Do you save?
Well… according to Statistics Canada, you likely don’t.
I exaggerated a bit. You do save…. but less than 1% of your paycheque (0.8% to be exact). Saving rate of 0.8% has’t been seen for many decades. Maybe it was seen in great depression era?
See for yourself
Household Saving Rate in Canada
What does that mean?
An average Canadian makes $51,000 per year.
That is equivalent to $4,250 per month.
Canadian Government takes $455
Provincial Government (Ontario) takes $235
Canada Pension takes $196
Employment insurance takes $70
What you have left is $3,294 per month.
0.8% of $3,294 equals to $26…
Did I calculate it right?
Shocking and speechless
No excuses allowed. You really need to save. Tomorrow always comes then one day something bad stumbles upon you. When your life throws punches at you, friends and family may help at their mercy but what you can 100% count on is the money in your bank that you have saved overtime. Hopefully that will earn you enough time to prepare for your next fight.
Last week, General Motors announced shutting down its plant in Oshawa in 2019. That’s close to 3,000 employees losing their jobs. About 160,000 people live in that city and the ripple effect from the plant closure will be devastating to the community.
That’s terrible but again that can happen to you anytime. That’s why you need to be prepared.
Some people wrote me in the past.
“It is easy for you but it is not easy for me because I have kids”
Well. Let me break it to you.
If you have kids then you need to save even more so than me because your responsibility for your family is far greater than mine. All I got is my wife and a dog.
Me? Losing job? I can pack up and go anywhere in the world that have a job for me within a few weeks.
You, with the kids and the family? Moving isn’t as easy as mine.
No more poor financial decisions.
I am well aware making people save is almost as hard as turning meat loving people as vegetarians. I tried and failed before but I hope you find a moment to look at yourself and change.
If you feel guilty while you are reading this, let’s start something right now. Let’s not wait until the new year. New year resolution starts from now.
I know it is not going to be easy but you can do it. You don’t need to cut down your lifestyle drastically.
I cannot tell you how but here is what you can do. Go through every little expenditures you made last month and see what you can cut down. Maybe a little less visit to your fancy Italian place, cutting down your purchases on clothing and shoes or cellphone plans… Whatever works but only you can do it.
Every little thing adds up. I hope to see your saving rates get closer to 15-20% some day and write me a thank you letter.
Once you master both of the worlds, you should be able to forecast a day to tell your boss to F off.