Personal Finance

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

  • Last Updated:
  • Sep 17th, 2014 12:56 pm
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Deal Addict
Aug 14, 2007
2327 posts
203 upvotes
Waterloo
I am currently living paycheque to paycheque since buying my house 1.5 years ago. Will hopefully have rest of my LOC paid off sometime early next year and can finally start saving.
Deal Guru
Dec 31, 2005
13306 posts
727 upvotes
I guess technically we are...

But in reality, I have 11% of salary put into a RRSP account, Work adds 6.25%, then 3% for DCPP. I have 300 a month deducted for RESP...

Now that all being said, if we look at takehome every two weeks, I alternate: 1 for mortgage, 1 for expenses in the past 4 weeks.

Bonus sits on top of this and usually goes for Property Tax and Vacation.
Deal Guru
User avatar
Mar 1, 2004
12862 posts
1466 upvotes
Pickering
chrischris84 wrote:
Sep 10th, 2014 3:42 pm
Shouldn't the strategy be reversed? If you can get higher gains than these low 2-4% mortgages with investments, why not invest instead? As long as it's done in a way the money is accessible, you're better off going with the highest gain. There are many other factors involved that could stop this from being a wise choice: not confident in the ability to get higher gains, dont like the risk, low extra payment options on the mortgage when rates rise, etc. Personally, even if you break even, I'd rather have the extra mortgage payments in a TFSA as added emergency money.

That being said, for most people, I agree :lol:
This.
rodbarc wrote:
Sep 11th, 2014 8:52 am
Not if you leverage.
Make money on borrowed money.

Rod
And that. You can either pay down your mortgage with low interest loans or invest with the same loans and generate enough income to pay down your mortgage. The difference is, when money ceases to become cheap to borrow, you would still be paying your mortgage while the other person has extra monthly income to do so possibly without touching their paycheque. One scenario generates income, the other one cuts down on payments.. What will you do when your house is paid off? Look to invest the equity in an investment that generates a monthly income... Why not right now?

Scenario one, if money isn't cheap anymore, and you lose your job, have fun making payments. Scenario number two, you may have more to pay, but if you lose your job, at least the mortgage payments are taken care of. Get a job at Mc Ds to cover the rest.
Jr. Member
Sep 14, 2014
105 posts
11 upvotes
Vancouver, BC
I have some money saved up so I'm fine. I don't spend money on expensive clothes or the latest iPhones so that helps a lot. Of course, compare to a lot of people in my age, I'm not doing as well as them, but I guess I shouldn't be complaining!
Deal Addict
User avatar
Aug 5, 2011
2308 posts
186 upvotes
YF
Currently saving 15% of my salary. Looking to increase that to 20%.
Newbie
Sep 13, 2014
56 posts
3 upvotes
Mississauga, ON
Cas77 wrote:
Sep 10th, 2014 12:52 pm
I wouldn't call it luck. I'm sure you make sacrifices others refuse to for that peace of mind.
+1, This isn't a lottery, you have made the choices that enables you to have a bit of financial freedom.

good on ya.
Deal Addict
May 28, 2007
1019 posts
68 upvotes
Nowheresville
FirstGear wrote:
Sep 13th, 2014 6:48 pm
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 ?
I started working when I was around 12. Earned entrance scholarship for university and worked part-time. First apartment was on the ground floor in one of the cheapest areas of the city. No vacations, no electronics. That's how I lived without taking money from mommy and daddy.

That being said, with the mess that govts and central bankers have created everywhere, only way to save for young people is to live at home for as long as possible, don't buy any crap, put a positive face on and hope for the best.
Deal Addict
May 28, 2007
1019 posts
68 upvotes
Nowheresville
Spazmogen1 wrote:
Sep 13th, 2014 2:29 pm
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.
Luckily, I too witnessed the effects of the tail end of the last real estate crash - home sellers so angry they threw the keys at people because they sold their places for considerably less than what they paid for. I also witnessed the tech bubble and heard horror stories. I can only imagine the carnage this time around. Did anyone see the Metro today about the 2 couples and their financial stats?
Deal Addict
Jan 15, 2009
1031 posts
356 upvotes
Just north.
Or the BC teacher with only $6 in her account after 3 months of strike.

