Happy Holidays!
Merry Christmas and Happy Holidays to everyone! Hope you get some time to enjoy life with your friends and family. Christmas is a time to celebrate the birth of Jesus, enjoy your tree and decorations and other annual traditions. Two thousand years ago God sent his son Jesus to be born into our world to bring a path for our fallen world back to a God who loved His creation. The Christmas story brings hope to a world that had lost its way and to people who were oppressed by the world they found themselves in. Today that story is as relevant as ever with all that is going on in our country and world. So, if you haven’t started your personal spiritual journey, I encourage you to kickstart it this holiday season by embracing the nativity story of Jesus and reading the bible.
November and the first part of December have been extremely busy at Drake Financial and in the financial markets. Many of you have invested new funds in our MICs, GICs and DMIs. Many others have completed their annual RRIF withdrawals and discussed their financial goals and revised their plans accordingly. December is a good time to reflect on your financial plan and January is the time to implement it. So feel free to call the office for a phone, zoom or in person appointment at your convenience.
The stock markets have been buoyant despite historical over valuations. Many experts are predicting a stock market correction in 2026. The Bank of Canada is signalling the rate reductions are over while the US Fed is becoming increasingly influenced by the president to continue lowering rates in 2026. Expect more financial turbulence in 2026 while international economic forces collide and economic realities of high debt take over.
For investment recommendations, we continue to like mortgage investment corporation shares due to their diversity in the mortgage market and steady returns that have outpaced the stock markets over the long term. We are also seeing a lot of investors taking our GICs. Ask us about which GIC might be right for you. If you have investment funds sitting right now and don’t want to rush into an investment decision, we offer the best rates on government guaranteed cashable GICs.
Here are some pictures from our Drake Financial festivities:
Christmas Quiz:
Here is the Christmas quiz - Melissa Reedel won this at the Drake Christmas Party. See if you can beat her score of 18
Play Christmas Questions Quiz quiz: study these multiple choice test questions and answers
Financial Literacy:
Here are 10 easy financial resolutions that you can make (and achieve!):
Look at Last Year’s Financial Mistakes and Victories
You can’t plan for the future if you don’t look at your past. Go through your bank and credit card statements and see where you’re currently sitting. What financial mistakes did you make last year? What did you succeed in?
List Your Financial Goals
Once you’ve taken a look at your past financial mistakes and victories, make a list of your financial goals for this New Year. They can be overarching, big goals or smaller, specific goals. Whatever you wish to achieve, jot them down somewhere you can see them every day.
Start a Budget
Now that you know what financial goals you want to achieve this year, create a budget to make them happen. How much money do you bring in each month and how much of that goes to household expenses, childcare, commuting, entertainment, clothes, paying off debt, etc.? Take a good, hard look at your money and then make an action plan to stay ahead of the game.
Change Your Spending Habits
Once you know how much of your money will be going to each category, think about how you spend your money on any given day. Do you buy coffee each morning? Go out for lunch once a week? Pay for services you never use? Assess your spending habits and then commit to changing at least one of these habits to save you money.
Automate Your Online Banking
Technology has given us the power to save money more easily and efficiently. By automating your online banking to withdraw money from your chequing account to go into your savings, TFSA or RRSP accounts, you’ll never have the excuse of forgetting or not planning for it. This is also a great way to start an emergency fund.
Pay Fast, Buy Slow
To make sure you stay on track with your finances, live with this simple rule: pay fast and buy slow. Pay your bills as soon as they come in to avoid late fees and help you understand exactly how much money you have leftover. And adopt a slower spending approach to help minimize impulse purchases and increase rational thinking. This can be done by implementing a “pause” period between when you first consider purchasing something and when you actually purchase it.
Pay Off Your Credit Card Balance in Full
If you can’t pay off your balance in full, at least aim to pay off more than the minimum payment. Ensure you have the money in your bank account before making purchases on your credit card. This will help you break the never-ending cycle of working to pay off your credit card while you add more purchases onto it.
Talk Finances with Others
To make sure you stay on track this year, get the support of your family and friends. Tell them your financial goals and how they can help you achieve them―whether that’s going out for dinner less and adopting a cheaper hang out routine, or simply being a “check-in” person for you to update them on your progress.
Take a Financial Literacy Course
Expanding your financial literacy is one of the best investments you can make for yourself this year. Learning more about money management, debt, credit, budgeting, retirement, etc. will not only help you now but for years to come. A great way to start is by picking up a personal finance book from your local library or educating yourself through our useful financial education classes.
Consolidate Your Debt
If you haven’t already, make an appointment with one of our experienced and compassionate credit counsellors to look at your debt consolidation options. Carrying multiple balances (and all with varying interest rates) can be intimidating and all-consuming. Make it your mission this year to end the constant stress of debt by seeing if you qualify for our Orderly Payment of Debts (OPD) programs.
Happy New Year, everyone! Let’s make the most of these next 12 months and invest in ourselves and our families!!
—
Useful links:
Is the stock market in a bubble ready to pop?
AI Boom Has 4 Bubble Signs and Could Burst in 2026, Economist Says - Business Insider
Canada’s real estate market is at an all time low in sales volumes, while the average price has dropped about 5% this year to date.
CREA | Canadian Housing Market Stats
Canada show a trade surplus for the first time. An encouraging economic metric in our current tariff uncertainty.