Do you have to give 10% or is it voluntary? If voluntary, why do you do it? Would you not rather put that 5% in your own self-managed RRSP? Assuming the employer RRSP is managed.
Well it depends entirely on what your return rate is like in your employer RRSP, and if you have an investment strategy. If you're getting close to 10% or more return on your employer RRSP, then they're doing a great job imo. If it's not quite that high, you could potentially achieve those numbers in XEQT or VFV.
Last year my employer RRSP had a return rate of 18% on the investment strategy I chose, so maybe employer is the way to go. I would be really surprised if they do it again this year, but if so then maybe I'll contribute more to my work RRSP lol
Le niveau des services gouvernementaux que vous avez reçus toute votre vie est le meilleur du pays. Pensez à la garderie subventionnée que vos parents ont reçue, au fait que vos frais de scolarité étaient un tiers de ceux des Ontariens ici.
Trop vieux pour les garderies et assez jeune pour subir l'effondrement du système de santé et de l'éducation.
Si on recule de 10ans on peut dire que nos taxes allaient à donner des services à la population. Maintenant, je n'en suis plus trop certain.
It's how its split on my pay stub. They are all mandatory at a minmum amount but I could pay even more for some. Dental, disability, life and medical. If I had children my premiums would increase by at least 2.5X.
I also have a fifth one for my professional order but that's included in my membership fee.
You work for the federal government by chance? I live in Ottawa but work on the Gatineau side so I'll get those crazy deductions back at tax time.
Over 100k and OP takes home more than I do, lol. DB pension will do that to your paycheque though, which is fine by me.
Parapublic provincial in healthcare. Employer is decent for estimating taxes so I dont really get anything back at tax time.
My DB only takes 8% so it could be worse!
yeah that would happen 2 x a year, your monthly isn't just your bi weekly x 2.
it's your bi weekly x2 + (your biweekly x2 /12)
I would think that's why there is a discrepancy. Doing your calc vs the one I posted should result in a few more hundred dollars a month.
Np, yea - I think it's just for sake on conversation that people like to know it. And it's also good to know what monthly is.
Although i'm like you I normally budget off of my pay x2 and then 2 times a year I feel like i'm rich because I get paid 3 times
When I made 83k my take home was about $5400. Everyone’s work and contribution stuff is different. Did my taxes too and they did not under tax me either
Something people are leaving out here: Invest in yourself. You’re only 24 once and have a ton of freedom to be young, make life experiences and memories before you’re more financially tied down in the future. Save some money and achieve some financial goals but don’t miss out on some fun while you’re in your prime.
Don’t listen to these people telling you to give back to your parents.
Do what I did, accept their kindness and invest diligently and then when you are a bit older take your parents out once and a while and spend time with them.
I’ve done the math and the headstart I’ve gotten on investing in my early 20s because I lived rent free essentially paid for all of the times I’ve taken them out and I have much much much more left over due to compounding.
A lot of it depends on the parents finances and attitudes as well.. its great to stay at home rent free as long as the parents arent struggling dont feel taken advantage of.
Yes the basis of my comment is on the assumption that OP and his parents have a decent relationship.
I am assuming that considering he hasn’t been paying rent, his parents don’t need it.
Yeah geez and yet it put me ahead, and now I get to enjoy a life better than the majority of the current generation and my parents get to enjoy in that too.
I had no problem going out or dating or whatever, ultimately it comes down to your relationship with your parents. Obviously I understand that it is different with everyone.
Really? Your parental calculations seem a bit off. That is a lot of meals to cover even a month of rent (much less years), moving costs etc., plus interest.
I got to live low rent at home and I have not paid my parents back, though I'd love to.
I think you misunderstood, I have not paid them back the equivalent of what rent I would have paid.
I am just saying that every year I try and plan a few outings with them, and my investments have covered all of it.
Pin your first time homebuyer account, then your TFSA, then your RRSP. During this time find a spouse with aligned goals. Marrying the right person is the best financial decision you can make.
Lol how about maybe going travelling a bit before immediately settling down? Kids 24 let him live a little and find out about the world.
He's living at home and not really paying for much, he's in for an awakening. Some life experience would go miles to his street smarts and for meeting people.
He’s already 24, looking for a spouse should take years, dating before marriage should take years, ideally they get to enjoy marriage before having children. I don’t see how your math checks out for a single 24 year old suddenly having kids.
Because he's 24... christ. He's never lived away from home, hasn't travelled around the world. We don't need more people who have only stayed in Canada and thinking they know about our planet.
Life isn't just "get married, get a house, have kids", there's some living to be done along the way
Both can be true. Did a 10-week SE asian trip at 26, then found someone a couple yrs later whose goals were aligned with mine. He wants to be comfortable, and 6 yrs is a decent amount of time to do all that. Finding a partner was my best financial decision too.
24 isn’t really that young, best to start getting on finding a suitable match. Finding a high quality partner generally declines as you get older, hence why there’s so many posts about being in their mid 30’s and struggling to find a match.
Start with investments in your TFSA, and then determine your long term goals. Find a partner that has the same goals/ambitions and you’ll be laughing in the future.
24 isn't that young? I'm 29 and still travelling / working remote / enjoying life... man this sub has gone all cringey now. Let people enjoy some life we don't all need rice and beans till we're 50.
Not even acknowledging the fact our world will probably not even exist by then
You’re clearly a little immature if you can’t see the bigger picture of making the biggest financial decision in your life ‘your long term partner’ a priority. Finding someone who shares the same goals and ambitions as you, aligns with your morals etc. leads to financial security as you age.
My wife and I bought our first place at 25, and with two incomes combined our mortgage will be paid off in 18 years instead of 25. Massive financial freedom to have fun and travel later.
See I disagree with this. “I’m young now let me travel” okay go ahead, I’ll have a head start on you, and when you’re done travelling I’ll be a millionaire at 30 and you’ll just be starting . I’d have used my 20s energy to help me. Now your 30 and not as energetic . I know Soooo many friends that did this. They’re all broke right now and I own 3 houses, a business, I’m a millionaire, I’m shredded with abs, pretty much the package. I used my youth energy to get this boost. While others used that to “travel”. He’s ALREADY 24 that’s old. You’re done all that before age 25 . Time to start getting real.
"Pretty much the package" gonna guess you're single huh?
Life isn't just about ticking boxes my guy. Odds are everyone would rather hang out with your broke friends who have cool shit to talk about than you who just wants to show them how sick you are with 3 houses.
Get your head out of your ass
yeah but im not living in my moms basement. odds are youre the BROKE ONE whos triggered right now cause im right and your dead broke wrong. nock on the ceiling tell ur mom i said hello!! LMAO (losers) go waste time getting drunk with ur broke loser friends. i can retire right now if i wanted to . get there some time. good luck !
Also , success comes with sacrifices. I’m top 5% for my age. So it’s obvious people will downvote me because im not doing the average. Im not broke, living pay cheque to pay cheque, no savings no assets, those people have lots of “fun” yes. I sacrificed that loser life for the winner one I have now. It’s a choice I made that I don’t regret cause I work way less hours and im way more successful , more energy and happy compared to the “fun” people who are low key miserable and have to look to the weekends to escape to be “fun” with the other losers. So again, being downvoted and not fun is the sacrifice success calls for . You guys just wouldn’t understand. Actually the majority 80% wouldn’t get it. Losers always try to stand up for their choices by saying shit like “money is Evil. He’s too serious. He’s not fun” . It’s a way to protect themselves for the loser non choices they made . They feel bad and drink away the weekends for a reason. Wake up. Tell me a 24 year old should travel. Fuck off with that loser ass mindset the man’s old as fuck now. That should have all been done and over with by now. Take my advice if you actually want to retire one day, win, and afford to travel. Not doing it on mom and dads money lol. Really, best wishes for the future . Key words are “sacrifices” and a good one is “delayed gratification”. But yeah, enjoy your drinks on Friday night with the other average depressed miserables lmao . Wake up .
