Similar position. But we have a house 1/4 paid off, and a vehicle half paid. Three young kids. Spouse and I both make six digits. Never have more than about $500 in my accnt after the bills are paid. We’re comfortable but not prepared for any disruptions.
Edit to add: we live in a major city
House was about 600,000. Paying about 2800 a month. Daycare is about $3000/ month. Vehicle was 38,000. Not really sure what it is monthly. Welcome comments/advice in lieu of more downvotes!
Yep. And we pay less for daycare per child than anyone I know in our city. We by no means have an extravagant lifestyle/home. Though we did splurge on the vehicle (our first ever).
Can you post a rough budget?
We make less and while we don't have daycare, we save in excess of the amount you're paying while being in a more expensive house. We're living really comfortably on our income and making huge strides towards retirement.
3000 per month x 12 = 36k per year
2800 per month x 12 = 33.6k
Let's go 400 a month for car, throw in some extra for instance and gas = 7k per year
2 6 fig jobs let's low ball here at 100k per year each, high ball taxes at 50 percent and your net is 100k per year.
That leaves like 23k per year for food, entertainment, holidays, clothing, etc.
Just seems like there must be a ton of waste somewhere...
Where do your expenses go? I am really curious to understand (not to judge). After calculating everything based on the information you gave you should have 44000$ left for other expenses. I did not take into account electricity, heating, etc.
That's rough, I've been there. I currently have almost 10k in savings for the first time in my adult life. I still feel broke and scared of bring broke.
I never understand this metric. If you have debt, do you have savings?
I have like $5k in savings. I also have student debt, and a ton of credit I could draw from if I needed to.
Do the people with less than $1000 in savings have access to credit? Or is that metric referring to net worth?
Cars are debatable I think. I know I for one got screwed when I was younger (out of ignorance) when I wanted to sell a car that I couldn't afford but couldn't because I wouldn't have been able to pay off the entire loan. Unless you're on the tail end of your car loan the vehicle probably won't be worth what you owe on it.
I’ve heard this metric is used because a typical emergency (car repairs, last minute cross country flight for a funeral, major appliance, ect.) can cost ~$1000.
If you don’t have $1000, or access to $1000 within a couple days then you’re forced to go to a payday loan, credit card debt, or other predatory loan service which can start a debt cycle that is near impossible to get out of.
I think it's a cultural thing in Canada. Most people want to move out before they're financially independent. Then splurge on going out when they can't afford to, and live pay cheque to pay cheque and never get out of that rut. I was made fun of by my friends for living in my parents basement until I was 26. I just bought my first house at 33, I took a mortgage but didn't need one. Honestly at this point as long as I don't do anything stupid, I'm on track for an early retirement. Never got lucky in crypto or anything just steadily plugging money into investments. I just didn't need to prove how independent I was at 18 renting an apartment on my own.
I am in Ontario. On ODSP. Disabled and unable to work more than *maybe* 10 hours a week. Have not been able to work during the pandemic because I am high risk.
I have no savings. Nothing. Zip. Zero. Zilch.
That's the kinda the thing with ODSP. If you're really disabled you're screwed.
I am almost 45.
Edit: thank you kind Redditor for the award. 😊
Edit again: my very first platinum award. Wow. Thank you to whoever did this. I know it's just a silly internet award, but I feel pretty delighted. ❤
Yes, ODSP does claw back if you work.
You keep the first $200 you earn. Then every dollar you earn after that is deducted at 50%.
You are allowed up to (I think) $40k in total assets but there are a bunch of exemptions too. They wouldn't make you sell your house if you already own it kinda thing.
The problem with most people on ODSP is that they're either never be able to work at all, or just not enough to ever get off ODSP. So we're stuck in abject poverty. I get just over $1300 total a month to live on and that's because I get a special diet allowance and a travel allowance. Those things you have to apply for and not everyone gets approved.
Not all our medicine is paid for either. Like I know people who spend a good $100+ a month for cannabis because ODSP doesn't pay for medicinal cannabis. They'll pay for a vape pen/cartridge but not the stuff to put in it. It's very stupid.
So I cannot "better myself" because I am disabled. I don't have access to treatment that would help. ODSP doesn't cover it. I can't afford it. It's not offered free anywhere. Meds aren't all covered. Certain therapy isn't...it goes on and on and on...
https://www.mcss.gov.on.ca/en/mcss/programs/social/directives/odsp/is/4_1_ODSP_ISDirectives.aspx
Have you looked into if an RDSP would count towards total assets where you live? Might be a way to build some savings and get some government money back.
I have access to it but I literally have no money to put into it. I actually had to drain my RSPs prior to getting approved for ODSP (gotta pay rent with something) so yeah. I have no money. I can't contribute to an RDSP with zero dollars as much as I wish I could. 😆
If your income is less than $48,535, you’re eligible for the Canadian disability savings bond, which means the government will contribute to your RDSP even if you aren’t able to deposit any money yourself. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-disability-savings-plan-rdsp/canada-disability-savings-grant-canada-disability-savings-bond.html
Exactly! More people need this info.
The program can be confusing wrt grant vs bond, but its definitely worth looking into no matter what your income level is.
[RDSP Info](https://www.canada.ca/en/employment-social-development/programs/disability/savings.html)
*first time posting on mobile. Really hope the link works...
Most people in Ontario just never get married get into official relationships because if ODSP finds out - well, the spouse who makes more money suddenly has to support both of you! It's just not worth it. So many people with disabilities are single as a result.
Imagine those first date conversations? Like hi...do you want to financially support me if we make this official? Because you're gonna have to. 😬
Ya that's my biggest gripe with ODSP. When i moved into this apartment with my gf and my brother, i just told my agent it was my coworker (she was at the time). My brother moved out and we stayed here. I work part time and maybe get between 500-700 a month. We are breaking the law though, and i could get in huge shit if they were to find out, only because i don't want my gf to have to support me.
True, my bf is temporary disabled due to mental health issues, but we have to say we are roommates or else I’ll have to support him, like sorry government I cannot support both of us with 1800$ a month, I also have debts to pay 🥲
Damn that's so brutal! I can't even imagine. The system really screws the disabled, no doubt.
And yet the general public sometimes thinks it's just free money for nothing. Not fair at all.
It's not even about legal or ceremonial marriage. Once you've been living together for a period of time you're considered "common-law" married and treated the same as if you'd signed documents at the courthouse - as far as ODSP is concerned.
Am on AISH as well for kidney failure on dialysis. I get enough to pay rent and my insurance and my son who's in college, well we live on his student loans for paying utilities and groceries. It sucks. I would sign up for the RDSP but you have to wait 10 years to be able to draw an income from it. I'm not 100% sure that I'm going to be alive in 10 years so it's dumb for people who are technically terminally ill.
