Note: If we deduct CPP and EI , the 'after-tax income' in the example should be closer to 46k (instead of $50.5k). The principles of the Payday Routine still stands though.
I get paid bi-weekly, per cheque I put 200 into rrsp, 100 in tfsa, and 200 into fhsa totalling 500 per cheque, or 1000 per month. Seems to be going well so far, I live in small town in the west rent is 850 and cost of living is pretty affordable compared to big cities. Could live off 2k fairly easy luckily I make more than that.
I'm from Toronto and trying to get to a point of 50% of my pay in my emergency fund which is a TFSA. I don't really believe in rrsp...I heard horror stories about.. instead every 6 months or so I put spending money that I save into investments...like buy shares and stuff using wealthsimple. In regards to food I become more efficient with it I do intermittent fasting and only eat two meals a day which helps me stay in shape but also helps me save on groceries. Once you realize you can't have everything things will become easier
Try to make up your own mind about rrsp’s. Do some reading or YouTubing using credible resources. Unless you are extremely wealthy, most Canadians find rrsp’s useful. Good luck in your financial endeavours. :)
@@seethruhead7119Agreed. I started putting $50/mo into RRSPs when I was 18 and thought it was silly … but then I was able to withdraw $5k (borrow from myself because I had to pay it back to my RRSPs) when I was 26 to use on first time homebuyer mortgage. When I was in my 30’s I used our RRSPs to pay for my Master’s degree. Again, I had to pay it back to myself, but my pay increased by more than that after having a degree. In my 40’s a took a few years off for health and wellness and my income was really low, so I used RRSPs as income because I paid almost no taxes on the withdrawal. Last year, the money remaining in my RRSPs increased over 20% and I did no work for that and wont have to pay taxes on it until I retire. They have been great my whole life for homes, school, retirement, and in emergencies, and are free money when my employer matches.
Just become a minimalist. That'll save you a lot of money. Not a lot of people are making 60 k a Year. So I wonder where she pulled out this avg number from.
That's true. Useful in almost all areas of life. Create and follow a routine, then, once in a while, break it and set up a new one to prevent monotony!
this place is a big scam rn and they dont want the housing market to crash or go down because millions will be lost its all about greed until it ACTUALLY HAS no choice but to crash
Most of my saving is automatic. Few hundred from paycheck into RRSP, company pays a few hundred into a deferred profit sharing plan (pension thing too), A few hundred from my savings account every 2 weeks goes into RRSP/TFSA, which gets invested into stocks (most with dividends) ...so I can't forget to save it. The RRSP/TFSA is tax deductible and with the personal ones I get tax back at end of year. Not a millionaire by any means, but it's a good system for me who would forget to save otherwise
Way to go girl! I moved from Ireland to Toronto almost 2 years ago and love how pro investing it is over here. While the property market I feel is completely over valued, I've been heavily investing in the stock markets since being here. On a separate note, your skin is fab, do let me know what moisturizer(s) you use ☘😄
Good tips overall! Only suggestion would be to include insights to help small businesses owners. Tax structure is different and as an entrepreneur there are no RRSP matching benefits.
In Ontario we also pay CPP (6%) and EI (1.7%) and usually a retirement fund (10%). So lets take another 18% off of that $50,500 before we play with our buckets!
You're right! Yes, that reduces the number even further. Turbotax calculates the estimate for CPP and EI as well, I just haven't included it in the calculation. So the net should be closer to 46k. Thanks for noting!
Excellent strategy... You're right, the only difficult part is getting that job first that pays more than your expenses, if We can all do that, We'll be millionaires in no time at all!!! Set goals, save $50,000 year at 4% for example... If you have a good job and still live with your parents, or your split rent with someone else, you can easily do this! Thanks for the video, byeeeee 🎉
Hi - can you make a video for people who have a retirement pension plan but want to maximize their retirement savings/income - what are the best vehicles to do so; RRSP vs. TFSA in order to reduce taxes paid during retirement. Thanks!
I need to make several changes in my spending/saving to acheive some of these goals but on top of my day job I do sell on Poshmark to suppliment my income and it's fun!
Hi there ! Love your content! Where would you suggest I put my “emergency vet visit” savings ? Right now it’s in a very sad excuse for a savings account with TD. We hadn’t touched the money in 2 years (just contributed), the interest earned on the money was nearly nothing, but yesterday I had to pull out 4g very quickly. I want to start building that back up again, but I want it to make me money until the next time I have to pull from it. I don’t think a TFSA is good because I could potentially be putting and pulling money out numerous times (never know with my crazy animals)😅… but I want it to make money while I’m not touching it. It also can’t be somewhere that takes forever for me to get it, I had to e-transfer that money immediately and have it land right away… if that makes sense. Thanks!
Great question! It really depends on how much liquidity you need. I know it's a hard trade off to make, between %reward and liquidity! This is one way you could set it up (not financial advice!): 1. I would always leave at least $1-2k easily accessible in a checkings/savings account, even if it doesn't make money. But nowadays there are so many 'cash accounts' or 'HISAs (High Interest Savings Accounts) you can open with almost any financial instutions that will give you about 3% p.a
Stopped video on the phrase: let’s pretend you can make it on 50% of your net income. However, phrase: you should start with RRSP - your employer match it - also doesn’t connect with the reality for many people.
It takes making some really hard decisions (splitting rent, perhaps even moving back with parents). For some people, even then it doesn't work. The concept of the payday routine still applies to anyone who can put aside even 10, 20% of their paycheck.
Great content thank you. Question I have my own incorporated company that I pay my wife and I from. Can I do the employer RRSP matching? If yes how would I do that?