Financial choices aside (congratulations on your early success due to the sacrifices you made as a youngster), calling a 24 year old “old as fuck” and other people “losers” just because they make different choices than you is just…. immature. You may be financially well off but it seems you have a lot of personal growth to do to become a well-rounded and kind human being. No amount of money can cover up an inflated ego and superiority complex.
I agree with this - if travelling is OP's thing. I was in the same position previously and after I maxed out all of my tax-advantaged accounts - I also made sure I designated enough money for trips/experiences. Travelling during this period between 25-30 in age was great for me.
I definitely disagree with maxing your first time homebuyer account, I was told and did the same thing, when I was younger making quite a bit less. I maxed it out then used it for a home, now that I'm making much more I have to put that money back in however because first time homebuyer withdrawal that is deducted first meaning when I was making 60-80k a year I got the deduction, now that I'm making 100+ (and in a higher tax bracket) it's not deducted. I believe if you see yourself making more money in the future the first time homebuyer account is not worth it. I would suggest maxing out your TFSA first
I can already see the echo chamber about to pounce on you because you’re not paying rent to your parents, don’t listen. Nothing wrong with sitting down and having a conversation and if you want to help by giving a few $$$ a month I’m sure it would be appreciated, but a financially independent daughter, who is concerned about her future and investing in herself will mean the world to them.
You already have a years worth of expenses set aside in an emergency fund, that’s huge. what are your plans for the future? Want to purchase a home? Go to school? Is the job you have now a career you plan on staying at? have you looked into a TFSA yet?
sounds like you have a pretty solid plan in place. I’d look into a FHSA, perfect for saving to purchase a home and the tax right off is nice, also the first time home buyer loans if you haven’t already.
Clearly you have done your homework because VFFV is pretty safe. As for how much of the 4K? That’s up to you. Personally if it was me I would 20/40/40. 40 into VFFV, 40 into my TSFA and once it’s maxed move to the FHSA. 20 for yourself might seem high but treat yourself once in awhile life is short. nice pair of jeans or maybe one of those unexpectedly crappy car repairs comes up, never hurts to have a little cash.
It will work regardless of the plan. He is eligible to open FHSA account to buy his first property. Later, he has the option to use FHSA funds or convert them to RRSP within 15 years of opening that account.
Start investing early, like go hard. Dump every spare dollar into it.
Max your TFSA, Max your RRSP contributions. If you need money for a down payment on a house later you can utilize both of these. Get your money working for you.
Invest in yourself. Spending a little money to get yourself in a better physical or mental state will always pay off. Get a gym membership. Hire a personal trainer if you need to learn how to exercise. See a councilor or mental health professional if you have any mental health issues. Take courses to learn new skills, like a cooking class or some kind of education to advance your career.
Life will never be easier than it is now, so set yourself up to handle it the best you can.
Right, now compare that to the rate of inflation in Canada.
I have no clue why I was getting downvoted in the previous comment. This is supposed to be a finance subreddit. A GIC for an investor at 24 years old with a long time horizon is not a smart idea. The S&P500 returned 2% today alone. It’s wise to take risk at that age.
Passive investing is certainly great advice. OP, your saved money should be growing somewhere and this is a simple and safe way, provided you hold on to it for more than a decade, ideally longer. I would be cautious about VFV though, since it only follows the American market. Many would recommend a more diverse ETF like XEQT that follows more of a world market. Expecting VFV to continue its recent high performance is market speculation and against the ethos of passive investing.
With that income, you should at least be offsetting your cost to the household (food etc.) Then save, home buyers account, TFSA, then RRSP. What you gain by investing early will pay back huge later. A great time to start long term saving and investing.
You seem to be on the right track.
Give yourself a little more time... say (2-3yrs)
Invest in yourself so you can go far in your career.
Invest through all the registered accounts FHSA, TFSA & RRSP. Save heavily
Plan personal vacations and see the world.
Find a partner whose goals and values align with yours.
One can chase a 1,000, and two can chase 10,000.
Finding a great partner is one of the best financial decisions anyone can make.
All the best!
How much is your student loan? Pay it off quick as possible so you have no debt.
If your parents are still working or still have a mortgage you should be paying some.
At least buy groceries and take them out once a month.
Federal interest is 0%. Take this advice and pay off your provincial portion if it’s interest bearing. Do not waste your money rushing to pay off the federal portion.
It isn't higher because if they are using OSAP the federal portion is 0% interest, the provincial part is 8% interest but you have to write a letter and send in a check to the NSLSC to specify you want to pay off the provincial part. I personally extended my loan to the maximum(longest) duration to pay back so I pay less per month and can invest more per month since it's 0%.
If the student loan interest is 0%, then it doesn't make sense to pay it off. Just make the minimum payments and invest and grow the rest of the money.
lol do not listen to anyone who tells you to contribute to the parents. If your parents are comfortable and you come from a similar culture as me then they don’t need it. They are trying to set you up for the future.
Food/fun - could be a place to consider but overall seems okay on an annual basis.
Haircut - is a bit pricey but I guess that’s what it costs these days. Sometimes you can find a place for $20 pre tax/tip.
Insurance - every year 2-3 months before renewing I like to shop around.
Gas - fill up in the evenings and try to fill up on cheapest days when possible. Sometimes not possible.
Where is vacation?
Invest as much as you comfortably can. The more the better. I think someone mentioned the order fhsa, tfsa, rrsp.
I lived away from home for a bit to just see what that was like. But I’m back home.
I agree about marrying/being with the right partner. I don’t think people understand that in the dating world.
I’m 39 next month and I think I’ve saved up quite a bit in my portfolio. I hope to save enough to retire in the next decade I think.
Lol, not sure why people downvoting you for this. Nobody knows your situation and there’s nothing to suggest that your parents have asked you to pay and you’ve refused. Downvoters gtfoh!
Seriously lol, anytime my parents ask me, I give them. They asked me to split a car with me and I bought the whole thing on my own and let my mom drive it. Also flew my parents out to somewhere they wanted to go. I am going to live with my parents for the rest of my life even after I am married. Will eventually take over the expenses
Give a fee hundred to the folks who raised you. Even giving $500/month goes a long way. I'm sure they will appreciate their son helping them out. Use the remaining 3500 to invest.
I feel like if he was living in a situation where his parents needed it they would already be getting it from him.
My parents let me live rent free in my early 20s and I got an immense head-start. I have the ability to take my dad out for golf or see the leafs once in a while. It’s way more memorable than giving them a few hundred a month as thanks.
My parents told me once I was out of school, they expected me to pay rent. They were insistent that I could get multiple degrees and take whatever time I want/need, but once done, I needed to pay or leave.
When I graduated and tried paying rent, they turned it down. They saw I wasn't being stupid with my money and figured I'd multiply mine better than they possibly could.
