Personal Finance

51% of Canadians living paycheque to paycheque. Are you?

  • Last Updated:
  • Sep 17th, 2014 12:56 pm
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Sr. Member
Jul 18, 2014
727 posts
58 upvotes
Toronto, ON
IceBlueShoes wrote:
Sep 12th, 2014 4:20 am
Well the question was 1 paycheck, so I guess I'm about 6-7 paychecks away without draining investments.

Still not much and something I plan on fixing sooner than later.
yeah but those people who are living one paycheck to next one paycheck and can survive without one only, might own cars and houses too, which they can sell. So technically they can sell it and last a few months too until they are completely destitute and on verge of bankruptcy.
Banned
Jan 11, 2004
19816 posts
560 upvotes
IceBlueShoes wrote:
Sep 12th, 2014 4:20 am
Well the question was 1 paycheck, so I guess I'm about 6-7 paychecks away without draining investments.

Still not much and something I plan on fixing sooner than later.
Having 6-7 weeks worth of cash just sitting there for a rainy day is hard to do...I always just buy some etfs when I have a few k sitting there and sell it if I need it...seems to beat sitting there collecting 1% interest or less
Deal Addict
User avatar
Jul 19, 2012
1801 posts
250 upvotes
Canada
thankfully, i am not living paycheck to paycheck
i was always a saver and lived within my means
Jr. Member
Jan 18, 2014
198 posts
12 upvotes
UrbanPoet wrote:
Sep 12th, 2014 2:34 am
There's the classic 6 month rule. Save enough to cover 6 months living expenses in case there is an emergency.
I keep this rule too.
Deal Addict
Jan 14, 2011
1151 posts
338 upvotes
Maybe they're living P2P because they waste all their time on forums being grammar Nazis.
Deal Addict
User avatar
Dec 18, 2007
4171 posts
270 upvotes
learningropes wrote:
Sep 13th, 2014 2:29 am
yeah but those people who are living one paycheck to next one paycheck and can survive without one only, might own cars and houses too, which they can sell. So technically they can sell it and last a few months too until they are completely destitute and on verge of bankruptcy.
Perhaps, perhaps not.
A car will most likely sold at a loss and property really depends on where you're at.
Although if anyone has to sell their car or home if their pay cheque is late, then they have a BIG problem.
investnewbie wrote:
Sep 13th, 2014 10:09 am
I keep this rule too.
Working on getting back up to 6 months. Key goal of mine.
I'm looking for a NZ Silver Fern Kiwi coin! :)
Member
Oct 19, 2013
379 posts
121 upvotes
Toronto, ON
No. we do not live pay to pay.

My wife & I live below our means by design. We'll be mortgage free in 26 months (I'll be 48) with a decade yet to work before retirement.

1) Spend less than you earn.
2) Make substantial payments towards your outstanding debt(s). Then read #1 again.
3) Invest for your future like you give a f*ck. If you don't, who will ?

It's actually easy to accomplish, but it will take effort. You are not getting younger. Time is running out.

Take action.


Yes, we have investments while still paying down the mortgage. Our mortgage is open and we do make principal only payments. Both tax returns go towards the mortgage principal as well.
Deal Addict
Sep 6, 2010
1686 posts
430 upvotes
Vancouver
UrbanPoet wrote:
Sep 12th, 2014 2:34 am
There's the classic 6 month rule. Save enough to cover 6 months living expenses in case there is an emergency.
Bare minimum.
Sr. Member
Aug 29, 2004
871 posts
145 upvotes
guyver0 wrote:
Sep 11th, 2014 5:23 pm

People don't seem to understand that money isn't just to buy craps and whatnot, it can also be used to buy freedom and security. Freedom from work, security knowing that you don't have to listen to that a$$hole boss who tells you when to take your vacation. Set your own schedule, vacation, family time. Isn't that what life is all about, about control over your own time?

Of course, the capitalist in me always feel happy when people just consume and consume, generating profits for companies that sell cars, clothing, vacation, etc, and thus generate profits stock holders. As a rentier, I love to see wage slaves run in a hamster wheel, never going anywhere.

This is a GREAT post. Money gives you negative freedom - freedom to not have to do things you don't want to do.
Deal Addict
Jan 15, 2009
1030 posts
356 upvotes
Just north.
Spazmogen1 wrote:
Sep 13th, 2014 1:04 pm

3) Invest for your future like you give a f*ck. If you don't, who will ?
Well said. Yet if you look at the people around you and some of the questions on RFD, they mostly revolve around buying RE, cost be damn. No one thinks about saving up the money to invest in themselves. One poster makes $50k a year, and thinks that he should go buy a condo. He should use his inheritance to educate himself better, and get a better job and make better salary.
Member
Oct 19, 2013
379 posts
121 upvotes
Toronto, ON
guyver0 wrote:
Sep 13th, 2014 1:44 pm
Well said. Yet if you look at the people around you and some of the questions on RFD, they mostly revolve around buying RE, cost be damn. No one thinks about saving up the money to invest in themselves. One poster makes $50k a year, and thinks that he should go buy a condo. He should use his inheritance to educate himself better, and get a better job and make better salary.
Many here are too young to know what a real estate downturn does to personal & national finances. I lived through it immediately after I graduated college in 1989. 1989 was the last real drop of significance. But resistance is futile; they will be taught a life lesson. Real estate has been dropping for months in my area (outside the GTA,) since springtime. It's now a buyers market. There's no bidding wars, bids are now under asking price..."reduced" stickers on the sale signs are normal.

The current debt orgy will not end with an enjoyable climax for many. Even the American press are now watching us like we're in a fish bowl...

The bond market has already indicated mortgage rates will be rising soon. Banks borrow long-term money in the bond market for mortgages, so the bond market dictates the rates, not the banks.
Deal Guru
User avatar
Oct 3, 2006
10372 posts
734 upvotes
Toronto
I currently live paycheck to paycheck because I rack up huge credit card bills every month (~$10k) due to business expenses. I rely on the company paying me on time so I can pay off the bill every month.
Deal Addict
User avatar
Sep 16, 2012
3065 posts
316 upvotes
Mississauga
financial education is key, the trend has been growing since the recession. Jobs disappear and with more part time work being available people have a harder time saving/investing so if they do lose there job they have a rainy day fund.
Deal Addict
Feb 5, 2010
2764 posts
176 upvotes
scarface wrote:
Sep 13th, 2014 1:37 pm
This is a GREAT post. Money gives you negative freedom - freedom to not have to do things you don't want to do.
Quote Originally Posted by guyver0 View Post

People don't seem to understand that money isn't just to buy craps and whatnot, it can also be used to buy freedom and security. Freedom from work, security knowing that you don't have to listen to that a$$hole boss who tells you when to take your vacation. Set your own schedule, vacation, family time. Isn't that what life is all about, about control over your own time?

Of course, the capitalist in me always feel happy when people just consume and consume, generating profits for companies that sell cars, clothing, vacation, etc, and thus generate profits stock holders. As a rentier, I love to see wage slaves run in a hamster wheel, never going anywhere.
To simplify: Money gives you options.
Deal Fanatic
Nov 2, 2013
5253 posts
1130 upvotes
Edmonton, AB
When I first started working this was true for me. What do you do without parents with money giving you a roof and/or paying for everything, when you're just starting out ?
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