I was recently told to check out this blog by Garth Turner who really has his finger on the pulse of the Canadian economy and real estate.  A few other things as well however I try to follow more economy and real estate.  Check out his blog here (http://www.greaterfool.ca)

I was checking out his latest article titled Deflated where he talks mainly about how the economy is shifting from a leveraging world to a deleveraging world.  Honestly this is something that should have happened much earlier in my opinion but people just couldn’t stop spending and still had that instant gratification mentality.  Well that’s about to change I think as people who are wanting to pay back debt are going to have a much harder time in a deflating world.  Check out the blog for more details.

A few key points I wanted to bring out in “What should you do in a deflating world?”:

• Think hard before buying anything. Houses, cars and iPhones will be cheaper in six months. This is not the advice Ottawa or the Bank of Canada want me to give, but there it is.
• Pay down debt. In a deleveraging world it just gets harder to lose.
• Be liquid. Stocks, bonds, funds, cash — liquid. Houses, Porsches, cottages, locked-in GICs, condos — illiquid.
• Deflation plus liquidity equals party. Deflation plus debt equals divorce.

Since November of ‘09 I’ve followed quite a bit of this advice which was given to me by my coach and mentor in life and I have to say it’s paid it’s self over MANY times.  I could not be happier that I’ve sold my condo (which I’ve seen prices have dropped $20K since I sold) and paid down my debts especially in how the market is and how it’s going to continue to get worse.  I highly suggest you look at your financial portfolio and what your debt situation is like and start making smarter decisions.  A lot of you are already in great positions but sometimes we can use a fine tune or tweak.  Just don’t use the financial advisors at Lindsay’s work! LOL