Personal Finance

Wow I am so shocked to find out almost NOBODY has put away money for a rainy day? No emergency Fund? Shocking!!

  • Last Updated:
  • Apr 17th, 2020 3:44 pm
[OP]
Penalty Box
Jun 24, 2015
3610 posts
1043 upvotes
Woodbridge, ON

Wow I am so shocked to find out almost NOBODY has put away money for a rainy day? No emergency Fund? Shocking!!

This whole Covid19 outbreak and everyone I know getting laid off is making me realize that almost Everybody I talk to, lives paycheck to pay check and does NOT have any kinds of money put aside for a safety nest. Like how in the heck does someone NOT think about that? My first layoff like 15 years ago when I was still fairly young made me realize the importance of having a safety net, I also had a second job which I worked evenings and weekends which gave me support to make it thru my layoff before I was able to find another steady job.

All these people I talk to (on the phone because of physical and social distancing of course) live pretty much paycheck to paycheck and have no money put aside, no rrsp, no tfsa, some dont have a pension plan because it makes their take home pay check bigger, wow, i am just shocked, im so glad Ontario is making a mandatory financial literacy course for high school students but it does not help the people who are already out there.
Hi
376 replies
Deal Addict
May 16, 2017
1043 posts
1168 upvotes
Depending upon where people live, the cost of housing (mortgage or rent) puts a big chunk of the population into a barely viable financial position with little left for savings.

It is very easy to play the blame-game and point to lack of financial education; and, while that is true to some extent, the formal financial education pales in comparison to the day-by-day "education" that we are all bombarded with by society to go into debt to the max to buy the best house we can and with the encouragement of low interest rates to fuel the economy with borrowed $$$ at every level from personal-business-government.

Live-the-dream is the far surpassing societal message.
Deal Addict
User avatar
Aug 7, 2007
3381 posts
1497 upvotes
GTA
You don't know other people's financial situation. Stop assuming they don't have an emergency fund because of their frivolously spending. Ignorant.
Deal Addict
User avatar
Mar 10, 2018
3592 posts
700 upvotes
GoodFellaz wrote: This whole Covid19 outbreak and everyone I know getting laid off is making me realize that almost Everybody I talk to, lives paycheck to pay check and does NOT have any kinds of money put aside for a safety nest. Like how in the heck does someone NOT think about that? My first layoff like 15 years ago when I was still fairly young made me realize the importance of having a safety net, I also had a second job which I worked evenings and weekends which gave me support to make it thru my layoff before I was able to find another steady job.