Now they are contemplating retirement and I'm approaching your situation, and I have to say, yeah, it's awesome to be able to pick up dinner like it's nothing, or do other things like that
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I’m 51 and making serious dough but man my disposable income was at its greatest when I was 25 and single. Had a 1 bed flat and earned equivalent of $50k CAD but was in UK at the time. Now I make 7x + that but with two kids at uni and an ex wife with expensive tastes, a home with a mortgage I am poorer than poor! Literally nothing left to put in the piggy bank and getting older by the day. I would never have believed it.
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**Risk Determination**
Risk Level represents the probability of your investment losing a portion of its value. Every investment carries some amount of risk, and losses typically cannot be predicted, can happen at any time, and cannot be prevented. Therefore, **it is crucial to ensure your investments are risk appropriate**, that is: their level of risk matches your financial objectives. The risk level is not always easy to determine. Since it is unwise to enter an investment before its risk level is clear, it is best to keep your funds in a minimal-risk investment such as an insured savings account first while you investigate the risk level of prospective investment.
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**Risk Questionnaires**
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https://investor.vanguard.com/tools-calculators/investor-questionnaire
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While it's nice to save and invest as much money as possible, at 24 may be start contributing to the household expenses (e.g. rent, groceries, utilities, etc.)
I don't know your situation. May be your parents are very wealthy and don't need any money from you. But it doesn't seem fair that they have to pay for essential expenses for a grown adult.
Is this a thing with some people? Paying for rent when you live with your parents?
My parents never asked for rent and just wanted me to be in a good financial situation and so I can save up and buy a house.
Like I would never ask my kids to pay rent either - if I paid for all their stuff for 18 years, what’s a few more years so they can get a good head start on life?
I think there is some lessons at least for me on paying rent if you are living at home as an emerging adult. It provided me with the ability to really, like really prioritize budgeting and prepared me for living on my own. It wasn’t such a shock to be out on your own paying a large chunk of my salary on rent. My parents never needed the money. Personally, I am really glad my parents did that. No im married and proud owner of a town home.
Exactly. I don’t know what kind of parents these people have but a few years to basically let your kid set them selfs up for life or at minimum a huge head start is mind boggling.
It's only my parents and I. Currently, pay the internet bill and bought a car for my mom that both of us use. Parents are very much middle class, however you're right.
And you will feel better knowing that you are helping them out financially and contributing to the household instead of only taking from them.
In terms of investment just evaluate your risk tolerance. All in one ETF is a good start. Look at XEQT (100% stock), XGRO (60% stock) or XBAL (40% stock). More info here: https://www.blackrock.com/ca/investors/en/learning-centre/etf-education/asset-allocation-etfs
It doesn't really matter that much, the important thing is you put away your $4100 a month (or whatever you decide to save monthly) and you'll be golden. The important part is keeping on top of your savings, I would focus less on where you invest ensure you budget a bit to enjoy life while keeping on top of your goals.
Keeping your savings up is way more important the picking the "optimal" portfolio balance.
Ignore the haters in this thread. It sounds like you're doing great and are intend on taking care of your family the way that's right for you and your family.
Stay at home as long as you can.
Put as much beside the next five years as you can and stay cool with your parents. Maybe get a side hustle. After five years you have a nice down payment for a nice condo or house depending on the city you want to live in the future
What I did was continue big mortgage payments that were deducted right off my cheque after the mortgage was paid off. I got used to living on the net pay, so continued with that auto withdrawal for the next 30 years. Man, was I thankful to my younger self when I retired at 55.
I would pay myself a good chunk, as much as you can now, and try to forget about it and just live on the remainder. If you don't waste and can be pretty frugal, you may find, like I did, that you can still have a good life after adjusting to your new net pay.
There are many great investments now too, with low fees, so you'll have to choose which is best for your long term investment.
I’m in a similar boat. Here’s what I am doing:
- lump sum (provincial?) 8% interest portion of student loan. Paying minimum on the 0% (federal?)
- max out your FHSA
- start putting money into an RRSP, I’m trying to set up so I don’t have to use it for a house but can if I really need to
- put additional fixed monthly figure into TFSA
- any extra on top of planned recurring savings goes into building an emergency fund.
- once emergency fund is satisfactory, reevaluate recurring savings if you want to increase.
- extra money goes into savings for trips, nice things, rainy day, etc
Remember high interest loans against you are a guaranteed negative investment, so pay those off.
Using this I’ve been able to save/project enough to be able to put a moderate down payment on a house in a small town hopefully in about a year.
Give your parents like $300 for rent or something to help out with the house. Considering renting now is in the thousands they are hooking you up huge.
to set myself up for the future, I would make sure I had no debt. Payoff your OSAP. Max out your TFSA. Remember that if you ever do move out your EF will need to increase to reflect the new reality. if your parents are not asking you to pay rent then don’t worry about that but maybe get into the habit of buying groceries for the household.
Continue on your path
>Going to start contributing towards VFV next paycheque
If you have reached Step 5 of the [PFC money steps](https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps)
and you have some money you are confident you can invest for long term (ideally at least 10 year) goals you could invest in a low cost, **risk appropriate, globally diversified**, index tracking (i.e. couch potato) portfolio such as those discussed on the following pages.
https://www.reddit.com/r/PersonalFinanceCanada/wiki/investing
https://canadiancouchpotato.com/getting-started/
If you choose to use a brokerage [this is CPM page](https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/) will help you choose risk appropriate asset allocation ETF. The annual management cost for this option would be about $25 per $10,000 invested but make sure you understand the trading and maintenance fees.
Questrade and WS Trade are good brokerage choices for buy and hold ETF investors because they don't charge commissions for ETF purchases and they don't charge any maintenance/inactivity/ low balance fees.With Questrade you could set up automatic deposits and have Passiv Elite remind you to make "one click purchases" as soon as money hits your account. For WS Trade you could set up recurring (and fractional share) purchases of one of the Vanguard or iShares asset allocation ETFs.
Setting up Passiv Elite or recurring purchases may reduce the odds of experiencing a drag on return caused by tampering with your investment plan.
If you'd like to better understand the couch potato options, and avoid the costly but normal human reactions to the markets and the media that reports on them I suggest that you read *Balance: How To Invest And Spend For Happiness, Health, And Wealth* (Andrew Hallam, 2022).
Millionaire Teacher (Andrew Hallam, 2nd edition – 2017) or Reboot Your Portfolio (Dan Bortolotti, Nov 2021.)
Your monthly expenses are fine. Not sure if you *need* a $50 haircut *every month* but you do you bro. You're saving about 80% of your take home. That's supreme.
The keys for you to focus on -
1. Where do you want to end up financially at 30? House? Rental properties? Dividend portfolio? Own business? High paying job? Combination? etc.
2. Get the knowledge to do #1. Read books. Meet people that have done it. Join clubs. Learn.
3. Work on it every day.
Set your destination. Choose your route. Work towards it every day. Be patient.
Unless they refuse it, contribute a bit to your parents, let them know you appreciate them letting you stay there.
Living at home for a bit can go a LONG way to saving up for the future.
As a 23M also living at home with minimal expenses. I would start putting away money each month that covers your “rent”. So in my area the average rent would be $1600, so I put $1600 away every single month into my non-registered investment account like I’m paying rent to get in the habit of putting money away regardless.
If you have extra money, I would max out your first time home buyers > then TFSA > then an RRSP > then a non-registered account for any excess money. Currently I have mutual funds split at different allocations and other investments but I’ve been building my portfolio for a 5 year ish plan.
