The personal finance message of last week’s federal budget is that building a better economy will be a slog.

The budget is about building prosperity from the top down, which means striving for economic growth that trickles down to job opportunities, paycheques and bonuses. This trickling, if it happens, will take a while. Prepare by taking a moment for some honest self-reflection about your personal finances. Here are some questions to tackle:

What have I done lately to defend my job and income?

The unemployment rate has risen to 6.9 per cent from 5.7 per cent two years ago and will climb higher until the economy pulls out of its current funk. Expect layoffs, downsizing, curtailed hiring, more subdued pay increases and fewer opportunities to leverage a job offer elsewhere for advantage in your current position.

The best defence in the job market is to demonstrate your value in the workplace. Be the employee your company wants to retain, no matter what the situation in the economy. Some concrete steps: Talk to your boss about reaching the next rung on your career ladder, look at adding new accreditation or training, propose a new project or ask to be involved in something already under way.

It may be your boss’s fault if you feel unhappy, disrespected or underutilized at work, but it’s still worth trying to move forward on better terms. Knowing where you stand gives you something to work with.

What am I doing to protect and build the Canadian economy?

Emphasizing Canada in your daily purchases and travel supports domestic jobs and economic activity. But the surge of patriotic spending that was triggered by the trade war last winter is bound to dissipate.

Fair enough – grabbing items off the grocery store shelf to see where they’re from can become tedious, and some of the labelling seems to exaggerate the level of Canadian content. Instead, consider focusing your resolve on strategically buying Canadian.

Pick some products that are authentically Canadian and be a regular customer. I’ve redeployed my liquor budget to Canadian spirits from American whisky (a.k.a. bourbon) and been more than satisfied. Also, we’re travelling more in Canada. Last month, we went to the Northwest Territories to see the Northern Lights. Couldn’t recommend it more.

How am I letting corporate Canada know that I can’t afford my life any more?

While the inflation rate is back down to levels that appear normal by long-term standards, the damage done by past price hikes is baked into everything we buy now. There is no going back to the prices of yesteryear, but we’re not powerless against rising prices.

Firm demand from consumers helps sustain prices at current levels. If we ease back on purchases in some areas, businesses may respond with discounts, sales or at least price stability. Beef is super-pricey, so we’ve cut back at our home. Cereal is stupid-expensive, so we’re buying less.

Also, the time is coming for a major rethink of restaurants. The cost of food and alcohol at some places is getting prohibitive, and I say this as someone who used to be more than comfortable with a splurgey dinner. We’re already eating out less and thinking harder about where we go.

How would I cope if the stock market fell 25 per cent?

If the federal budget accomplishes what it sets out to do, then we will have a level of economic growth that supports a strong stock market. The fact that stocks have been surging despite tepid growth suggests a disconnect that won’t last indefinitely. Any development that surprises investors in a negative way could trigger the next correction.

Plan now for upset ahead. Check your portfolio diversification between stocks and bonds and your exposure to trendy stocks and funds that profit from hot trends such as AI. Now’s a great time to reduce exposure to winning investments and build a margin of safety in the form of bonds, guaranteed investment certificates and cash-equivalent investments such as money market or high-interest savings funds.

Another way to prepare for stock market declines is to check out how much money you’ve made in the past five years. It’s probably way above normal levels – so much so that you can give some back and still be in a good position.

Are you a young Canadian with money on your mind? To set yourself up for success and steer clear of costly mistakes, listen to our award-winning Stress Test podcast.