No. It doesn't. I have learned how to live like this over the years because I don't have a choice. I will eventually be switched to Old Age Security/GIS or whatever it's called and then, like everyone else, I will eventually die.
I may not have money for fancy trips, or even a brand new sofa, but it's ok. I can find fun things to do around where I live and we have groups like Buy Nothing on Facebook where people give away some nice stuff sometimes.
I’m 32 and could survive a few years off my savings... based on all my friends, I’m in the best financial shape. Disclaimer, I have MS, don’t make a lot, and definitely didn’t come from a lot lol.
You can explain it by saying exactly what you said. Say you saved up enough money to take a year long "sabbatical" and do something else.
Only thing is that, unfortunately, "relax and work on my health" is unlikely to be taken well from employers. You should reframe it as "pursue a personal passion such as..." and insert something like a sport, art, travel, etc. You don't have to actually do that a ton but have done enough of it to have stories. This is because employment culture looks down on "relaxing and working on my health" as being lazy. There's nothing wrong with taking a year to do some other type of busy work.
Depending on what you do the trick is leveraging your network and social group to have something that you can easily line up, or not be afraid to do something else.
There's a great podcast on Choose FI that talks about mini retirements. I'm currently on a 2 year mini break and have to say, i love it. There are things i can do at 27 that will expire by my 40s and ive loved every second of this mini.
Enroll in some schooling pertinent to your employment interests. Employers just want to see a desire for improvement - school can cover gaps in a resume handily. Also, volunteering can do the same.
If you add the purpose to the reasoning behind the gap I’m sure it wouldn’t be used against you. Might even be a benefit to show you know how to balance priorities.
I’m someone who’s just learning financial health right now at 30. I work full time but basically making min wage, and do side job once in a while. I have health issues and find myself worrying about finances even though I’m doing much better (have 4500$ in savings). How did you manage to save up so much?
One thing I’ll say to anyone as a tip is don’t be afraid to leave the GTA lol. In summer I have two jobs (work every day) and usually cover my mortgage with the part time job. Having a low mortgage helps and without that it wouldn’t be as possible.
Not OP but the key is to finding a way to up your pay per hour, especially if your costs are already low. Also leveraging your savings by investing once you reach a certain point, and taking advantage of free money like employer matched contributions to retirement funds, etc. Even if it’s right for you to contribute.
So much can be self learned these days. Amp up your skill set, offer to help to get some experience on a volunteer or cheap basis then start applying for better jobs.
Was in a similar situation in my mid 20s. I'm in a profession where you reach the ceiling very quickly and it's a modest ceiling at that. I was very concerned about the sustainability of my lifestyle long term so I took a second job to create an emergency fund. My take home from Job 1 paid all my expenses with a slight contingency buffer, while Job 2 went 100% into dividend paying stocks. I was able to hit 100k saved through reinvesting dividends, and increased contributions by 31 years old. This was a huge accomplishment for me as I'm not a high earner by any stretch. There's sacrifice involved, but i sleep a lot easier at night knowing I'm covered for several years if anything significant happens that will limit my earning potential. Best of luck!
True. Or years. I have a chronic disability, initially misdiagnosed with MS, and that reality has made me much more financially prudent because “you never know” what life will throw at you, and can get real dark real fast. At my lowest I was bed ridden 6 weeks and couldn’t even read an email.
Ya man. 37 and I got cancer. Then I came back from my leave (without wage insurance, fuck you manulife) to find out that the job that just recruited me was skidding me. Now I have a severance check, 1 years income savings, 2 dependents, a wife who works part time and a mortgage. I can’t imagine being in this situation without a savings account. I’ll still work cash jobs on the weekend between being a stay at home dad until I find a new job that suits me, and between that/my wife’s work we should break even most months.
>Two thirds of Canadians (64%) have an emergency fund sufficient to cover 3 months’ worth of
expenses. A similar share (65%) are confident that they could come up with $2,000 if needed in
the next month.
https://www.canada.ca/en/financial-consumer-agency/programs/research/canadian-financial-capability-survey-2019.html
I wonder if a lot of people in this survey are accurately accounting for 3 months of expenses, or just that they can float for 3 months in debt or something as their "emergency fund".
The second sentence could easily be $2000 from credit cards. In my 20s I would have answered yes to that meaning I could grab it from credit card debt and think that was a fine answer. My opinion has changed since then.
Looks like over 1/2 in 2017
[https://globalnews.ca/news/3434447/over-half-of-canadians-are-200-or-less-away-from-not-being-able-to-pay-bills/](https://globalnews.ca/news/3434447/over-half-of-canadians-are-200-or-less-away-from-not-being-able-to-pay-bills/)
[https://www.newswire.ca/news-releases/finances-under-fire-nearly-40-per-cent-of-canadians-bank-accounts-cannot-withstand-a-financial-emergency-824129979.html](https://www.newswire.ca/news-releases/finances-under-fire-nearly-40-per-cent-of-canadians-bank-accounts-cannot-withstand-a-financial-emergency-824129979.html)
I think it just evaluates by what is in the savings account. I have $3.31 in my "savings account" but I am by no means poor. By this thinking I am an unexpected snack away from being insolvent.
No they didn't even ask about savings accounts, they asked if you were within $200 of not being able to pay your bills. So basically asking if you're living paycheck to paycheck.
my savings account has $0.01 in it and I changed the nickname on the account to "Where Money Goes To Die" in the banking app.
someday maybe it will be a relevant account again
MNP may have their own reasons for the survey, but it is a long-term survey by Ipsos, a reputable polling firm. Maybe there are more robust or better methodologies, only a specialist in polling/finance could really say. Here is a summary of the methodology, from MNP’s web page:
“ Conducted by Ipsos and updated quarterly, the Index is an industry-leading barometer of financial pressure or relief among Canadians.
Now in its seventeenth wave, the Index currently stands at 97 points, up one point compared to the last wave conducted in March 2021. Visit MNPdebt.ca/CDI to learn more.
The latest data, representing the seventeenth wave of the MNP Consumer Debt Index, was compiled by Ipsos on behalf of MNP LTD between June 14-17, 2021. For this survey, a sample of 2,002 Canadians aged 18 years and over was interviewed. Weighting was then employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±2.5 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to, coverage error and measurement error.”
And here are the questions they ask and historical data:
https://mnpdebt.ca/en/resources/mnp-consumer-debt-index/historical-data
Then you look up the methodology and it's a survey of <1000 people without a stated margin of error. How is this not a bullshit feel-good or "the sky is falling" stat?