http://globalnews.ca/news/1538270/teach ... ch-a-deal/

This might be the catalyst for some people to sell their houses just because of lack of income. What I don't understand is what makes financial sense for a single mother of 2 to buy a house?
Sr. Member
Jul 18, 2014
727 posts
58 upvotes
Toronto, ON
guyver0 wrote:
Sep 16th, 2014 12:00 am
Or the BC teacher with only $6 in her account after 3 months of strike.

http://globalnews.ca/news/1538270/teach ... ch-a-deal/

This might be the catalyst for some people to sell their houses just because of lack of income. What I don't understand is what makes financial sense for a single mother of 2 to buy a house?
Thats some teacher huh. She even said she doesn't care about students. She is looking after herself first. I think she should sell her house first.
Deal Addict
Jan 15, 2009
1031 posts
356 upvotes
Just north.
There isn't anything wrong with looking after No. 1, everyone does that, even the teachers who hide behind the banner of "students first!" What's wrong with the aforementioned teacher is her clueless attitude towards her finance. Buying a house with a job that doesn't sound stable is just plain asking for trouble. What part of "You can't FCUKING afford it!" does she not understand. If all her income goes to mortgage and her kids, there aren't any emergency funds then.

What happens next time when there's another strike, will we have to hear the same old poor-old-me story from some financial idiot? Or that she injured in a car accident?
Deal Expert
User avatar
Oct 26, 2003
30266 posts
2472 upvotes
Winnipeg
guyver0 wrote:
Sep 16th, 2014 12:00 am
Or the BC teacher with only $6 in her account after 3 months of strike.

http://globalnews.ca/news/1538270/teach ... ch-a-deal/

This might be the catalyst for some people to sell their houses just because of lack of income. What I don't understand is what makes financial sense for a single mother of 2 to buy a house?
with a house she can dip into her HELOC, that title is merely for sensationalism, she can easily last few more months just from LOC alone.
Deal Addict
Jan 15, 2009
1031 posts
356 upvotes
Just north.
divx wrote:
Sep 16th, 2014 11:52 pm
with a house she can dip into her HELOC, that title is merely for sensationalism, she can easily last few more months just from LOC alone.
True, but it depends on how much equity is in the house. If it's one of those 40 year mortgage loan, I doubt there would be anything.
Penalty Box
Apr 16, 2012
3565 posts
683 upvotes
Greely
guyver0 wrote:
Sep 16th, 2014 10:38 pm
There isn't anything wrong with looking after No. 1, everyone does that, even the teachers who hide behind the banner of "students first!" What's wrong with the aforementioned teacher is her clueless attitude towards her finance. Buying a house with a job that doesn't sound stable is just plain asking for trouble. What part of "You can't FCUKING afford it!" does she not understand. If all her income goes to mortgage and her kids, there aren't any emergency funds then.

What happens next time when there's another strike, will we have to hear the same old poor-old-me story from some financial idiot? Or that she injured in a car accident?
Lol why does it make u angry she is buying something she can't afford?

People buy BMWs when they can't afford it all the time.

Are you telling me u stand beside cash advance stores and yell at ppl too for making poor financial decisions?
Deal Fanatic
Mar 24, 2008
5617 posts
1714 upvotes
Toronto
guyver0 wrote:
Sep 16th, 2014 10:38 pm
There isn't anything wrong with looking after No. 1, everyone does that, even the teachers who hide behind the banner of "students first!" What's wrong with the aforementioned teacher is her clueless attitude towards her finance. Buying a house with a job that doesn't sound stable is just plain asking for trouble. What part of "You can't FCUKING afford it!" does she not understand. If all her income goes to mortgage and her kids, there aren't any emergency funds then.

What happens next time when there's another strike, will we have to hear the same old poor-old-me story from some financial idiot? Or that she injured in a car accident?
She's been without an income for almost 3 months (going into 4th month) with 2 kids to feed. She doesn't qualify for EI because of the type of job she has (guaranteed employment). I would be very curious to know how many here have enough money socked away that they can live 4 months without an income. If she didn't own the house, she still have to pay rent. It's easy to judge others I suppose but let's keep things in perspective.

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