Nation’s financial woes should encourage frugality

By Jeff Korenko
News Publisher

Without sounding overly melodramatic, we may very well be on the precipice of some scary financial times – especially in Ontario. Firstly, it would appear that Canada isn’t exactly out of the woods where the country’s financial climate is concerned, as the Bank of Canada maintained in a report late last week that the economy is experiencing a significant slowdown after its recovery from the year-plus recession.
Our nation’s central financial institution reports that this year’s second-quarter increase will be less than 50 per cent than what it was in the first quarter. Furthermore, the decline is expected to continue into the third quarter to  2.8 per cent. While the overall picture being painted for this year is a 3.5 per cent bump in Gross Domestic Product growth, the trend will be the continuance of a downward spiral to 2.9 in 2011 and 2.2 in 2012.
Not exactly the numbers Conservative finance minister Jim Flaherty predicted when he released a multi-billion-dollar stimulus package-laden budget in 2009 and noted it would take about five years to recover from the debt incurred.
So much for wishful thinking.
The stimulus money has pretty much run its course. All the funds given for infrastructure projects came with a best-before date, now illustrating that artificial crutches can very easily fail (read the much-ballyhooed, but inconsequential Home Renovation Tax Credit).
Have the Conservatives put us into such deep debt that the worst may be yet to come? It would appear the short-term use of our tax dollars in the form of the Government Action Plan served only to create a dearth of low-paying jobs that will only come to an end.
This may only lend itself to the vicious cycle of fewer jobs and less income, meaning fewer goods and services being purchased and, not surprisingly, a substantial drop in taxes being collected.
Closer to our own wallets, the maligned HST has been in effect in our province for precisely 28 days and already there are significant signs that residents of Glengarry are leery of the anticipated escalation of the cost of living.
Almost at the stroke of midnight on July 1 – Happy Canada Day, everyone! – the price of a litre of gas jumped roughly eight cents as expected and this had or will have nothing to do with the fluctuations in the price of a barrel of oil on the world market.
It would seem we are now entering an era where the need to become more efficient in how we get around is taking on added importance.
It’s no surprise then, there have been plenty of stories readily available of late pinpointing the ways we can save money on fuel for our vehicles.
Now more than ever you should (in no certain order):
- drive more defensively or cautiously, as being overly assertive behind the wheel wastes gas and puts other drivers and yourself in needless danger;.
- maintain your vehicle, as a car in tip-top running order burns less fuel. Check and change, when necessary, oil and air filters and keep your tires inflated at the proper pressure level;
- see if you can shorten the time you spend behind the wheel – if you have a longish commute, say to Ottawa or Montreal – by changing your route, or the hour that you work to avoid rush hour type-traffic. Perhaps your employer will even let you do some work from home at certain times during the week;
- avoid idling your car for more than 30 seconds at a time. Evidence shows letting your car run at a standstill for two minutes uses as much gas as it takes to drive 1.6 kilometres (one mile). In the same vein, multi-tasking while you are out and combining errands during one trip can save as much as 50 per cent of your fuel usage than driving the same distance over a multiple number of trips.
- try walking or riding a bike, instead of jumping in your vehicle all the time, especially for short trips or small errands. It will save you money and the extra exercise will be beneficial to your health;
- carpool. This has long been an effective way of cutting back on commute costs. If you do have to travel to a major centre for work purposes, this can also shorten your travel time, as carpool lanes always tend to be devoid of heavy traffic.
- consider purchasing a hybrid vehicle. Worried about the higher price tag of a hybrid, so far? One of the Big Three automakers in North America recently announced it will sell its hybrids at the same price level of its gas-powered models, as early next year. You can expect the competitors to quickly follow suit.
It may not seem like much, but it is a start toward helping ourselves.
Have a great week.