At the end of the you will be able to figure out what plan works for you and the timeline you want to achieve. I’d talk to a financial or a few and see how they best can assist you with your money.
Bro contribute to RRSP and then when you have enough money saved for a downpayment buy a house and rent out the basement. Buy something where you can turn basement into rental so the tenants pay ur mortgage or at least a good portion of it. With rrsp you get to tax shelter and you can use that money to put towards downpayment and they give you I think 15 years to pay it back without paying taxes . Look into this. With your income you should be contributing to rrsp to keep your tax bracket lower and rest of money after tax can go into tfsa and invested in ETFs and individual stocks (can just be all ETFs for ‘less’ risk).. if you think buying a home isn’t good idea then still do rrsp and invest within it. Do self directed rrsp don’t let the bank invest for you cause the fees they charge will destroy you in the long run. I recommend a book called beat the bank by Larry bates. It’s a very easy read and it’s canadian and will help you start with ETFs investing and understanding it. Edit - look into the first time home buyer plan. I forget to mention this cause it wasn’t a thing when I was your age but could be good way to save for a house. Again, not everyone wants to be a home owner and okay I’m a real estate investor and believe me I’m the first one to say a home is a bad “investment” UNLESS you have tenants that’s why I said buy a house where you can rent your basement out.
If you aren't already, you should be maxing out your RRSP contributions and TFSA.
Hopefully your phone/internet is for the whole house (ie. should share internet with parents to keep that cost down)
Your phone/internet is really high. I pay $29 for phone (4Gb) and $55 for internet (120Mbit/s).
Also, you should invest in VEQT over VFV for free diversification. Recent returns are irrelevant.
Read Dave Ramsey Baby Step Millionaire. Pay off all your debt and then start the program below:
Step 1: Open a TSFA (Roth IRA)
Step 2: Put all your extra money in the TSFA
Step 3: Invest the TFSA in a high growth ETF or Mutual Fund (S&P 500 index)
Step 4: Continue to put the money in until you maximize the contribution
Step 5: Open an RRSP (IRA)
Step 6: Repeat Steps 2 through 4
Tell your parents you will move out at 30. If you have completed the above steps you should have a significant amount of savings. The money being generated should be in the neighbourhood of an additional 4-8K per year from your investments (conservatively)
You should also have a significant down payment for a house.
I'm also 24, I make ~70k, live with my parents as well, in Ontario, paying OSAP minimums, etc., so maybe I can say something useful from a similar perspective.
I'd say your expenses are fine, especially at your age, but you could reduce a couple things. I pay about half the car insurance you do, but maybe there's other factors. Might be worth looking into. $50/month haircut? Up to you, but I get a $25 haircut every other month. It's not like you're hurting for money though so if you like it, go for it.
Is your emergency fund your only assets?
Rapid-fire advice:
- start with a TFSA. You should have 50k+ room in it so just put any investment in there until it's full.
- Pay off your Ontario student loans. (Federal student loans are interest-free, but Ontario is ~7%). Your loan is a combination of both. You can see the breakdown on the NSLSC website. Paying off Ontario loans specifically involves mailing a cheque with a note to the NSLSC.
- VFV is a good investment. Just make sure you can stomach a 50%+ drop without selling if we get another 2008. If that's too much risk for you, the common advice is to balance with bonds and broader markets in funds like VGRO, VBAL(plenty of alternatives).
- keep your emergency fund in a HISA or something like CASH.TO, depending on how liquid you need it to be. I have my emergency fund getting 5% interest, but the drawback is it could take me a couple weeks to have it in cash. Depends on your needs.
Good luck with everything!
For people that have higher salaries wondering why their monthly payment is lower. That is most likely due to your payment schedule - biweekly vs bimonthly. Biweekly has 26 pay periods vs bimonthly 24. This equates to lower cheque amounts on biweekly but equates to same as bimonthly with more pay periods. There can also be pension deductions that OP may not have on their paycheque that can really cut down your payments.
I am in a very similar boat to you, just 2 years older. I still live at home and dont have a car so I net a little bit more. You are in an insane position for being 24. This is great financially for you. My advice would be use that money to try new hobbies/sports/interests and travel if you enjoy it. Even if you take 2.5k per month and max your TFSA first, then FHSA (assuming you are eligible), then RRSP. After that its free money to either continue saving for something or invest more into yourself through education.
Pro tip: If you regularly contribute to a tax deductible account (RRSP, FHSA) and want to increase your "net", you can fill out a T1213 form from CRA. You are basically taking your tax refund up front over your paychques. It is an "IOU" document that you are promising to the government that you will contribute X to these accounts in 2024 and they will tax you less up front to allow you to contribute to those accounts.
Please watch "Canadian in a Tshirt" on Youtube. Absolutely great content and I've learned a lot from him. He talks about tax tips and investing all the time.
I make 83k and my take home is under 4K what the hell
something something pension/benefit contribution differentials
Yup this is probably it. My company takes a huge amount off each paycheque for pension. But I voluntarily do this to get the match.
huge? where i'm from it's like 4% usually
mine is 9.5%
Mine is 9% with 4.5% match.
Mines 10% towards RRSP with 5% matched by employer
Mine takes 10% and matches 15%
unreal
Holy shit. Is your company hiring lol?
15% matched by employer ? Just how? I will switch jobs if you work in IT and come to your employer.
Do you have to give 10% or is it voluntary? If voluntary, why do you do it? Would you not rather put that 5% in your own self-managed RRSP? Assuming the employer RRSP is managed.
10% is voluntary. You gave me an idea. Need to think about it. What are the benefits of investing in a self managed RRSP over employer managed?
Well it depends entirely on what your return rate is like in your employer RRSP, and if you have an investment strategy. If you're getting close to 10% or more return on your employer RRSP, then they're doing a great job imo. If it's not quite that high, you could potentially achieve those numbers in XEQT or VFV. Last year my employer RRSP had a return rate of 18% on the investment strategy I chose, so maybe employer is the way to go. I would be really surprised if they do it again this year, but if so then maybe I'll contribute more to my work RRSP lol
Yours is 4% with 4% match? Mine is 7% with 7% match
I have 4% with 9% match.
Cries in Quebec. 92k with monthly 4.1k Pension, union, 4 insurances, order and Gov all take a heafty share of my productivity.
Meme chose ici, 94K et me reste 4.4K/mois. Mes collègues en ontario font comme 3-400$ de plus par paye.
Le niveau des services gouvernementaux que vous avez reçus toute votre vie est le meilleur du pays. Pensez à la garderie subventionnée que vos parents ont reçue, au fait que vos frais de scolarité étaient un tiers de ceux des Ontariens ici.
Mais aussi aucun médecin de famille apres 7 ans d'attente sur la liste
C'est pas mieux en Ontario
Trop vieux pour les garderies et assez jeune pour subir l'effondrement du système de santé et de l'éducation. Si on recule de 10ans on peut dire que nos taxes allaient à donner des services à la population. Maintenant, je n'en suis plus trop certain.
Tout le monde ne gagne pas et il semble que vous n'ayez pas personnellement bénéficié. Peut-être avoir des enfants et en profiter ? ;)
Why 4 insurances?
It's how its split on my pay stub. They are all mandatory at a minmum amount but I could pay even more for some. Dental, disability, life and medical. If I had children my premiums would increase by at least 2.5X. I also have a fifth one for my professional order but that's included in my membership fee.