All these people I talk to (on the phone because of physical and social distancing of course) live pretty much paycheck to paycheck and have no money put aside, no rrsp, no tfsa, some dont have a pension plan because it makes their take home pay check bigger, wow, i am just shocked, im so glad Ontario is making a mandatory financial literacy course for high school students but it does not help the people who are already out there.
not everyone has six fig salary like on RFD. And living in Toronto is not easy.
Plus many people have really high standard compared to their paycheck and have little money. Others salary is not enough to save. Its not easy or cheap to live in and around Toronto
I dont care about Ethics, morals, rules or laws. I will apologies only when I get caught.
I try not to apologies but sometimes do it. not because its right thing but it benefits me.
New Mantra for idiots Just ask RFD before searching answers anywhere.
Deal Fanatic
Oct 7, 2007
6646 posts
2938 upvotes
Our society has created an environment where it is perfectly acceptable to live like a movie star by borrowing as much as possible without any care to paying it back. This type of spending leads to a lack of care and diligence for living within your means and/or putting money away for a rainy day. Furthermore, we are living in a snowflake era where people are very soft and care more about offending people by closing our airports than taking the protective measures needed to shield the population from the virus. I am not saying whether being politically correct is good or bad but being politically correct will not help a species survive a pandemic. It will actually make us weak and probably end up in more death and suffering than being tough. The most dangerous thing that we might be doing here is communicating to everyone that they actually don't need to have an emergency fund because anytime something bad hits, our government will bail you out. This is not the kind of messaging that makes for a strong population with a high sense of personal accountability.
[OP]
Penalty Box
Jun 24, 2015
3610 posts
1043 upvotes
Woodbridge, ON
Listen both of you, I certainly do not have a 6 figure salary either, I built my rainy day fund working A MINIMUM WAGE JOB, for years, i worked and worked and can put money aside, it has ABSOLUTELY NOTHING TO DO WITH MORGAGES or cost of housing, its peoples mindset, financial literacy 100%. instead of going on that mexico trip with your friends every year, dump the money into a savings account, instead of blowing your yearly bonus on a new counter top, put it in the bank, instead of going to restaurants, stay home and cook, its people who live like theyre free spirited and free birds who don't do this crap and pisses me off but its not my problem, if i get laid off, i can survive for the next 6 months and pay mortgage, pay bills, etc, this should be MANDATORY for everyone. not just me.
Hi
Jr. Member
Nov 24, 2019
151 posts
292 upvotes
Saskatoon
GoodFellaz wrote: Listen both of you, I certainly do not have a 6 figure salary either, I built my rainy day fund working A MINIMUM WAGE JOB, for years, i worked and worked and can put money aside, it has ABSOLUTELY NOTHING TO DO WITH MORGAGES or cost of housing, its peoples mindset, financial literacy 100%. instead of going on that mexico trip with your friends every year, dump the money into a savings account, instead of blowing your yearly bonus on a new counter top, put it in the bank, instead of going to restaurants, stay home and cook, its people who live like theyre free spirited and free birds who don't do this crap and pisses me off but its not my problem, if i get laid off, i can survive for the next 6 months and pay mortgage, pay bills, etc, this should be MANDATORY for everyone. not just me.
Yup, the average person absolutely LOVES to make excuses instead of making sacrifices. It's crazy to me how many people complain about money, but go on vacations, have newer vehicles, new phones, shop at malls for overpriced crap all the time, etc. And they just have to complain about how expensive Toronto is, as if there isn't an entire country outside of Toronto available that's cheaper to live in, but no, gotta be in the centre of the universe. People are drowning in debt for no reason at all. The very first thing I was told when getting my first credit card, was to use it like debit. Pay it off every month, and if you don't have enough money in your account, then you can' t buy it, period. You finance a house, maybe a vehicle, and nothing else. Everything else you either pay upfront or don't purchase.

