If you’re concerned about finances, you’re not alone. Janet Gray, an advice-only financial expert and money coach, says many people are feeling the pain of rising costs. While it can be difficult to make ends meet, Gray told CTV News Ottawa there are steps people can take to make their financial burdens a little less taxing. What’s hurting the most? Gray says the two main financial concerns she’s hearing about lately are gas and groceries. “Those are the things that we’re seeing the highest increases on,” Gray said. “Because they’re essentials, they’re hurting more. It’s not just the things that we liked or would want to do or like to do.” According to Gray, many people are delaying or avoiding other large expenses due to the cost of the essentials. “I was going to take a trip, but now I’m not. I was going to do this, but now I’m not,” she said. What can you do in the short term? According to Gray, there are two crucial steps people can take right away if they’re feeling the money crunch. Gray says people should first identify their essential expenses and then determine which costs can be cut. “Define what your essentials are. I need these. I have to pay my bills. I have to eat. Those kinds of things,” Gray says. “Know your numbers and know where you are spending.” From there, Gray says you can look for where you might be experiencing “leakage.” “I didn’t realize I was spending that much on takeout. I didn’t realize I was spending that much on streaming subscriptions,” Gray said. “If you know where your money’s going and you have a greater eye on it, that will give it more purpose, then you can make cuts more easily because you’re a little more definite about where that money’s going.” How to approach the holidays on a tight budget? Thanksgiving Day is right around the corner, and the holiday season is fast approaching. To approach the costly time of year without breaking the bank, Gray recommends setting expectations early. “Say to your family, ‘it’s not going to be as big a meal as it normally is. It’s going to be a potluck, or it’s going to be smaller servings for everyone, or something,’” she said. “Plan in advance. Know what you’re going to spend.” As Gray puts it, think of it as “short-term pain for longer-term gain.” “Set the expectations, and then everyone buys in, and there will be less disappointment and more of a feeling of we’re doing this together for the greater good but also because we don’t want to have the bad consequences going forward,” Gray said. Are buy now, pay later services worth it? Buy now, pay later services are on the rise, offering people the option to split purchases into installments. While it can seem convenient to carve up the payment over time, Gray warns that these services make budgeting difficult, and spending can add up quickly. “Sometimes they’re small, inconsequential it seems, amounts, but then they start building on top of each other, and then you get to the point where yikes, it’s all at once too much because you’ve now compounded them all,” Gray said. Gray warns that missed payments can impact your credit score. Users can also be hit with overdraft fees or late fees if they don’t have enough money to make their payments. “I’d be leery about using them,” she said.
