March 10, 2025

Surviving the Boom/Bust Cycle in Calgary

Calgary's economy is historically tied to the energy sector, meaning local households face unique volatility. When times are good, spending inflates. When times are bad, the resulting shock can be devastating.

Build a Larger Buffer

While standard advice dictates 3-6 months of expenses, Calgary workers in volatile sectors should aim for 9-12 months of core operating capital. This ironclad buffer prevents forced liquidation of assets during downturns.

Deleverage During Booms

Use overtime pay and bonuses exclusively for debt demolition, not lifestyle inflation. A zero-debt household is practically bulletproof during a recession.