up a Budget

The secret to financial stability is a budget. Knowing how much money you have coming in and going out might help you deal with a lot of stress and save you from guaranteed payday loans Canada, which are only needed in emergencies.

The simplest method to accomplish this is to examine all of your outgoing costs. Remember to pay your phone, electricity, and entertainment expenses as well. After that, contrast those costs with your income. You’ll need to look closely at where you can make cuts if your spending exceeds your income.

Utilize Deliberate Spending

Spend your money mostly on items that provide worth to your life. 

The significance of being deliberate with our purchases and comparing things or concentrating on relative pricing to remain within your budget becomes even more crucial in a time when prices are rising, and budgets are tight. 

Consider your options before making a buy, and avoid impulsive orders. 

Many individuals who have used waiting periods have come to the conclusion that they didn’t need the thing they were tempted to acquire or discovered a good substitute.

Limit Spending

The difficult aspect is this. You may begin caulking the holes now that you know where the money is seeping.

It could be necessary to make some lifestyle adjustments, such as giving up cable TV or gym memberships or reducing the number of coffee trips and restaurant meals. 

You may be amazed by how much of a difference these little adjustments can make in resolving your financial issues.

Save Money on Food

Start by attempting to buy food in bulk whenever you can. Since many fresh products don’t have a long shelf life, this can’t always be done universally, but mainstays like grains and dry foods may be utilized in a variety of cuisines and can happily live in your pantry for a long time. 

Having said that, you can swiftly employ bulk goods if you have a batch cooking plan in mind, which can help you get a little more bang for your buck. 

While the cost of numerous food products has increased over the last year, beef has witnessed an exceptionally steep increase of about 10%. 

To avoid spending money on steaks or pork chops, think about consuming more vegetarian meals. When combined with legumes high in protein, such as lentils or beans, you may save costs without sacrificing nutrition.

Refinance Your Debt

As we can see in the picture, inflation in Canada in 2022 reached a record high of 5.64%, which is why prices for familiar goods and loan interest are rising. Despite the positive forecasts for the coming years, you need to seriously think about saving money and repaying loans. 

Saving money may be quite challenging when you have debt, no matter how little or big it is. 

Fortunately, there are strategies to keep debt from preventing you from saving. Prior to starting to accumulate your savings during a period of high inflation, try to pay off as much of your debt as you can. 

If you’re having trouble paying off your student loans, check into debt aid and forgiveness programs, as well as forbearance and deferral options.

If none of these work for you or your debt, you may want to think about refinancing it with a reduced interest rate. You may pay off your debt more quickly and begin saving if you lower your interest rate, even by a tiny amount. 

Refinancing your mortgage is something else you may consider. While a refinance might be advantageous if you can drastically decrease your interest rate, it’s crucial to remember that there are a number of costs involved that may be too expensive. 

To find out whether you are eligible for refinancing, speak with a lender first. This will rely on a number of variables, such as your credit ratings and debt-to-income ratio. Calculate the savings to make sure they exceed the expenditures if you are able to acquire a cheaper rate.


Better Pay Off Your Debt

Interest rates are often raised to regulate the economy when inflation is strong. 

If you have any debt with a floating or variable rate, you need to be mindful of the possible effects of an environment with rising interest rates on your spending plan and concentrate on paying off debt before it becomes a problem. 

Decide how much you are willing to spend using your credit cards. This prevents you from overspending, motivates you to review your daily expenses ahead of time, and lowers the interest you pay on your loans.

Smart Investment

While an inflationary time might be unsettling for investors, it can also provide opportunities for those who know where to store their money. 

Experts advise investing in commodities such as oil, steel, and cereals since their prices naturally increase during inflationary periods, providing them significant pricing power. 

In addition, owing to their scale and pricing control, safe choices like Canadian bank stocks seldom disappoint. 

However, experts agree that the key to ensuring that your money will increase faster than the rate of inflation and enable you to accumulate wealth is owning a varied portfolio of stocks. Just make sure you’re at ease with the amount you’ve spent and the degree of risk involved.

Set Objectives

The easiest strategy to achieve your objectives and save more money is to divide them into quarterly and annual amounts that are realistic for your particular circumstance. 

However, experts advise maintaining discipline if you truly want to see changes.


Even while times of high inflation might be difficult for the ordinary Canadian, these times don’t continue forever and typically level out after approximately two years. 

There are several strategies to protect your cash in the interim amid uncertain economic times. Utilize the advice we’ve provided above and add any more in the comments section.