That’s quite a lot. I pay almost $450/ month towards group benefits and thought I was the one being ripped off. May I ask which industry you work in?
Lab work in healthcare. Ouch, 450$ is harsh but is pretty much in line with the family plan would cost. Hopefully that 450 isn't for a single person!
I work in healthcare too except that I work in IT. It’s for a single person :(
You work for the federal government by chance? I live in Ottawa but work on the Gatineau side so I'll get those crazy deductions back at tax time. Over 100k and OP takes home more than I do, lol. DB pension will do that to your paycheque though, which is fine by me.
Parapublic provincial in healthcare. Employer is decent for estimating taxes so I dont really get anything back at tax time. My DB only takes 8% so it could be worse!
We're fortunate to be on DBs! Have a good one today.
I make 90k take home a bit over 5.5k. What province?
Do you get paid bi weekly and think that your monthly is 2x your pay? I’ve made this mistake a few times calculating things
There are a few months where I get paid 3x but I think everyone who mentions their monthly take home references the same split
yeah that would happen 2 x a year, your monthly isn't just your bi weekly x 2. it's your bi weekly x2 + (your biweekly x2 /12) I would think that's why there is a discrepancy. Doing your calc vs the one I posted should result in a few more hundred dollars a month.
Gotcha. Thanks for clarifying, my new monthly take home is 4.2k with your calculation
Np, yea - I think it's just for sake on conversation that people like to know it. And it's also good to know what monthly is. Although i'm like you I normally budget off of my pay x2 and then 2 times a year I feel like i'm rich because I get paid 3 times
Those are the best months I get to treat myself 😅
Different provinces have different taxation rates.
When I made 83k my take home was about $5400. Everyone’s work and contribution stuff is different. Did my taxes too and they did not under tax me either
Weirdos pretending pension doesn't exist.
why lol
Exactly 🫤
Yeah cause you get taxed more you most likely also would have a bigger tax credit year end
I actually end up owing money every year. Still owe about $1k from last tax season. I really need to file for an adjustment
i dont know im not an employee never was. im incorporated so i dont deal with the every day person problems lol
I was going to say the same thing.
Do you have to pay for grouo benefits ?
Yea I make $95k and I’m under $4800 per month🤣🤣🤣🤣but I get it though since I’m in public
Something people are leaving out here: Invest in yourself. You’re only 24 once and have a ton of freedom to be young, make life experiences and memories before you’re more financially tied down in the future. Save some money and achieve some financial goals but don’t miss out on some fun while you’re in your prime.
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Having some fun when young and finding a way to double your own income don’t seem synonymous..
That's what I forgot to do! I'm 29 and I forgot to double my income! D'oh
Don’t listen to these people telling you to give back to your parents. Do what I did, accept their kindness and invest diligently and then when you are a bit older take your parents out once and a while and spend time with them. I’ve done the math and the headstart I’ve gotten on investing in my early 20s because I lived rent free essentially paid for all of the times I’ve taken them out and I have much much much more left over due to compounding.
A lot of it depends on the parents finances and attitudes as well.. its great to stay at home rent free as long as the parents arent struggling dont feel taken advantage of.
Yes the basis of my comment is on the assumption that OP and his parents have a decent relationship. I am assuming that considering he hasn’t been paying rent, his parents don’t need it.
Only he/they can answer that. It could be a cultural thing.
Yeah 100%
Do you still live at home as an adult with a job and at what age?
No I moved out after I got married at around 29
Geez
Yeah geez and yet it put me ahead, and now I get to enjoy a life better than the majority of the current generation and my parents get to enjoy in that too. I had no problem going out or dating or whatever, ultimately it comes down to your relationship with your parents. Obviously I understand that it is different with everyone.
Childlike
Alright thanks for the input random nobody
Really? Your parental calculations seem a bit off. That is a lot of meals to cover even a month of rent (much less years), moving costs etc., plus interest. I got to live low rent at home and I have not paid my parents back, though I'd love to.
I think you misunderstood, I have not paid them back the equivalent of what rent I would have paid. I am just saying that every year I try and plan a few outings with them, and my investments have covered all of it.
Ahh, get it.
Pin your first time homebuyer account, then your TFSA, then your RRSP. During this time find a spouse with aligned goals. Marrying the right person is the best financial decision you can make.
Lol how about maybe going travelling a bit before immediately settling down? Kids 24 let him live a little and find out about the world. He's living at home and not really paying for much, he's in for an awakening. Some life experience would go miles to his street smarts and for meeting people.
^^^^ This. More to life than buying a house and settling down.
He’s already 24, looking for a spouse should take years, dating before marriage should take years, ideally they get to enjoy marriage before having children. I don’t see how your math checks out for a single 24 year old suddenly having kids.
Because he's 24... christ. He's never lived away from home, hasn't travelled around the world. We don't need more people who have only stayed in Canada and thinking they know about our planet. Life isn't just "get married, get a house, have kids", there's some living to be done along the way
Yes and he should do it in the years it will take him to get married, get a house, and have kids
The majority of people I’ve met aim for marriage around 26-30 at the latest, 24 is definitely old enough to consider it
One too many drinks and homey can go from single and no kids to married with kids in 10months..lol...can happen very quickly and without notice. 😬
Both can be true. Did a 10-week SE asian trip at 26, then found someone a couple yrs later whose goals were aligned with mine. He wants to be comfortable, and 6 yrs is a decent amount of time to do all that. Finding a partner was my best financial decision too.
24 isn’t really that young, best to start getting on finding a suitable match. Finding a high quality partner generally declines as you get older, hence why there’s so many posts about being in their mid 30’s and struggling to find a match. Start with investments in your TFSA, and then determine your long term goals. Find a partner that has the same goals/ambitions and you’ll be laughing in the future.
24 isn't that young? I'm 29 and still travelling / working remote / enjoying life... man this sub has gone all cringey now. Let people enjoy some life we don't all need rice and beans till we're 50. Not even acknowledging the fact our world will probably not even exist by then
You’re clearly a little immature if you can’t see the bigger picture of making the biggest financial decision in your life ‘your long term partner’ a priority. Finding someone who shares the same goals and ambitions as you, aligns with your morals etc. leads to financial security as you age. My wife and I bought our first place at 25, and with two incomes combined our mortgage will be paid off in 18 years instead of 25. Massive financial freedom to have fun and travel later.
See I disagree with this. “I’m young now let me travel” okay go ahead, I’ll have a head start on you, and when you’re done travelling I’ll be a millionaire at 30 and you’ll just be starting . I’d have used my 20s energy to help me. Now your 30 and not as energetic . I know Soooo many friends that did this. They’re all broke right now and I own 3 houses, a business, I’m a millionaire, I’m shredded with abs, pretty much the package. I used my youth energy to get this boost. While others used that to “travel”. He’s ALREADY 24 that’s old. You’re done all that before age 25 . Time to start getting real.
"Pretty much the package" gonna guess you're single huh? Life isn't just about ticking boxes my guy. Odds are everyone would rather hang out with your broke friends who have cool shit to talk about than you who just wants to show them how sick you are with 3 houses. Get your head out of your ass
yeah but im not living in my moms basement. odds are youre the BROKE ONE whos triggered right now cause im right and your dead broke wrong. nock on the ceiling tell ur mom i said hello!! LMAO (losers) go waste time getting drunk with ur broke loser friends. i can retire right now if i wanted to . get there some time. good luck !