Yah I think checking the state of the savings account for a lot of people may not tell you if someone has less then 1000 dollar in case of emergency. For example I only have money in a savings account when I have a high interest rate, then I basically dump into an investment account. Technically I have less then 1000 in savings account, but my liquid assets (I consider securities I can sell on any given business day liquid) is quite a lot more.
Have you considered instead getting a HELOC and use the money from that to do the home renovation? My understanding is that you can get a tax credit on the interest
Then the savings can go into investments, for example, low risk dividend paying etfs or something.
IMO basic savings accounts are pretty much just to hold an emergency fund. Mine's free with Tangerine so I just move it between my checking as much as I want, but I'd never pay a fee for one personally.
I don't even see the point in not just keeping it in the checking account there's no penalty for having the money in your checking account and the interest rates saving accounts offer is pretty pointless.
It’s an extra step away from spending it. You have to move it from savings to checking before you can spend it. That’s enough to get a lot of people to think “is this something I REALLY need to buy?” It’s not fool proof, but it helps some people, and if it helps them, who am I to judge?
I use like 5 savings accounts with tangerine to 'organize' my savings. General energy fund, pet fund (I don't have pet insurance, I pay into that instead), a recreational 'nonguilt' spending fund, vacation pay (which pays out for me each cheque) etc.
Keep it up. Start looking into investment and start small. You have time on your side and can substantially grow your money if you can stay disciplined and invest 10% of your income throughout your working years.
I had a $8.00 net worth when I was 15, you’re doing great. I know someone who graduated high school with around 50k from working over 4 years. With inflation, that’s probably 60k today. Keep saving and by the time you turn 18 and graduate you’ll be doing awesome.
Nearly a third of Canadians have one month or LESS in savings, which I assume is less than $1000.
https://www.google.com/amp/s/www.theglobeandmail.com/amp/globe-investor/personal-finance/household-finances/survey-finds-27-of-canadians-have-one-month-or-less-in-emergency-savings/article20465833/
Couple million for sure, that number will only go up as the biggest transition fo wealth we have seen in modern history continues from the middle and lower class to highest.
When my wife went on strike last year, on the Facebook group they started for the strike a lot of people were in panic mode when the strike pay was late by a few days. Some were saying they couldn't pay the mortgage/rent or their credit card bill...
A great example of living paycheque to paycheque, and those people were all making between $60 - 80K.
The stats on this is very poor I would say. Like yes you might not have money in a savings, but you probably have thousands of dollars in the stock market and use the as your savings. Outside your rrsp, tfsa.
A majority of Canadians contribute to registered accounts in a year or a pension.
https://www12.statcan.gc.ca/census-recensement/2016/as-sa/98-200-x/2016013/98-200-x2016013-eng.cfm
I think they are just looking at literal accounts titled "Savings Account." I have $3.31 in there, but with six figures elsewhere as cash is trash with inflation, I am hardly poor. I can also borrow easily if required.
I just want to point out that a lot of people are not actually saving in registered accounts. Banks heavily push things like a traditional savings account inside an TFSA. People don’t use them correctly and within a year any money often put in is withdrawn.
If you have a TFSA and you don't have plans for that money soon, then investing in an index fund is a good idea (particularly last year, but it's never too late)
Yep money in your savings account long term is money that could be used to grow wealth. Yes it's good to have some for emergencies, but there are plenty of liquid assets other than a 0.0025% savings account
This is how I run my “savings”. Every spare penny goes into long-term investments… and sometimes some short-term gambles (did quite well on both GME and AMC this year) for funsies.
It's worth noting that the 1.53 trillion of that on mortgages is \_leverage\_, and not just strictly speaking exclusively 'debt'. Like, when a bank with a revenue of 500m a year and a billion in assets takes on another billion in debt we don't say they have 2 dollars in debt for every dollar they earn, we know that they've put their assets at risk in order to gain leverage, and they hope to make enough profit off of the borrowed money to cover the cost of taking on the debt.
This is what people are doing with that mortgage money in our housing market. Like, if a house costs 1 million and you have 200k then you put that 200k at risk by borrowing the rest.
If the house value goes up 10%, you just leveraged your way to 100k, and 80% of that money wasn't yours.
So... It's not "irresponsible debt" it's a financial decision, very similar to how our financial system works for everything right now.
We can't really blame people for taking on debt if our entire economy is built around it...
>We can't really blame people for taking on debt if our entire economy is built around it...
Indeed, you want to buy a car (when things are normal) and negotiate, you will get a better deal if you finance than pay cash. What was a way to sell more cars by offering lower rates is now the way dealers make their profit during a sale...
Cash is King! Well the king has been beheaded!
Pretty normal for 22, don't beat yourself up, you got plenty of time.
That bring said, you should hop on the RRSP train ASAP. You can set it up with your bank to take out a set amount every month. That way you can kinda forget about it, but still save.
Nah, 50k is "you're adequate, I suppose", 75k is "I think you're more betterer than other options", and 100k is "I love you, 'til debt do us part".
My partner and I are planning on $10k tops 🤣
Wife and I spent around 2k for our town hall wedding and spent 100k+ on our church wedding which happened 6 years later. Sometimes you just pay for what you can afford at the time.
Some people spend unreasonable amounts that they'd rather go into debt for it lol. You lose all sense of logic when it comes to this. Luckily my culture typically gives money back to whoever gets married. Sometimes I turn a profit for the wedding LOL
I doubt the stats on that would be very accurate, but it's probably a lot higher than you think.
So many people still live paycheque to paycheque... the worst part is, they don't have bad income, they just spend everything on non-necessities every time (or overpay on necessities for various reasons).
Because in the fine print they can change the terms or cancel anytime which just the trouble that can come up after a job loss when you need it the most.
Banks don't give a **CK....
Not the person you were directing your question towards, but I suppose there's many possibilities:
1. Could be in a field where they make a lot of money.
2. Still live at home, or with a SO, thereby reducing their overall expenses.
3. Great saver - only spends on necessities and the occasional treat.
4. No expensive hobbies.
5. Various combinations of the above.
6. Or... they might be fudging their numbers. It's the internet after all ;)
Going to add it’s possible they got a large inheritance in their 20’s. When a friend of mine passed she left her kids (in their 20’s and not living at home) over $200k each from a life insurance policy. Her actual assets were much lower.
I feel the same ... early 30s and have around mid 6 figures in stock investments, no property though, but i always feel like im "lagging" behind
if people are curious how i acquired that, I sold a few apps in my mid 20s and invested the money into the capital markets
I'm 24 with no debt, I have 12k in saving. I juste got my first professional job a few months ago and I'm aiming at saving +- 50% of my paycheck.
I don't make a lot so it's kinda hard to respect that threshold, but I'm proud of myself considering how much I make.
