Every day I meet people, existing clients and new clients that will fall into one of the above categories. True savers never think they are savers and always struggle with the question, 'knowing' they should save more, when in fact they are usually doing a great job.
It's the spenders that are more interesting however. And I wonder if Justin Trudeau is a saver or a spender?
With prospects of a $10 billion deficit looming, or more, I think he's a spender.
The problem with spenders, in most cases, is they just spend. They don't think about the options. There is only one option, to spend money to solve problems. The money will come from somewhere, it always does. And eventually someone will pay the price.
This is not a political commentary, just an advisor commenting on what he has seen over the last number of years. I've seen it with clients, I've seen it in companies, I've seen it in non-profits, I've seen it in sports organizations.
When faced with a challenge, spenders 1st answer is to throw more money at it. Increase expenses. Increase fees. Increase budgets. I'm not saying it's always wrong but perhaps a moment of pause and reflection would be best first. Then a look at other options, alternatives. Perhaps just riding it out might be the answer. It may be too late for our federal government, or maybe not, we can only hope! But it may not be too late for you and I.
Just my opinion.