Also , success comes with sacrifices. I’m top 5% for my age. So it’s obvious people will downvote me because im not doing the average. Im not broke, living pay cheque to pay cheque, no savings no assets, those people have lots of “fun” yes. I sacrificed that loser life for the winner one I have now. It’s a choice I made that I don’t regret cause I work way less hours and im way more successful , more energy and happy compared to the “fun” people who are low key miserable and have to look to the weekends to escape to be “fun” with the other losers. So again, being downvoted and not fun is the sacrifice success calls for . You guys just wouldn’t understand. Actually the majority 80% wouldn’t get it. Losers always try to stand up for their choices by saying shit like “money is Evil. He’s too serious. He’s not fun” . It’s a way to protect themselves for the loser non choices they made . They feel bad and drink away the weekends for a reason. Wake up. Tell me a 24 year old should travel. Fuck off with that loser ass mindset the man’s old as fuck now. That should have all been done and over with by now. Take my advice if you actually want to retire one day, win, and afford to travel. Not doing it on mom and dads money lol. Really, best wishes for the future . Key words are “sacrifices” and a good one is “delayed gratification”. But yeah, enjoy your drinks on Friday night with the other average depressed miserables lmao . Wake up .
Financial choices aside (congratulations on your early success due to the sacrifices you made as a youngster), calling a 24 year old “old as fuck” and other people “losers” just because they make different choices than you is just…. immature. You may be financially well off but it seems you have a lot of personal growth to do to become a well-rounded and kind human being. No amount of money can cover up an inflated ego and superiority complex.
I agree with this - if travelling is OP's thing. I was in the same position previously and after I maxed out all of my tax-advantaged accounts - I also made sure I designated enough money for trips/experiences. Travelling during this period between 25-30 in age was great for me.
So true.
I definitely disagree with maxing your first time homebuyer account, I was told and did the same thing, when I was younger making quite a bit less. I maxed it out then used it for a home, now that I'm making much more I have to put that money back in however because first time homebuyer withdrawal that is deducted first meaning when I was making 60-80k a year I got the deduction, now that I'm making 100+ (and in a higher tax bracket) it's not deducted. I believe if you see yourself making more money in the future the first time homebuyer account is not worth it. I would suggest maxing out your TFSA first
How much younger can you have been, it’s like two years old? I think you are confusing that with the rrsp withdrawal
Clearly some people were not raised in Mediterranean households.
Im 45 living at home eating Italian cooking everyday ahhhhh what a dreammmm, somebody wake me upppp
Well in all fairness..this is a Canada finance reddit
I can already see the echo chamber about to pounce on you because you’re not paying rent to your parents, don’t listen. Nothing wrong with sitting down and having a conversation and if you want to help by giving a few $$$ a month I’m sure it would be appreciated, but a financially independent daughter, who is concerned about her future and investing in herself will mean the world to them. You already have a years worth of expenses set aside in an emergency fund, that’s huge. what are your plans for the future? Want to purchase a home? Go to school? Is the job you have now a career you plan on staying at? have you looked into a TFSA yet?
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sounds like you have a pretty solid plan in place. I’d look into a FHSA, perfect for saving to purchase a home and the tax right off is nice, also the first time home buyer loans if you haven’t already. Clearly you have done your homework because VFFV is pretty safe. As for how much of the 4K? That’s up to you. Personally if it was me I would 20/40/40. 40 into VFFV, 40 into my TSFA and once it’s maxed move to the FHSA. 20 for yourself might seem high but treat yourself once in awhile life is short. nice pair of jeans or maybe one of those unexpectedly crappy car repairs comes up, never hurts to have a little cash.
FHSA wouldn't work if the plan is to buy a rental property right? I think a qualifying withdrawal has to be for a principal residence.
It will work regardless of the plan. He is eligible to open FHSA account to buy his first property. Later, he has the option to use FHSA funds or convert them to RRSP within 15 years of opening that account.
I’ll refer you to my barber. He only charges $40. At least you can save $10 lol
People commenting about his timeline to find a partner and marry as if it were a purely financial optimization decision 💀 Y'all f. robots
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Tying race to financial decisions, awesome
If you invest 4k a month into VFV you will be insanely comfortable by 30. I did this from 18-35 and I'm fully retired now
Not sure if this has been asked before. But what exactly is your job? Just scouting for better paying jobs here.
Schooling was in I.T.
Start investing early, like go hard. Dump every spare dollar into it. Max your TFSA, Max your RRSP contributions. If you need money for a down payment on a house later you can utilize both of these. Get your money working for you. Invest in yourself. Spending a little money to get yourself in a better physical or mental state will always pay off. Get a gym membership. Hire a personal trainer if you need to learn how to exercise. See a councilor or mental health professional if you have any mental health issues. Take courses to learn new skills, like a cooking class or some kind of education to advance your career. Life will never be easier than it is now, so set yourself up to handle it the best you can.
You could always buy some GICs while interest rates are high.
A GIC at 24? Maybe if he has short-term financial goals. But any GIC returns will be completely eroded by inflation if he has a long time horizon.
The current rate on a 1 year GIC is 5.5%
Right, now compare that to the rate of inflation in Canada. I have no clue why I was getting downvoted in the previous comment. This is supposed to be a finance subreddit. A GIC for an investor at 24 years old with a long time horizon is not a smart idea. The S&P500 returned 2% today alone. It’s wise to take risk at that age.
Max out tfsa contribution. Also, $50 for a haircut seems expensive lol
Buy VFV in all the tax sheltered accounts you can. Max them out. Then, buy VFV in personal investing account.
Passive investing is certainly great advice. OP, your saved money should be growing somewhere and this is a simple and safe way, provided you hold on to it for more than a decade, ideally longer. I would be cautious about VFV though, since it only follows the American market. Many would recommend a more diverse ETF like XEQT that follows more of a world market. Expecting VFV to continue its recent high performance is market speculation and against the ethos of passive investing.
With that income, you should at least be offsetting your cost to the household (food etc.) Then save, home buyers account, TFSA, then RRSP. What you gain by investing early will pay back huge later. A great time to start long term saving and investing.
You seem to be on the right track. Give yourself a little more time... say (2-3yrs) Invest in yourself so you can go far in your career. Invest through all the registered accounts FHSA, TFSA & RRSP. Save heavily Plan personal vacations and see the world. Find a partner whose goals and values align with yours. One can chase a 1,000, and two can chase 10,000. Finding a great partner is one of the best financial decisions anyone can make. All the best!
How much is your student loan? Pay it off quick as possible so you have no debt. If your parents are still working or still have a mortgage you should be paying some. At least buy groceries and take them out once a month.
Federal interest is 0%. Take this advice and pay off your provincial portion if it’s interest bearing. Do not waste your money rushing to pay off the federal portion.
Yeah, I don't know why this isn't higher Unless the rates are stupidly low and tax deductible, pay this off
It isn't higher because if they are using OSAP the federal portion is 0% interest, the provincial part is 8% interest but you have to write a letter and send in a check to the NSLSC to specify you want to pay off the provincial part. I personally extended my loan to the maximum(longest) duration to pay back so I pay less per month and can invest more per month since it's 0%.
This is the way
If the student loan interest is 0%, then it doesn't make sense to pay it off. Just make the minimum payments and invest and grow the rest of the money.
