IBUSINESS

AVOID THE HOLIDAY HANGOVER

WOULD YOU pass my Scrooge hat please? For if this is
September, then it must be time for the annual rehearsal! of
Mike Grenby’s Christmas Pennypinch — that beloved tale

of Merry Miserliness.

But cringe noi. Longtime
readers of this column will recall
that our profitable parable has a
delightful ending: a holiday
without the traditional financial
hangover.

1 encourage vou to attend the
full dress rehearsal this year in
particular —- because if you are
like the average Canadian, you are
saving far less of your disere-
tionary income than you have since
the early ’80s.

That might be good for the
economy as a whole. But it could
turn your holiday spending into a
splurge you can’t afford.

Ottawa reported recently that
our personal savings rate dropped
to a 15-year low of 9.6 per cent in
1987. That’s down from 17.8 per
cent in 1982.

Even m-.e¢ dramatic, the discre-
tionary portion of the savings rate
plummeted to one per cent last
year from 10.4 per cent in 1982.
(The contractual savings rate, on

’ the other hand, rose to 8.6 per cent
last year. This refiects in part in-
creased savings toward retirement
by the aging population.)

In other words, while many of
us are saving more through pen-
sion plans and RRSPs, most of us
are happily spending almast all of
what is left.

It’s been such fun I (almest)
hate to remind you that the
rehearsal of Merry Miserliness is
about to begin.

(The curtain rises revealing
Scrooge Grenby at his desk, peer-
ing at Consumer Cratchit who is
hard at work poring over the
department store and other sale
flyers.)

SCROOGE: “‘Cratchit! Have
you come up with your Christmas

Air Canada
bounces hack

AIR CANADA bounced back with
a $37.1 million net income in the
second quarter ended June 30,
1988, after a $29.1 million first
quarter loss mostly attributabiec to
efforts to maintain marketshare
following a labor disruption and
intensely coinpetitive industry pric-
ing. The $37.1 million was
marginally better than the record
$37 million net income for the
same period in 1987.

Operating revenues for the
period were $883.1 million, an in-
crease of $60.1 million over 1987,
while operating expenses were
$851.6 million, an increase of
$86.5 million reflecting changes in
the time period of subsidiaries
consolidation and an increase in
capacity and inflation.

Net income for the first six
months of 1988 was $8 million.
Although $45 million less than for
tne same period last year, the six
month earnings shew the strength
of the airline’s recovery in the se-
cond quarter, with stronger
average yields, especially in
Canada, and a moderated increase
in cost.

System passenger load factors
increased from 70.5 in the first
half of 1987 to 71.8 per cent in the
same period in 1988, reflecti::g an
increase of 6.6 per cent in Cana-
dian traffic, measured in revenue
passenger miles.

holiday budget vet?"

CRATCHIT: ‘‘With that
generous raise you've promised —
and with these newfangled credit
cards — we'll be able to spend
more than ever before."’

SCROOGE: ‘‘Heed my words,
Cratchit. Estimate how much you
plan — or better still, can afford
— to spend on holidays, gifts,
food, drink and general abandon-
ment.

“Do you already have that
money saved? (On what I pay you,
of course not.) If you don’t, divide
that total by the number of pay-
days between now and_ holiday
spending time.

“Then have your friendly finan-
cial institution automatically
transfer that amount into your
special Christmastime account
every time your paycheque is de-
posited.”’

CRATCHIT: ‘What a splendid
idea! I can see now how you

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around the world.
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achieved your fame and miserliness
— I mean, fame and fortune.’”’
SCROOGE: (To himself: ‘In
my newfound spirit of charity —
after all, even under tax reform it’s
still deductible — VU ignore that
slip of the tongue.”’ To Cratchit:)
“My good man, number your
spending items in order of priority
to keep everything in perspective.
And this whole Christmas spen-
ding program itself must take its
place among all your other
priorities: regular spending, debt
reduction, saving aad investmunt.
“When December arrives, do all
your spending from this account

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Lit PRIORITY MEBRACETUES

LJ

Priority Post/EMS Courier Convenien

+23 es,
2884:

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49 - Wednesday, September 14, 1988 - North Shore News

dollars

and sense
Mike Grenby

— with its own cheques or perhaps
with travellers cheques kept in a
separate purse or wallet. And when
the money is gone, your spending
is done.”

CRATCHIT: (To himself: ‘‘You
have to admit it does make sense.
Our ‘spend and I!et the bills fall
where they may’ approach was
easier but we sure hated to be
under those falling bills in January
and February and usually March,
too.’’ To Scrooge:)

“Indeed, what a splendid idea! 1
must rush right home to tell the
family.”

SCROOGE: ‘‘Hold off on that

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CGURIER - MESSAY

rushing until 8 p.m. quitting tine.
After all, I'd hate to throw on.
your calculations by docking you
two minutes’ pay for leaving work
early.’”

And so, as the curtain falls,
Scrooge Grenby allows himself the
luxury of a brief smile. ‘‘Once
again,”’ he says to himself, ‘‘f have
dispensed my words of wisdom
and helped all my good friends
ward off the Spirits of Overspen-
ding Past, Present and Future.

“Merry Miserliness to all, and to
all a good night. (If that infringes
on any copyright, just send me a
bill. Rest assured "ll pay it
promptly the day before interest
charges start to accrue.)”’

Do you have a financial or con-
sumer question for Mike? Or a
story you think should be in his
column? Please write to Mike
Grenby, North Shore News, 1139
Lonsdale, North Vancouver V7M
2H4, Mike cannot reply in-
dividually but will answer as many
of your letters as possible through
The North Shore News.

Remember to include your
phone number in case Mike needs
to contact you.

to go —

ZB. Eee) Ey EGURIER MESSAGERIES

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