From flight to fight: How to strengthen your financial resilience

Insolvency firm MNP’s latest Consumer Debt Index suggests that Canadians are pessimistic about their finances in 2026, with the large majority—71%—expecting a worsening cost of living crisis. While some are looking for ways to actively reinforce their financial foundation, a worrying number report an increasing reliance on credit to get by, or avoiding the topic altogether.

Financial stress is common. The nation’s Financial Consumer Agency reports that nearly half of Canadians have lost sleep because of it. In addition, it can be detrimental to physical and emotional well-being. 

Luckily, there are simple steps you can take to strengthen your financial position. 

Canadians are concerned

According to the MNP data, the majority of Canadians (59%) expect a worsening of the economy in the coming year. Specific concerns include increasing unemployment (52%), spiking housing (59%) and healthcare (48%) costs, and higher taxes (53%). On a macro level, respondents expressed the belief that 2026 would bring rising poverty and inequality (62%) and a worsening government deficit (66%).

Economic pressure is nothing new for Canadians, but bright spots have been few and far between since the COVID-19 pandemic. In the past six years, households have struggled with inflation, tariffs, and a shrinking job market. By now, it’s understandable if Canadians feel like they’re living in a never-ending financial crisis.

The bad news is that it’s not all in our heads. MNP reports that only 47% of Canadians have an emergency fund to cover six months, and 41% say they’re $200 or less away from financial insolvency on a monthly basis.

Financial fight or flight

Money pressures are common, but how you respond can be the difference between relative peace of mind and paralyzing fear. According to MNP, nearly three in five (59%) are adopting a “fight” mentality and taking proactive steps to protect themselves. Strategies include consolidating debt, adjusting their budgets, and seeking out help from a financial professional. 

However, nearly a third (32%) are avoiding the problem—an anxiety response colloquially known as “flight”. If you avoid thinking about or discussing finances, or if you feel unable to act at all, you might be in a flight response. 

“Sustained financial pressure is prompting both decisive action and withdrawal among Canadians,” says Grant Bazian, president of MNP LTD, adding that financial flexibility—or lack of it—may be the difference between someone who fights or flees. 

Take small steps toward financial flexibility

There’s no quick fix to improving your financial flexibility, and it can be mentally and emotionally fraught to even think about. That said, small steps in the right direction will help you escape the cycle of fear around money. Here are some places to start:

• Budget. If you already have a budget, now is a good time to revisit it. If you don’t have a budget, build one. Once you have accounted for all of your income and expenses, you can find ways to cut or redirect your spending.
• Prioritize emergency savings. Experts suggest having between three and six months worth of savings in the bank to support you in case of job loss or other emergencies. Even a small but regular contribution will add up over time.
• Pay down debt. Debt, especially on a credit card, can destroy your financial health. Regular interest rates can be as high as 25%, and increase what you owe quickly, because of compound interest. You can improve your position by not spending on credit, moving debt to a lower-interest credit card, and considering consolidating your debt.
• Increase your income. Reducing your spending is only half the equation. If you can increase the amount of money you bring in, you’ll have more to work with. Consider a second job or a side gig. Sell off unused or unwanted items and put the proceeds towards your emergency fund or debt. 
• Ask for help. Many people have shame or secrecy around money issues which stops them from getting the assistance they need. There are professionals and resources available to help you reach your financial goals. 

Financial anxiety is widespread in Canada, but ignoring it only deepens the strain. And while broader economic pressures may feel out of reach, personal financial resilience is not. Take deliberate steps today to ease stress, build a more stable foundation, and gain a sense of control over your finances. 

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