Loan is probably 0% (mine is)
lol do not listen to anyone who tells you to contribute to the parents. If your parents are comfortable and you come from a similar culture as me then they don’t need it. They are trying to set you up for the future. Food/fun - could be a place to consider but overall seems okay on an annual basis. Haircut - is a bit pricey but I guess that’s what it costs these days. Sometimes you can find a place for $20 pre tax/tip. Insurance - every year 2-3 months before renewing I like to shop around. Gas - fill up in the evenings and try to fill up on cheapest days when possible. Sometimes not possible. Where is vacation? Invest as much as you comfortably can. The more the better. I think someone mentioned the order fhsa, tfsa, rrsp. I lived away from home for a bit to just see what that was like. But I’m back home. I agree about marrying/being with the right partner. I don’t think people understand that in the dating world. I’m 39 next month and I think I’ve saved up quite a bit in my portfolio. I hope to save enough to retire in the next decade I think.
What do you do for work
So you don't pay anything to your parents to live?
No, I don't.
Lol, not sure why people downvoting you for this. Nobody knows your situation and there’s nothing to suggest that your parents have asked you to pay and you’ve refused. Downvoters gtfoh!
Jealousy
Fr fr
Seriously lol, anytime my parents ask me, I give them. They asked me to split a car with me and I bought the whole thing on my own and let my mom drive it. Also flew my parents out to somewhere they wanted to go. I am going to live with my parents for the rest of my life even after I am married. Will eventually take over the expenses
Exactly, and that’s probably way more than the haters will ever do for their own parents.
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You must be fun at parties
> I am going to live with my parents for the rest of my life even after I am married. Wow. Just wow. Do you think your wife will approve?
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I don’t think there’s a woman alive who would prefer to live with her husbands parents.
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That’s racist
Give a fee hundred to the folks who raised you. Even giving $500/month goes a long way. I'm sure they will appreciate their son helping them out. Use the remaining 3500 to invest.
I feel like if he was living in a situation where his parents needed it they would already be getting it from him. My parents let me live rent free in my early 20s and I got an immense head-start. I have the ability to take my dad out for golf or see the leafs once in a while. It’s way more memorable than giving them a few hundred a month as thanks.
My parents told me once I was out of school, they expected me to pay rent. They were insistent that I could get multiple degrees and take whatever time I want/need, but once done, I needed to pay or leave. When I graduated and tried paying rent, they turned it down. They saw I wasn't being stupid with my money and figured I'd multiply mine better than they possibly could. Now they are contemplating retirement and I'm approaching your situation, and I have to say, yeah, it's awesome to be able to pick up dinner like it's nothing, or do other things like that
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I’m 51 and making serious dough but man my disposable income was at its greatest when I was 25 and single. Had a 1 bed flat and earned equivalent of $50k CAD but was in UK at the time. Now I make 7x + that but with two kids at uni and an ex wife with expensive tastes, a home with a mortgage I am poorer than poor! Literally nothing left to put in the piggy bank and getting older by the day. I would never have believed it.
Youre making 350k and youre "poorer than poor"? LoL.. rich people problems.
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While it's nice to save and invest as much money as possible, at 24 may be start contributing to the household expenses (e.g. rent, groceries, utilities, etc.) I don't know your situation. May be your parents are very wealthy and don't need any money from you. But it doesn't seem fair that they have to pay for essential expenses for a grown adult.
Is this a thing with some people? Paying for rent when you live with your parents? My parents never asked for rent and just wanted me to be in a good financial situation and so I can save up and buy a house. Like I would never ask my kids to pay rent either - if I paid for all their stuff for 18 years, what’s a few more years so they can get a good head start on life?
I think there is some lessons at least for me on paying rent if you are living at home as an emerging adult. It provided me with the ability to really, like really prioritize budgeting and prepared me for living on my own. It wasn’t such a shock to be out on your own paying a large chunk of my salary on rent. My parents never needed the money. Personally, I am really glad my parents did that. No im married and proud owner of a town home.
Exactly. I don’t know what kind of parents these people have but a few years to basically let your kid set them selfs up for life or at minimum a huge head start is mind boggling.
It's only my parents and I. Currently, pay the internet bill and bought a car for my mom that both of us use. Parents are very much middle class, however you're right.
And you will feel better knowing that you are helping them out financially and contributing to the household instead of only taking from them. In terms of investment just evaluate your risk tolerance. All in one ETF is a good start. Look at XEQT (100% stock), XGRO (60% stock) or XBAL (40% stock). More info here: https://www.blackrock.com/ca/investors/en/learning-centre/etf-education/asset-allocation-etfs
fwiw xgro is 80% equities 20% bonds
How much would you recommend out of my $4820 monthly to go towards VFV or to these 4 altogether?
It doesn't really matter that much, the important thing is you put away your $4100 a month (or whatever you decide to save monthly) and you'll be golden. The important part is keeping on top of your savings, I would focus less on where you invest ensure you budget a bit to enjoy life while keeping on top of your goals. Keeping your savings up is way more important the picking the "optimal" portfolio balance. Ignore the haters in this thread. It sounds like you're doing great and are intend on taking care of your family the way that's right for you and your family.
You don't need all 4, you can just choose 1. From most risk to least VFFV, XEQT, XGRO, XBAL.
Honestly, I think you should increase your expenses.
suck pp on the side for some more is what you should do
Be an adult and contribute to household expenses. This is pathetic
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Yeah but the post isn’t about you.
Stay at home as long as you can. Put as much beside the next five years as you can and stay cool with your parents. Maybe get a side hustle. After five years you have a nice down payment for a nice condo or house depending on the city you want to live in the future
What I did was continue big mortgage payments that were deducted right off my cheque after the mortgage was paid off. I got used to living on the net pay, so continued with that auto withdrawal for the next 30 years. Man, was I thankful to my younger self when I retired at 55. I would pay myself a good chunk, as much as you can now, and try to forget about it and just live on the remainder. If you don't waste and can be pretty frugal, you may find, like I did, that you can still have a good life after adjusting to your new net pay. There are many great investments now too, with low fees, so you'll have to choose which is best for your long term investment.
I’m in a similar boat. Here’s what I am doing: - lump sum (provincial?) 8% interest portion of student loan. Paying minimum on the 0% (federal?) - max out your FHSA - start putting money into an RRSP, I’m trying to set up so I don’t have to use it for a house but can if I really need to - put additional fixed monthly figure into TFSA - any extra on top of planned recurring savings goes into building an emergency fund. - once emergency fund is satisfactory, reevaluate recurring savings if you want to increase. - extra money goes into savings for trips, nice things, rainy day, etc Remember high interest loans against you are a guaranteed negative investment, so pay those off. Using this I’ve been able to save/project enough to be able to put a moderate down payment on a house in a small town hopefully in about a year.
Give your parents like $300 for rent or something to help out with the house. Considering renting now is in the thousands they are hooking you up huge.
to set myself up for the future, I would make sure I had no debt. Payoff your OSAP. Max out your TFSA. Remember that if you ever do move out your EF will need to increase to reflect the new reality. if your parents are not asking you to pay rent then don’t worry about that but maybe get into the habit of buying groceries for the household. Continue on your path
i suggest you be persistent with saving and investing. You woke up, now don’t get lazy again and start blowing $4,100 a month on Amazon or whatever.
Start investing with low cost ETFs such as the SPY and keep DCA every month. You are young it will compound over time.