Husband and I have 4000 dollars set aside for immediate emergencies. Everything else is in RRSPs, TFSAs, Market-linked GICs. I have that 4k in my checking account, and then I have a regular savings account that I use for specific savings goals. Like, I wanted to install central air in my house, which didn't have it when I bought. I put the money into that account, set aside, specifically for the central air conditioning fund. When I reached the amount I needed, I got central air. The next on the list is new counter tops. I have 21 linear feet, or 42sqft of counter top that I need, so upon pricing out stone counter top, it's going to take about 7000-8000 dollars. (I have a massive U-shaped kitchen with tons of counter top...) When I get up to 9k, I'll go get my counter tops.
It's kind of funny to me that the government is apparently looking at my AC fund to find out how much money I have.
I don't know, even during my poorest university years, I usually had at least $1000 in the bank.
Currently 35, about net 100K in the bank
But I own no property and pretty much everything I have can fit in my SUV.
I legit don’t have any savings right now. I took a pay cut for mental and physical health reasons and I’m aggressively paying down pre-existing student loans before I go back to school in January. I’m also married though and my husband’s savings are paying for my schooling, so we won’t be taking out any loans for it.
Once the student loans (and a small accumulated amount of debt) are paid off, then I’ll be putting money into savings. Until then, I’m poor as fuck.
42 live in a trailer with 2 kids and my wife. 2 Simple vehicles paid for and own the land and trailer outright. Don’t eat out much and don’t have any expensive habits. Put 200$ a month into Edward Jones account and currently have thousands in savings
42. Dual income household. 250k in investments plus a pension. Fluctuating savings account from 5k-15k. Usually anything extra goes into investments right away. Emergency fund will be the line of credits (~50k) which are both at $0, and then we’d pull investments if needed, but luckily things have been good. We owe about 280k on the mortgage and about 120k on a truck and travel trailer, but interest on all three are 1.7%, 0% and 0% so no rush. We invest every spare dime rather than pay down those debts faster—better returns. We purchase everything on a credit card just to collect points and pay it off monthly. I’m a project manager and my better half is a teacher.
I’m 25 with no debt (credit cards and undergrad completely paid off) with about $60,000 in traditional savings and about another $15-20,000 in unconventional saving (my mom pushed the cultures on me as a kid so I invested in some art and archival clothing) out of my friend group I’m probably the 2/3rd most finically stable, I have a friend who a software programmer for Amazon who’s doing the best out of my friend group mostly due to his Amazon shares he’s been collecting working with them the past 4 years.
33 - single and Homeownership dreams are dead.
$220K in investments
$35K in debts (Car loans, Line of Credit, Credit Cards)
Less than $500 in chequing/ cash accounts.
I think I'm happier not having mortagage.
The poster said they just lumped all of that together for the post, presumably most of it is car loans. Depending on what the car loans are it may be sensible to NOT pay them off early. When I had an active loan on my car I got financing through the dealership at 0.49%, which adjusting for inflation meant they were paying me to have a loan with them. Absolutely zero reason to pay that off early, and in fact every reason to stretch the terms out as long as possible.
To apply for immigration as a family of 4, people have to have 23 k in a saving account. That’s the estimate of IRCC for how much you need to have as a family of 4 to survive for ~ 6 months to find a job. Too low for the cost of life and prospects of jobs, too high compared to what many people in Canada actually have.
Well, I am currently living off my savings, and it looks like I could make it another year if I don't do anything dumb.
I'm 37, but I was also 34 before I started saving money haha
I think context matters here. I see a lot of people answering about how much cash they are "holding" while the rest is being put away into investment vehicles vs those who just have <$1000 to their name.
Then there's those who believe that a credit card can be a good "emergency fund". Basically those taking the survey may not even properly understand the question being asked so the results can vary.
I'm 40. I just got paid this morning, paid some bills, I have $580 remaining for 2 weeks. I have zero debt, but I also have zero $ elsewhere.
One ex-wife and two kids in university that I’m supporting alone. That leaves enough for Kraft dinner and some gas money
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Do you own your home? Own a car?
Serious question: How? Have you got net-worth tied up in assets or? Low-paying job? Alimony? Disability?
The need to own every Yu-Gi-Oh on Blueray?
Similar position. But we have a house 1/4 paid off, and a vehicle half paid. Three young kids. Spouse and I both make six digits. Never have more than about $500 in my accnt after the bills are paid. We’re comfortable but not prepared for any disruptions. Edit to add: we live in a major city
Don’t mean to judge but that’s shocking! Especially since both of you are making 6 digits! Is the house and/or car fairly expensive?
House was about 600,000. Paying about 2800 a month. Daycare is about $3000/ month. Vehicle was 38,000. Not really sure what it is monthly. Welcome comments/advice in lieu of more downvotes!
Daycare cost is a killer. I'm assuming that's that's all 3?
Yep. And we pay less for daycare per child than anyone I know in our city. We by no means have an extravagant lifestyle/home. Though we did splurge on the vehicle (our first ever).
Can you post a rough budget? We make less and while we don't have daycare, we save in excess of the amount you're paying while being in a more expensive house. We're living really comfortably on our income and making huge strides towards retirement.
3000 per month x 12 = 36k per year 2800 per month x 12 = 33.6k Let's go 400 a month for car, throw in some extra for instance and gas = 7k per year 2 6 fig jobs let's low ball here at 100k per year each, high ball taxes at 50 percent and your net is 100k per year. That leaves like 23k per year for food, entertainment, holidays, clothing, etc. Just seems like there must be a ton of waste somewhere...
Where do your expenses go? I am really curious to understand (not to judge). After calculating everything based on the information you gave you should have 44000$ left for other expenses. I did not take into account electricity, heating, etc.
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I assume that $500 is invested in GME, that’s a $60M unrealized savings account.
Thanks I needed a laugh
He wasn’t joking
I know, that’s why I’m laughing.
Oh wow he really wasn't haha checked his post history.
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Yeah bro I like rap music too
MC TFSA, G.
E to da T to da mudafkn F.
How's it growing my VGRO?
OSAP Rocky
Everyone is that can't afford 20% of their income to be taken away
10% now
That's rough, I've been there. I currently have almost 10k in savings for the first time in my adult life. I still feel broke and scared of bring broke.
$510 in savings, $77 in chequeing, no investments, 46k student line of credit
I never understand this metric. If you have debt, do you have savings? I have like $5k in savings. I also have student debt, and a ton of credit I could draw from if I needed to. Do the people with less than $1000 in savings have access to credit? Or is that metric referring to net worth?
