The Direction of the Drift

Do you find that the wind tends to blow you in the direction of the wind and that the current tends to carry you down stream?

Part of the art of sailing is the ability to sail into the wind and without the wind it is difficult to sail at all.

With falling interest rates, it was like the wind and the current were carrying us in the direction we wanted to go. We were comfortable going in the direction of the drift.

With the real possibility that a financial storm is coming, with interest rates now blowing in a direction different than where we want to go, we get to re acquaint ourselves with the joy, the art and the beauty of sailing.

So while the thought of a financial storm coming can be a little scary, it can also be the cause of excitement and exhilaration.

After having drifted in the direction of the wind and current for a while (30 years), now is a great time to be touching base with the basic skills of financial sailing.

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Heard over the morning radio:

“Canadians' debt-to-income ratio now ranks first among the 20 advanced countries”

“Household debt has surged three times faster than income in recent years.”

“Even more remarkably, they took on more debt during the slump – a first for a recession – because borrowing was so cheap.”

“With debt levels this high, even a small hike in interest rates will be ugly for those whose incomes aren't rising fast enough to meet their day-to-day expenses.” “
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Canadian’s personal debt levels are at record highs.

One of the basic skills of financial saling is debt management. It is time to take a look at the debt levels each of us is carrying and to look seriously at reducing these levels.

“The Canadian personal financial ship has never ridden so low in the water.”

The Coast Guard has made a ruling, Canadian's personal financial ship is over her maximum sailing weight and is a danger to herself and others. She will not be allowed to be placed in the water.