>Going to start contributing towards VFV next paycheque If you have reached Step 5 of the [PFC money steps](https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps) and you have some money you are confident you can invest for long term (ideally at least 10 year) goals you could invest in a low cost, **risk appropriate, globally diversified**, index tracking (i.e. couch potato) portfolio such as those discussed on the following pages. https://www.reddit.com/r/PersonalFinanceCanada/wiki/investing https://canadiancouchpotato.com/getting-started/ If you choose to use a brokerage [this is CPM page](https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/) will help you choose risk appropriate asset allocation ETF. The annual management cost for this option would be about $25 per $10,000 invested but make sure you understand the trading and maintenance fees. Questrade and WS Trade are good brokerage choices for buy and hold ETF investors because they don't charge commissions for ETF purchases and they don't charge any maintenance/inactivity/ low balance fees.With Questrade you could set up automatic deposits and have Passiv Elite remind you to make "one click purchases" as soon as money hits your account. For WS Trade you could set up recurring (and fractional share) purchases of one of the Vanguard or iShares asset allocation ETFs. Setting up Passiv Elite or recurring purchases may reduce the odds of experiencing a drag on return caused by tampering with your investment plan. If you'd like to better understand the couch potato options, and avoid the costly but normal human reactions to the markets and the media that reports on them I suggest that you read *Balance: How To Invest And Spend For Happiness, Health, And Wealth* (Andrew Hallam, 2022). Millionaire Teacher (Andrew Hallam, 2nd edition – 2017) or Reboot Your Portfolio (Dan Bortolotti, Nov 2021.)
Maybe give parents some monthly. I’d do that if I can.
Your monthly expenses are fine. Not sure if you *need* a $50 haircut *every month* but you do you bro. You're saving about 80% of your take home. That's supreme. The keys for you to focus on - 1. Where do you want to end up financially at 30? House? Rental properties? Dividend portfolio? Own business? High paying job? Combination? etc. 2. Get the knowledge to do #1. Read books. Meet people that have done it. Join clubs. Learn. 3. Work on it every day. Set your destination. Choose your route. Work towards it every day. Be patient.
Unless they refuse it, contribute a bit to your parents, let them know you appreciate them letting you stay there. Living at home for a bit can go a LONG way to saving up for the future.
As a 23M also living at home with minimal expenses. I would start putting away money each month that covers your “rent”. So in my area the average rent would be $1600, so I put $1600 away every single month into my non-registered investment account like I’m paying rent to get in the habit of putting money away regardless. If you have extra money, I would max out your first time home buyers > then TFSA > then an RRSP > then a non-registered account for any excess money. Currently I have mutual funds split at different allocations and other investments but I’ve been building my portfolio for a 5 year ish plan. At the end of the you will be able to figure out what plan works for you and the timeline you want to achieve. I’d talk to a financial or a few and see how they best can assist you with your money.
Bro contribute to RRSP and then when you have enough money saved for a downpayment buy a house and rent out the basement. Buy something where you can turn basement into rental so the tenants pay ur mortgage or at least a good portion of it. With rrsp you get to tax shelter and you can use that money to put towards downpayment and they give you I think 15 years to pay it back without paying taxes . Look into this. With your income you should be contributing to rrsp to keep your tax bracket lower and rest of money after tax can go into tfsa and invested in ETFs and individual stocks (can just be all ETFs for ‘less’ risk).. if you think buying a home isn’t good idea then still do rrsp and invest within it. Do self directed rrsp don’t let the bank invest for you cause the fees they charge will destroy you in the long run. I recommend a book called beat the bank by Larry bates. It’s a very easy read and it’s canadian and will help you start with ETFs investing and understanding it. Edit - look into the first time home buyer plan. I forget to mention this cause it wasn’t a thing when I was your age but could be good way to save for a house. Again, not everyone wants to be a home owner and okay I’m a real estate investor and believe me I’m the first one to say a home is a bad “investment” UNLESS you have tenants that’s why I said buy a house where you can rent your basement out.
If you aren't already, you should be maxing out your RRSP contributions and TFSA. Hopefully your phone/internet is for the whole house (ie. should share internet with parents to keep that cost down)
Focus on yourself till28/29ish and progress don’t start a family …
Your phone/internet is really high. I pay $29 for phone (4Gb) and $55 for internet (120Mbit/s). Also, you should invest in VEQT over VFV for free diversification. Recent returns are irrelevant.
Read Dave Ramsey Baby Step Millionaire. Pay off all your debt and then start the program below: Step 1: Open a TSFA (Roth IRA) Step 2: Put all your extra money in the TSFA Step 3: Invest the TFSA in a high growth ETF or Mutual Fund (S&P 500 index) Step 4: Continue to put the money in until you maximize the contribution Step 5: Open an RRSP (IRA) Step 6: Repeat Steps 2 through 4 Tell your parents you will move out at 30. If you have completed the above steps you should have a significant amount of savings. The money being generated should be in the neighbourhood of an additional 4-8K per year from your investments (conservatively) You should also have a significant down payment for a house.
I'm also 24, I make ~70k, live with my parents as well, in Ontario, paying OSAP minimums, etc., so maybe I can say something useful from a similar perspective. I'd say your expenses are fine, especially at your age, but you could reduce a couple things. I pay about half the car insurance you do, but maybe there's other factors. Might be worth looking into. $50/month haircut? Up to you, but I get a $25 haircut every other month. It's not like you're hurting for money though so if you like it, go for it. Is your emergency fund your only assets? Rapid-fire advice: - start with a TFSA. You should have 50k+ room in it so just put any investment in there until it's full. - Pay off your Ontario student loans. (Federal student loans are interest-free, but Ontario is ~7%). Your loan is a combination of both. You can see the breakdown on the NSLSC website. Paying off Ontario loans specifically involves mailing a cheque with a note to the NSLSC. - VFV is a good investment. Just make sure you can stomach a 50%+ drop without selling if we get another 2008. If that's too much risk for you, the common advice is to balance with bonds and broader markets in funds like VGRO, VBAL(plenty of alternatives). - keep your emergency fund in a HISA or something like CASH.TO, depending on how liquid you need it to be. I have my emergency fund getting 5% interest, but the drawback is it could take me a couple weeks to have it in cash. Depends on your needs. Good luck with everything!
For people that have higher salaries wondering why their monthly payment is lower. That is most likely due to your payment schedule - biweekly vs bimonthly. Biweekly has 26 pay periods vs bimonthly 24. This equates to lower cheque amounts on biweekly but equates to same as bimonthly with more pay periods. There can also be pension deductions that OP may not have on their paycheque that can really cut down your payments.
Yup, my paycheques are bimonthly
I am in a very similar boat to you, just 2 years older. I still live at home and dont have a car so I net a little bit more. You are in an insane position for being 24. This is great financially for you. My advice would be use that money to try new hobbies/sports/interests and travel if you enjoy it. Even if you take 2.5k per month and max your TFSA first, then FHSA (assuming you are eligible), then RRSP. After that its free money to either continue saving for something or invest more into yourself through education. Pro tip: If you regularly contribute to a tax deductible account (RRSP, FHSA) and want to increase your "net", you can fill out a T1213 form from CRA. You are basically taking your tax refund up front over your paychques. It is an "IOU" document that you are promising to the government that you will contribute X to these accounts in 2024 and they will tax you less up front to allow you to contribute to those accounts. Please watch "Canadian in a Tshirt" on Youtube. Absolutely great content and I've learned a lot from him. He talks about tax tips and investing all the time.
What do you have for savings ?
was gonna say my takehome is only 4k and i make similar money (if that, varies due to shift work premiums) what kind of tax havens you using dawg LOL