A new report by MNP Ltd., based on Ipsos polling, reveals that Canadians are increasingly burdened by financial pressures that force them to cut back on non-essential expenses before receiving their paycheques.

Over 60% of Canadians say at least half their income is already committed to bills, debt, and regular expenses, while 32% report most of their paycheque is spoken for before it arrives.

This phenomenon, termed 'lifestyle shrinkflation,' involves reducing discretionary spending on travel, dining, events, and children’s activities.Grant Bazian, president of MNP Ltd., explains that Canadians are prioritizing necessities over luxuries, with 35% cutting back on personal enrichment and 57% reducing travel.The trend also impacts relationships, as 28% are scaling back on celebrations.Experts suggest alternatives like staycations and reviewing automatic subscriptions to manage costs.While the MNP Consumer Debt Index shows slight improvement in debt levels, concerns remain about the long-term sustainability of these adjustments.