They’ll come to your emotional rescue

Recession Busting 2023

BY PIETA WOOLLEY

First Credit Union’s Wealth Management department has literally just ordered more Kleenex.

It’s not because clients’ circumstances are so awful, but because talking about money can get emotional. Especially now.

No matter what their clients say or how many tears flow, just the act of talking about money is good. So says Randall Smisko, a life insurance agent, and Katryna Lawry, a wealth management specialist, who have been with FCU for 15 and 19 years, respectively.

“What’s different now is that people are carrying larger debt loads for longer,” says Randall. “People in the middle-income range are having a harder time. They’re carrying larger mortgages, companies are often not offering pensions, and they’re not saving for retirement. So people may have to work a lot longer than their parents did.”

THEY'VE SEEN IT ALL BEFORE: At First Credit Union, Randall Smisko, a life insurance agent, and Katryna Lawry, a wealth management specialist, have helped hundreds of locals through tough financial times.

Katryna added, “Life is getting more expensive. Housing, kids’ sports, groceries, fuel. Higher interest rates are a new pain some people are going to feel. The question is how to fit everything in.”

Thus, the Kleenex. Money is where people’s values meet their reality, and there is real stigma in how much you earn and owe. When debt gets overwhelming, as it has for many, many Canadians this year, people might feel shame, or a sense of doom – even though these are society-wide challenges, rather than isolated problems. Both Randall and Katryna report that their job is counselling, as much as financial advice.

But there is real advice to be had, even (or especially) for those who feel like they’re drowning right now.

First, don’t hide from your finances. Know what you owe, who you owe it to, what the interest rates are, and whether you have the best products for managing it, they advise. Talking to a financial advisor can really, really help with this, they say. “It sounds painful, but if you know what it is, you can tackle it,” says Katryna.

Second, re-learn the lost art of budgeting, and be in it for the long game. That’s the dull but effective way to build wealth and overcome debt.

Third, understand that everyone is on your team. No creditor wants to take away your car or home. They want to make it work for you. But again, the key is talking it out with your lenders, rather than hiding from it.

Ultimately, both Randall and Katryna say that whether or not a recession comes in 2023, it’s important to remember that people always make it through.