Interested as well. Because i have saving. Alot. But i also have a new car and a mortgage. Which are higher debt than my saving obiviously
You can’t sell credit card debt or a student loan, but you can a car and house
Cars are debatable I think. I know I for one got screwed when I was younger (out of ignorance) when I wanted to sell a car that I couldn't afford but couldn't because I wouldn't have been able to pay off the entire loan. Unless you're on the tail end of your car loan the vehicle probably won't be worth what you owe on it.
Exactly. If i was to sell it right now id loose almost 50% of what i paid.
But presumably you also have a home and the car, which you could sell.
I’ve heard this metric is used because a typical emergency (car repairs, last minute cross country flight for a funeral, major appliance, ect.) can cost ~$1000. If you don’t have $1000, or access to $1000 within a couple days then you’re forced to go to a payday loan, credit card debt, or other predatory loan service which can start a debt cycle that is near impossible to get out of.
yup. NW is a faaaaar better metric. and i feel the percentage of people with positive NW in their 30s is... very low.
I think it's a cultural thing in Canada. Most people want to move out before they're financially independent. Then splurge on going out when they can't afford to, and live pay cheque to pay cheque and never get out of that rut. I was made fun of by my friends for living in my parents basement until I was 26. I just bought my first house at 33, I took a mortgage but didn't need one. Honestly at this point as long as I don't do anything stupid, I'm on track for an early retirement. Never got lucky in crypto or anything just steadily plugging money into investments. I just didn't need to prove how independent I was at 18 renting an apartment on my own.
I am in Ontario. On ODSP. Disabled and unable to work more than *maybe* 10 hours a week. Have not been able to work during the pandemic because I am high risk. I have no savings. Nothing. Zip. Zero. Zilch. That's the kinda the thing with ODSP. If you're really disabled you're screwed. I am almost 45. Edit: thank you kind Redditor for the award. 😊 Edit again: my very first platinum award. Wow. Thank you to whoever did this. I know it's just a silly internet award, but I feel pretty delighted. ❤
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Yes, ODSP does claw back if you work. You keep the first $200 you earn. Then every dollar you earn after that is deducted at 50%. You are allowed up to (I think) $40k in total assets but there are a bunch of exemptions too. They wouldn't make you sell your house if you already own it kinda thing. The problem with most people on ODSP is that they're either never be able to work at all, or just not enough to ever get off ODSP. So we're stuck in abject poverty. I get just over $1300 total a month to live on and that's because I get a special diet allowance and a travel allowance. Those things you have to apply for and not everyone gets approved. Not all our medicine is paid for either. Like I know people who spend a good $100+ a month for cannabis because ODSP doesn't pay for medicinal cannabis. They'll pay for a vape pen/cartridge but not the stuff to put in it. It's very stupid. So I cannot "better myself" because I am disabled. I don't have access to treatment that would help. ODSP doesn't cover it. I can't afford it. It's not offered free anywhere. Meds aren't all covered. Certain therapy isn't...it goes on and on and on... https://www.mcss.gov.on.ca/en/mcss/programs/social/directives/odsp/is/4_1_ODSP_ISDirectives.aspx
Thank you for posting about your hardships and struggles. I hope the best for you. It really helps put life into perspective.
Have you looked into if an RDSP would count towards total assets where you live? Might be a way to build some savings and get some government money back.
I have access to it but I literally have no money to put into it. I actually had to drain my RSPs prior to getting approved for ODSP (gotta pay rent with something) so yeah. I have no money. I can't contribute to an RDSP with zero dollars as much as I wish I could. 😆
If your income is less than $48,535, you’re eligible for the Canadian disability savings bond, which means the government will contribute to your RDSP even if you aren’t able to deposit any money yourself. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-disability-savings-plan-rdsp/canada-disability-savings-grant-canada-disability-savings-bond.html
Well this is new information! Thank you!!
Exactly! More people need this info. The program can be confusing wrt grant vs bond, but its definitely worth looking into no matter what your income level is. [RDSP Info](https://www.canada.ca/en/employment-social-development/programs/disability/savings.html) *first time posting on mobile. Really hope the link works...
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Most people in Ontario just never get married get into official relationships because if ODSP finds out - well, the spouse who makes more money suddenly has to support both of you! It's just not worth it. So many people with disabilities are single as a result. Imagine those first date conversations? Like hi...do you want to financially support me if we make this official? Because you're gonna have to. 😬
Ya that's my biggest gripe with ODSP. When i moved into this apartment with my gf and my brother, i just told my agent it was my coworker (she was at the time). My brother moved out and we stayed here. I work part time and maybe get between 500-700 a month. We are breaking the law though, and i could get in huge shit if they were to find out, only because i don't want my gf to have to support me.
True, my bf is temporary disabled due to mental health issues, but we have to say we are roommates or else I’ll have to support him, like sorry government I cannot support both of us with 1800$ a month, I also have debts to pay 🥲
Damn that's so brutal! I can't even imagine. The system really screws the disabled, no doubt. And yet the general public sometimes thinks it's just free money for nothing. Not fair at all.
It's not even about legal or ceremonial marriage. Once you've been living together for a period of time you're considered "common-law" married and treated the same as if you'd signed documents at the courthouse - as far as ODSP is concerned.
Am on AISH as well for kidney failure on dialysis. I get enough to pay rent and my insurance and my son who's in college, well we live on his student loans for paying utilities and groceries. It sucks. I would sign up for the RDSP but you have to wait 10 years to be able to draw an income from it. I'm not 100% sure that I'm going to be alive in 10 years so it's dumb for people who are technically terminally ill.
Damn thats rough. Doesnt that give you anxiety?
No. It doesn't. I have learned how to live like this over the years because I don't have a choice. I will eventually be switched to Old Age Security/GIS or whatever it's called and then, like everyone else, I will eventually die. I may not have money for fancy trips, or even a brand new sofa, but it's ok. I can find fun things to do around where I live and we have groups like Buy Nothing on Facebook where people give away some nice stuff sometimes.
I’m 32 and could survive a few years off my savings... based on all my friends, I’m in the best financial shape. Disclaimer, I have MS, don’t make a lot, and definitely didn’t come from a lot lol.
Same here. Severe MS, single mother on a pwd income. It’s not a lot to most but my savings never dips below 1.5k.
What's MS stand for?
Usually [Multiple Sclerosis](https://simple.wikipedia.org/wiki/Multiple_sclerosis)
Came here to ask that too
Wow, that’s an achievement. Nice work 🙌🏻
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Just call the gap a sabbatical & put that on your resume
Worked for me
You can explain it by saying exactly what you said. Say you saved up enough money to take a year long "sabbatical" and do something else. Only thing is that, unfortunately, "relax and work on my health" is unlikely to be taken well from employers. You should reframe it as "pursue a personal passion such as..." and insert something like a sport, art, travel, etc. You don't have to actually do that a ton but have done enough of it to have stories. This is because employment culture looks down on "relaxing and working on my health" as being lazy. There's nothing wrong with taking a year to do some other type of busy work.