One of the best perspectives I ever got on money was from a coworker I had. Family of 4 with a single mother (dad was a drunk that died on the doorstep) and completely dirt poor. Old square farmhouse, they lived on mostly rice and potatoes for years, hand me down clothes, did their own house/vehicle maintenance. Absolutely no frills, they'd go to the town dump back when that was allowed, and pull out old lawnmowers, bikes, etc that others had thrown away, fix them up, and keep them. The guy I worked with had cleanup shifts at a bar at 2-3am before going to school in the morning. He ended up going to tech school for mechanics, and one of his teachers argued that it wasn't possible to live on the money they had, even though he was proof of it. Crazy to think about to me, but he was fine with growing up that way, and it taught them the value of money and a lot of life/handyman skills. All 4 kids became quite successful in life, my coworker continued living within his means his entire adult life, fixing up old vehicles, saving what he had, only ever financed a house while buying literally everything else with cash, did a lot of tough manual labour jobs when he was younger, and just retired last year at 52. It's possible, but the average person can't even comprehend that level of sacrifice.
Member
User avatar
Jan 7, 2019
265 posts
250 upvotes
My rainy day fund is access to lines of credits and HELOCs north of $500,000. Am I a true RFD-er now?
Remember to always Thumbs Up good responses! Spread positively.
Deal Fanatic
Apr 16, 2007
7545 posts
2732 upvotes
Financial District B…
GoodFellaz wrote: Listen both of you, I certainly do not have a 6 figure salary either, I built my rainy day fund working A MINIMUM WAGE JOB, for years, i worked and worked and can put money aside, it has ABSOLUTELY NOTHING TO DO WITH MORGAGES or cost of housing, its peoples mindset, financial literacy 100%. instead of going on that mexico trip with your friends every year, dump the money into a savings account, instead of blowing your yearly bonus on a new counter top, put it in the bank, instead of going to restaurants, stay home and cook, its people who live like theyre free spirited and free birds who don't do this crap and pisses me off but its not my problem, if i get laid off, i can survive for the next 6 months and pay mortgage, pay bills, etc, this should be MANDATORY for everyone. not just me.
Well it does somewhat have everything to do with mortgages.
I posted in another thread that we have done our own debt service studies and have found that more than 55% of all people with mortgages would not be qualified or be approved for the same mortgage post 18 months after moving in to their new home. Homeowners TDSR are through the roof.
Lets also say that people who did save a lot used all that rainly day savings as down to beat the cmhc insurance. All gone.
If you want to talk mindset well you have it totally backwards. People with mortgages are more likely to use a lot of revolving credit and LOC's for home upgrades like new appliances, new floors, other reno's.
If we could take two groups, those with mortgages and those without. The ones with mortgages will have a significant higher debt service over those who don't.
Yes they worked hard reducing their debt service prior to mortgage acceptance to 35%GDS/42%TDS. Perform the same calc on them now and they would almost be double
What you're describing is not reality.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
[OP]
Penalty Box
Jun 24, 2015
3610 posts
1043 upvotes
Woodbridge, ON
mikeymike1, i have absolutely a hard time understanding what you just said, and secondly, I have a mortgage just like every other Canadian and Ontarian on here and I would only do upgrades to new appliances when they break down, or are too expensive to repair, and I would not do any renos when you are fresh into moving into your first house, wait a bit, build some equity, save up a bit, then do it. you can thank me later. and to answery your question, 18 months after moving in, i would qualify for a bigger mortgage than i did before, because i worked hard and increased my salary and got raises and such
Hi
Deal Fanatic
Nov 22, 2015
5516 posts
4806 upvotes
Lmao, as if a financial literacy course will do anything...
Deal Addict
Nov 18, 2015
1576 posts
1252 upvotes
i agree. ppl need to live within their means. i know a lot of ppl waiting for ei and are scared.
Deal Fanatic
User avatar
Jan 9, 2011
7625 posts
8298 upvotes
Vancouver
GoodFellaz wrote: This whole Covid19 outbreak and everyone I know getting laid off is making me realize that almost Everybody I talk to, lives paycheck to pay check and does NOT have any kinds of money put aside for a safety nest. Like how in the heck does someone NOT think about that?
People who bought homes in the last decade don't have money to put away for savings. Who can save when everything goes to the mortgage payment. And their parents who bought houses in the 60s and 70s when they were dirt cheap pushing them to get into the market at conditions completely different to their own didn't help matters either.
Sr. Member
Jul 21, 2009
893 posts
316 upvotes
Toronto
GoodFellaz wrote: This whole Covid19 outbreak and everyone I know getting laid off is making me realize that almost Everybody I talk to, lives paycheck to pay check and does NOT have any kinds of money put aside for a safety nest. Like how in the heck does someone NOT think about that? My first layoff like 15 years ago when I was still fairly young made me realize the importance of having a safety net, I also had a second job which I worked evenings and weekends which gave me support to make it thru my layoff before I was able to find another steady job.

All these people I talk to (on the phone because of physical and social distancing of course) live pretty much paycheck to paycheck and have no money put aside, no rrsp, no tfsa, some dont have a pension plan because it makes their take home pay check bigger, wow, i am just shocked, im so glad Ontario is making a mandatory financial literacy course for high school students but it does not help the people who are already out there.
The economy was good for the last 10+ years. Everybody made a lot of money and saving is boring.

You can be sure when this is over the 30-40 year old's affected by this will be saving more and preaching to the younger soon to be working class to save too. Of course they wont listen until the next recession affects them and the cycle will repeat again....
Deal Fanatic
Dec 11, 2008
9958 posts
1470 upvotes
Well surveys all indicated about $200 away from not making payments so it should be no surprise. What is surprising is how many are living beyond their means. Some really do struggle doing the best they can but most are spending frivolously on junk and unnecessary expenses.

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)