Last week, I came across this Global News article. It’s an interesting – yet scary – read about the ability (or lack thereof) of Canadians to make ends meet. And yet, this is hardly ‘news’. Just google ‘living paycheque to paycheque’ to see just how pervasive the problem is in Canada and the US. Clearly, we North Americans have serious issues managing our finances. But why is that? Those with opinions on the matter generally fall into one of two camps:

Camp 1

It all comes down to needs vs wants. And owning a newer car and a large house, taking annual exotic vacations, having the latest gadgets and smart phones and $100/month cable TV plans, eating out 5 meals a week, etc. are not ‘needs’. Just spend less than you make, whatever that amount is, and you’ll be fine.

Camp 2

It isn’t possible to ‘live within your means’ when wages have been declining for the past few decades, and the cost of living keeps going up. If wages can’t even cover rent or mortgage payments, utilities, groceries, gas, etc., what’s a person to do?!

What do you think??