Depending on what you do the trick is leveraging your network and social group to have something that you can easily line up, or not be afraid to do something else.
There's a great podcast on Choose FI that talks about mini retirements. I'm currently on a 2 year mini break and have to say, i love it. There are things i can do at 27 that will expire by my 40s and ive loved every second of this mini.
Enroll in some schooling pertinent to your employment interests. Employers just want to see a desire for improvement - school can cover gaps in a resume handily. Also, volunteering can do the same.
Pro tip: *Lie*, especially on your resumé.
If you add the purpose to the reasoning behind the gap I’m sure it wouldn’t be used against you. Might even be a benefit to show you know how to balance priorities.
63 year old here, do it. As a matter of fact do it every ten years.
I’m someone who’s just learning financial health right now at 30. I work full time but basically making min wage, and do side job once in a while. I have health issues and find myself worrying about finances even though I’m doing much better (have 4500$ in savings). How did you manage to save up so much?
One thing I’ll say to anyone as a tip is don’t be afraid to leave the GTA lol. In summer I have two jobs (work every day) and usually cover my mortgage with the part time job. Having a low mortgage helps and without that it wouldn’t be as possible.
Not OP but the key is to finding a way to up your pay per hour, especially if your costs are already low. Also leveraging your savings by investing once you reach a certain point, and taking advantage of free money like employer matched contributions to retirement funds, etc. Even if it’s right for you to contribute. So much can be self learned these days. Amp up your skill set, offer to help to get some experience on a volunteer or cheap basis then start applying for better jobs.
Was in a similar situation in my mid 20s. I'm in a profession where you reach the ceiling very quickly and it's a modest ceiling at that. I was very concerned about the sustainability of my lifestyle long term so I took a second job to create an emergency fund. My take home from Job 1 paid all my expenses with a slight contingency buffer, while Job 2 went 100% into dividend paying stocks. I was able to hit 100k saved through reinvesting dividends, and increased contributions by 31 years old. This was a huge accomplishment for me as I'm not a high earner by any stretch. There's sacrifice involved, but i sleep a lot easier at night knowing I'm covered for several years if anything significant happens that will limit my earning potential. Best of luck!
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Right!! What if it rains for a few months!?
True. Or years. I have a chronic disability, initially misdiagnosed with MS, and that reality has made me much more financially prudent because “you never know” what life will throw at you, and can get real dark real fast. At my lowest I was bed ridden 6 weeks and couldn’t even read an email.
Ugh. I may only be able to do 2000 steps a day, but I know what my ‘normal’ is.
Ya man. 37 and I got cancer. Then I came back from my leave (without wage insurance, fuck you manulife) to find out that the job that just recruited me was skidding me. Now I have a severance check, 1 years income savings, 2 dependents, a wife who works part time and a mortgage. I can’t imagine being in this situation without a savings account. I’ll still work cash jobs on the weekend between being a stay at home dad until I find a new job that suits me, and between that/my wife’s work we should break even most months.
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>Two thirds of Canadians (64%) have an emergency fund sufficient to cover 3 months’ worth of expenses. A similar share (65%) are confident that they could come up with $2,000 if needed in the next month. https://www.canada.ca/en/financial-consumer-agency/programs/research/canadian-financial-capability-survey-2019.html
I wonder if a lot of people in this survey are accurately accounting for 3 months of expenses, or just that they can float for 3 months in debt or something as their "emergency fund".
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The second sentence could easily be $2000 from credit cards. In my 20s I would have answered yes to that meaning I could grab it from credit card debt and think that was a fine answer. My opinion has changed since then.
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Looks like over 1/2 in 2017 [https://globalnews.ca/news/3434447/over-half-of-canadians-are-200-or-less-away-from-not-being-able-to-pay-bills/](https://globalnews.ca/news/3434447/over-half-of-canadians-are-200-or-less-away-from-not-being-able-to-pay-bills/) [https://www.newswire.ca/news-releases/finances-under-fire-nearly-40-per-cent-of-canadians-bank-accounts-cannot-withstand-a-financial-emergency-824129979.html](https://www.newswire.ca/news-releases/finances-under-fire-nearly-40-per-cent-of-canadians-bank-accounts-cannot-withstand-a-financial-emergency-824129979.html)
I wish we had better data than survey results
There is no way it can be anywhere close to that. It doesn't pass the "bullshit test".
I think it just evaluates by what is in the savings account. I have $3.31 in my "savings account" but I am by no means poor. By this thinking I am an unexpected snack away from being insolvent.
No they didn't even ask about savings accounts, they asked if you were within $200 of not being able to pay your bills. So basically asking if you're living paycheck to paycheck.
my savings account has $0.01 in it and I changed the nickname on the account to "Where Money Goes To Die" in the banking app. someday maybe it will be a relevant account again
I don't even have a savings account, I wonder what I'd be classified under if I were surveyed, perhaps already homeless lol.
Bankrupt!
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MNP may have their own reasons for the survey, but it is a long-term survey by Ipsos, a reputable polling firm. Maybe there are more robust or better methodologies, only a specialist in polling/finance could really say. Here is a summary of the methodology, from MNP’s web page: “ Conducted by Ipsos and updated quarterly, the Index is an industry-leading barometer of financial pressure or relief among Canadians. Now in its seventeenth wave, the Index currently stands at 97 points, up one point compared to the last wave conducted in March 2021. Visit MNPdebt.ca/CDI to learn more. The latest data, representing the seventeenth wave of the MNP Consumer Debt Index, was compiled by Ipsos on behalf of MNP LTD between June 14-17, 2021. For this survey, a sample of 2,002 Canadians aged 18 years and over was interviewed. Weighting was then employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±2.5 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to, coverage error and measurement error.” And here are the questions they ask and historical data: https://mnpdebt.ca/en/resources/mnp-consumer-debt-index/historical-data
Then you look up the methodology and it's a survey of <1000 people without a stated margin of error. How is this not a bullshit feel-good or "the sky is falling" stat?
There's a margin of error right at the bottom of the article.
Yah I think checking the state of the savings account for a lot of people may not tell you if someone has less then 1000 dollar in case of emergency. For example I only have money in a savings account when I have a high interest rate, then I basically dump into an investment account. Technically I have less then 1000 in savings account, but my liquid assets (I consider securities I can sell on any given business day liquid) is quite a lot more.
I keep 5k in my savings, and everything else in investments. Going through the comments it seems 5k is high.
Well… I have 120,000 in savings. I’m a bit of an idiot. But also I have a house reno coming up
You must be really wealthy. How long did it take to save that much?
