In the past year, Canadians’ household debt rose to record highs compared to our disposable income. By the third quarter of the year, our debt to disposable income had climbed to almost 153%. And in its most recent review, the Bank of Canada says that it expects further increases in the aggregate household debt-to-income ratio.

While real estate values continued to bolster the net worth of individual Canadians, it was offset by a decline in the value of equities and pension assets as the markets floundered.

Indeed the financial news is grim, but what’s happening around us just may just be the wake-up call we all need to take stock and to make good, conscious choices that can help us be better-positioned for the future.

We can set an example in our families and communities that we are ready to take more control over our money and our life, that in spite of the global challenges and debt levels, we can rise above these problems and, one step at a time, one person at a time, we can make a difference by getting more informed and being responsible with our money.

Five ways you can make that happen in 2012:

1. Create a financial plan based on your goals and your values

2. Get more involved with your investments – don’t invest in anything you don’t understand

3. Live within your means

4. Make a plan to start reducing your personal debt and stick to it

5. Make more responsible choices about how you spend your money

While you may not be able to control what’s happening around you, you can take charge of your own life and your finances and make informed and practical decisions that help you move forward towards your goals.

We are here to help in any way we can. Contact us anytime for a complimentary consultation with one of our money coaches.