Consumption is traditionally viewed as the inverse of investment; spending today allows for less money to spend tomorrow, and getting into a spiral of spending rather than investing can be a very dangerous trend for many Canadians.
After all, the average Canadian now holds a record amount of debt (approximately $1.68 in household debt for every $1 of disposable income), making the prospect of piling on more debt one which can be very dangerous for those without the ability to see significant income increases in the years to come.
This holiday season, shifting the focus away from the flurry of deals available at one’s fingertips and toward investment in long-term income-producing assets is one way investors everywhere can mitigate the long-term impacts short-term debt (and associated interest payments) can have on long-term cash flows.