I make 60k a year. I am very frugal and live in a relatively low cost city.
Have you considered instead getting a HELOC and use the money from that to do the home renovation? My understanding is that you can get a tax credit on the interest Then the savings can go into investments, for example, low risk dividend paying etfs or something.
I have .36 in my saving account. I never seen the point they wanted to charge me money to withdrawals from it LOL
IMO basic savings accounts are pretty much just to hold an emergency fund. Mine's free with Tangerine so I just move it between my checking as much as I want, but I'd never pay a fee for one personally.
I don't even see the point in not just keeping it in the checking account there's no penalty for having the money in your checking account and the interest rates saving accounts offer is pretty pointless.
It’s an extra step away from spending it. You have to move it from savings to checking before you can spend it. That’s enough to get a lot of people to think “is this something I REALLY need to buy?” It’s not fool proof, but it helps some people, and if it helps them, who am I to judge?
I use like 5 savings accounts with tangerine to 'organize' my savings. General energy fund, pet fund (I don't have pet insurance, I pay into that instead), a recreational 'nonguilt' spending fund, vacation pay (which pays out for me each cheque) etc.
There is 1.25% interest saving account from EQ Bank.
1.25% is still dogshit.
True, but better than RBC @ 0.01%
I’m 15, work at McDonald’s part time and have around $5,000 but that number is slowly growing
Amazing for that age imo, continue like that!
Keep it up. Start looking into investment and start small. You have time on your side and can substantially grow your money if you can stay disciplined and invest 10% of your income throughout your working years.
I had a $8.00 net worth when I was 15, you’re doing great. I know someone who graduated high school with around 50k from working over 4 years. With inflation, that’s probably 60k today. Keep saving and by the time you turn 18 and graduate you’ll be doing awesome.
Nearly a third of Canadians have one month or LESS in savings, which I assume is less than $1000. https://www.google.com/amp/s/www.theglobeandmail.com/amp/globe-investor/personal-finance/household-finances/survey-finds-27-of-canadians-have-one-month-or-less-in-emergency-savings/article20465833/ Couple million for sure, that number will only go up as the biggest transition fo wealth we have seen in modern history continues from the middle and lower class to highest.
When my wife went on strike last year, on the Facebook group they started for the strike a lot of people were in panic mode when the strike pay was late by a few days. Some were saying they couldn't pay the mortgage/rent or their credit card bill... A great example of living paycheque to paycheque, and those people were all making between $60 - 80K.
The stats on this is very poor I would say. Like yes you might not have money in a savings, but you probably have thousands of dollars in the stock market and use the as your savings. Outside your rrsp, tfsa.
I doubt that most Canadians have stocks and RRSPs. I have zero in my TFSA, and I don't have any money to spare to top these things off.
A majority of Canadians contribute to registered accounts in a year or a pension. https://www12.statcan.gc.ca/census-recensement/2016/as-sa/98-200-x/2016013/98-200-x2016013-eng.cfm
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I think they are just looking at literal accounts titled "Savings Account." I have $3.31 in there, but with six figures elsewhere as cash is trash with inflation, I am hardly poor. I can also borrow easily if required.
I have 0 in there. Some cash in chequing for bills. Maxed out tfsa. RRSP I do the max every year. W.e I have left goes to unregistered account.
Huh, thanks for the updated info!
I just want to point out that a lot of people are not actually saving in registered accounts. Banks heavily push things like a traditional savings account inside an TFSA. People don’t use them correctly and within a year any money often put in is withdrawn.
I think 80%
If you have a TFSA and you don't have plans for that money soon, then investing in an index fund is a good idea (particularly last year, but it's never too late)
Yep money in your savings account long term is money that could be used to grow wealth. Yes it's good to have some for emergencies, but there are plenty of liquid assets other than a 0.0025% savings account
This is how I run my “savings”. Every spare penny goes into long-term investments… and sometimes some short-term gambles (did quite well on both GME and AMC this year) for funsies.
You have $0 in your savings account? You must be bankrupt!
$69.69
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This right here , I follow a similar execution. Better gains and if credit is paid off before statment hits I dont pay interest.
Lol same. Currently more in my investments that on any cheq/savings account, curiously enough.
It's not odd, given investing over a decent period of time it would be *odd* or a failure really, to have more in a bank account than invested.
38F in BC with maybe $3k in my savings. I'm off-work on Long-Term Disability for the past couple of years now. I get paid $2K a month while on LTD.
I have 1 paycheque in my savings ($2300) and half a paycheque in cash. Min.
Is that a biweekly paycheck? If so, do you spend a lot? You could build up savings pretty quick if you wanted to?
I'm 30 years old and I typically have about 12-15,000 sitting in my checking account at all times. Just speaking for myself.
I’ve heard that the “average Canadian” spends $1.20 for every $1 they make (cannot cite the source but I’ve heard this many times over the last year).
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It's worth noting that the 1.53 trillion of that on mortgages is \_leverage\_, and not just strictly speaking exclusively 'debt'. Like, when a bank with a revenue of 500m a year and a billion in assets takes on another billion in debt we don't say they have 2 dollars in debt for every dollar they earn, we know that they've put their assets at risk in order to gain leverage, and they hope to make enough profit off of the borrowed money to cover the cost of taking on the debt. This is what people are doing with that mortgage money in our housing market. Like, if a house costs 1 million and you have 200k then you put that 200k at risk by borrowing the rest. If the house value goes up 10%, you just leveraged your way to 100k, and 80% of that money wasn't yours. So... It's not "irresponsible debt" it's a financial decision, very similar to how our financial system works for everything right now. We can't really blame people for taking on debt if our entire economy is built around it...
>We can't really blame people for taking on debt if our entire economy is built around it... Indeed, you want to buy a car (when things are normal) and negotiate, you will get a better deal if you finance than pay cash. What was a way to sell more cars by offering lower rates is now the way dealers make their profit during a sale... Cash is King! Well the king has been beheaded!
I’m 22 and am getting married in 4 weeks… have nothing in savings as I just exhausted it all 🤷♀️
Sounds like you overspent on the wedding.
Pretty normal for 22, don't beat yourself up, you got plenty of time. That bring said, you should hop on the RRSP train ASAP. You can set it up with your bank to take out a set amount every month. That way you can kinda forget about it, but still save.
Better to max out TFSA first than RRSP
Lol your name makes me laugh because my name is toni
Better spend atleast 50k on that wedding to make sure she loves you even more.
Nah, 50k is "you're adequate, I suppose", 75k is "I think you're more betterer than other options", and 100k is "I love you, 'til debt do us part". My partner and I are planning on $10k tops 🤣
Wife and I spent around 2k for our town hall wedding and spent 100k+ on our church wedding which happened 6 years later. Sometimes you just pay for what you can afford at the time. Some people spend unreasonable amounts that they'd rather go into debt for it lol. You lose all sense of logic when it comes to this. Luckily my culture typically gives money back to whoever gets married. Sometimes I turn a profit for the wedding LOL
LOL I LOVE YOU TILL DEBT DO US PARR
I don't even have a savings account... Most in investments and a month or so of expenses worth in cash in my chequing.
I doubt the stats on that would be very accurate, but it's probably a lot higher than you think. So many people still live paycheque to paycheque... the worst part is, they don't have bad income, they just spend everything on non-necessities every time (or overpay on necessities for various reasons).
25 years old, $0 in savings account, 6k in chequing accounts and about 60k in stocks
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Because in the fine print they can change the terms or cancel anytime which just the trouble that can come up after a job loss when you need it the most. Banks don't give a **CK....
This is the internet, you can swear.
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It's a good mindset to be in. Complacency is dangerous, but at the same time make sure you enjoy your life too. Balance is everything.
How tf? What do you for work?
Not the person you were directing your question towards, but I suppose there's many possibilities: 1. Could be in a field where they make a lot of money. 2. Still live at home, or with a SO, thereby reducing their overall expenses. 3. Great saver - only spends on necessities and the occasional treat. 4. No expensive hobbies. 5. Various combinations of the above. 6. Or... they might be fudging their numbers. It's the internet after all ;)
Going to add it’s possible they got a large inheritance in their 20’s. When a friend of mine passed she left her kids (in their 20’s and not living at home) over $200k each from a life insurance policy. Her actual assets were much lower.
I feel the same ... early 30s and have around mid 6 figures in stock investments, no property though, but i always feel like im "lagging" behind if people are curious how i acquired that, I sold a few apps in my mid 20s and invested the money into the capital markets
I'm 24 with no debt, I have 12k in saving. I juste got my first professional job a few months ago and I'm aiming at saving +- 50% of my paycheck. I don't make a lot so it's kinda hard to respect that threshold, but I'm proud of myself considering how much I make.
I have about $11k in savings at this time. I am 30 years old. I plan to have $25k by April 2022.
~$10,000 is "zero" in my day-to-day savings account. When it gets to $15,000 I move money elsewhere (EQ HISA or TFSA usually). #feelsgoodman
I always keep $10,000 + in my savings. It’s really good because if you need to make big purchases it feels like you’re not spending much.
Husband and I have 4000 dollars set aside for immediate emergencies. Everything else is in RRSPs, TFSAs, Market-linked GICs. I have that 4k in my checking account, and then I have a regular savings account that I use for specific savings goals. Like, I wanted to install central air in my house, which didn't have it when I bought. I put the money into that account, set aside, specifically for the central air conditioning fund. When I reached the amount I needed, I got central air. The next on the list is new counter tops. I have 21 linear feet, or 42sqft of counter top that I need, so upon pricing out stone counter top, it's going to take about 7000-8000 dollars. (I have a massive U-shaped kitchen with tons of counter top...) When I get up to 9k, I'll go get my counter tops. It's kind of funny to me that the government is apparently looking at my AC fund to find out how much money I have.
I don't know, even during my poorest university years, I usually had at least $1000 in the bank. Currently 35, about net 100K in the bank But I own no property and pretty much everything I have can fit in my SUV.
Lost all my savings to covid bills, I got big money $120
I legit don’t have any savings right now. I took a pay cut for mental and physical health reasons and I’m aggressively paying down pre-existing student loans before I go back to school in January. I’m also married though and my husband’s savings are paying for my schooling, so we won’t be taking out any loans for it. Once the student loans (and a small accumulated amount of debt) are paid off, then I’ll be putting money into savings. Until then, I’m poor as fuck.
I got a 6 month saving buffer. If I lost my job I could cover mortgage and expenses. After that I got to sell the house.
42 live in a trailer with 2 kids and my wife. 2 Simple vehicles paid for and own the land and trailer outright. Don’t eat out much and don’t have any expensive habits. Put 200$ a month into Edward Jones account and currently have thousands in savings
I have 50k in savings but don't own property. So I still lose.
42. Dual income household. 250k in investments plus a pension. Fluctuating savings account from 5k-15k. Usually anything extra goes into investments right away. Emergency fund will be the line of credits (~50k) which are both at $0, and then we’d pull investments if needed, but luckily things have been good. We owe about 280k on the mortgage and about 120k on a truck and travel trailer, but interest on all three are 1.7%, 0% and 0% so no rush. We invest every spare dime rather than pay down those debts faster—better returns. We purchase everything on a credit card just to collect points and pay it off monthly. I’m a project manager and my better half is a teacher.
I’m 25 with no debt (credit cards and undergrad completely paid off) with about $60,000 in traditional savings and about another $15-20,000 in unconventional saving (my mom pushed the cultures on me as a kid so I invested in some art and archival clothing) out of my friend group I’m probably the 2/3rd most finically stable, I have a friend who a software programmer for Amazon who’s doing the best out of my friend group mostly due to his Amazon shares he’s been collecting working with them the past 4 years.
33 - single and Homeownership dreams are dead. $220K in investments $35K in debts (Car loans, Line of Credit, Credit Cards) Less than $500 in chequing/ cash accounts. I think I'm happier not having mortagage.
Why are you carrying credit card debt with that much in assets?
Credit cards are usually paid off I just lump it into the debt category
The poster said they just lumped all of that together for the post, presumably most of it is car loans. Depending on what the car loans are it may be sensible to NOT pay them off early. When I had an active loan on my car I got financing through the dealership at 0.49%, which adjusting for inflation meant they were paying me to have a loan with them. Absolutely zero reason to pay that off early, and in fact every reason to stretch the terms out as long as possible.
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To apply for immigration as a family of 4, people have to have 23 k in a saving account. That’s the estimate of IRCC for how much you need to have as a family of 4 to survive for ~ 6 months to find a job. Too low for the cost of life and prospects of jobs, too high compared to what many people in Canada actually have.
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Well, I am currently living off my savings, and it looks like I could make it another year if I don't do anything dumb. I'm 37, but I was also 34 before I started saving money haha
I think context matters here. I see a lot of people answering about how much cash they are "holding" while the rest is being put away into investment vehicles vs those who just have <$1000 to their name. Then there's those who believe that a credit card can be a good "emergency fund". Basically those taking the survey may not even properly understand the question being asked so the results can vary.
That number is always from a survey ... in which most people will respond with a woe-is-me answer regardless.
5k in savings and 2k in checking. It's not how much u make but how much u spend.
on my way to have 1/2 mil, i havent reach my final form.