Yeah nobody lol. I make $2000 a month after taxes a month maybe a bit more now that's it. To make $4200 you have to be working a high class job for the city or be a low end teacher with University degrees.
Yes, technically, the money put in the FHSA is after-tax (as taxes are usually deducted by the employer). Then during tax reporting in the following year, the amounts can be deducted for the taxable income, which result in a lower tax bill, and MAY result in a tax refund (same for the RRSP)
I live in a small town but even here, housing is not cheap. One of my friends pays $1500/mo. rent for a one bedroom basement suite and that doesn't include some utilities. There is a 1% vacancy rate in town so it's very difficult to find housing, never mind shared housing. Plus though there is some public transit, it is limited and not practical for her, as she works shift work. As well, the cost of food has increased substantially, as have other costs. Using your formula, my friend should be underwater financially. Yet she is able to own her own car and has a cat. She is 68, still working, and recently took a part time job cleaning the building she lives in so that she can afford the rent increase. She is frugal but is that enough?
That would be ideal, but the routine works with smaller amounts, even 'leftovers' of just $100. What matters is having a routine, starting small, making it a habit. After some time, with an increase of income, the effects of implementing it will be felt even more. All the best!
As an immigrant What would you suggest should we invest in international market too? Secondly, not sure about the future in canada for such case does rrsp and fhsa nulls out?
I personally am most comfortable investing the majority into index etfs, as they provide stable growth over the long run and a lot of diversification. As for the second question-the value of investments definitely depends on the stability of the country!
Yes, you usually choose between either a 6 months, 1 year, all the way up to 5-year period during which you can't withdraw the money without a penalty. That's why it's important to time the GICs, and possibly split up the amounts according to your needs. It's called a 'GIC ladder'. Hope that helps!
The whole tax thing is confusing. My mates pre-tax is 70k but his monthly is less than 4200, while the pre-tax example of 60k is equivalent to 4200 monthly. Confusing.
You enter into different tax brackets as you salary increases past a certain amount. 70k tax bracket is calculated by an average of 28.7% or marginal tax rate of 32.7% in Ontario as per google. So take pay is a little under 50k. 😢
It depends on where you invest the money within the FHSA. The FHSA itself is just like a pot with tax advantages. The returns you get will depend on the particular investment products you invest it in, e.g. if you put the money in GICs, you get a fixed interest, if in stocks, appreciation (growth) and sometimes dividends.
That's right, it can only work for people splitting rent, staying at their parents home, or if they're still benefiting from an old cheap rent contract. For people renting as and individual in 2024, it's impossible.
tis valuable information! thank you for sharing. John 3:16-18 King James Version 16 For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. 17 For God sent not his Son into the world to condemn the world; but that the world through him might be saved. 18 He that believeth on him is not condemned: but he that believeth not is condemned already, because he hath not believed in the name of the only begotten Son of God.
The taxation calculation in this video is very far off and makes the earning potential in Canada seem way more attractive than it is. Income taxes are extremely high here folks, I don’t recommend it.
Hey, I pass by your videos from time to time. I love your advice, I wish you could guide me with a few little things along the lines of wealthsimple. But it's crazy when I started with them it started at 5% and now it's down to 3.25. I guess it's better than nothing right.
Note: If we deduct CPP and EI , the 'after-tax income' in the example should be closer to 46k (instead of $50.5k). The principles of the Payday Routine still stands though.
Subscribed. Simple, comprehensive and str8 to the point
Welcome to the channel!
I get paid bi-weekly, per cheque I put 200 into rrsp, 100 in tfsa, and 200 into fhsa totalling 500 per cheque, or 1000 per month. Seems to be going well so far, I live in small town in the west rent is 850 and cost of living is pretty affordable compared to big cities. Could live off 2k fairly easy luckily I make more than that.
That's awesome!
I'm from Toronto and trying to get to a point of 50% of my pay in my emergency fund which is a TFSA. I don't really believe in rrsp...I heard horror stories about.. instead every 6 months or so I put spending money that I save into investments...like buy shares and stuff using wealthsimple. In regards to food I become more efficient with it I do intermittent fasting and only eat two meals a day which helps me stay in shape but also helps me save on groceries. Once you realize you can't have everything things will become easier
if you're not using an rrsp you are flushing money down the toilet
it would be absolutely non-sensical to avoid rrsp
Could you share those horror stories about rrsp?
Try to make up your own mind about rrsp’s. Do some reading or YouTubing using credible resources.
Unless you are extremely wealthy, most Canadians find rrsp’s useful. Good luck in your financial endeavours. :)
@@seethruhead7119Agreed. I started putting $50/mo into RRSPs when I was 18 and thought it was silly … but then I was able to withdraw $5k (borrow from myself because I had to pay it back to my RRSPs) when I was 26 to use on first time homebuyer mortgage. When I was in my 30’s I used our RRSPs to pay for my Master’s degree. Again, I had to pay it back to myself, but my pay increased by more than that after having a degree. In my 40’s a took a few years off for health and wellness and my income was really low, so I used RRSPs as income because I paid almost no taxes on the withdrawal. Last year, the money remaining in my RRSPs increased over 20% and I did no work for that and wont have to pay taxes on it until I retire. They have been great my whole life for homes, school, retirement, and in emergencies, and are free money when my employer matches.
Just become a minimalist. That'll save you a lot of money. Not a lot of people are making 60 k a Year. So I wonder where she pulled out this avg number from.
Awesome always.😊❤
I've found following a ROUTINE in all aspects of life can't help but generate success 😊
That's true. Useful in almost all areas of life. Create and follow a routine, then, once in a while, break it and set up a new one to prevent monotony!
@@LivinginCanada😂👍
In Toronto, housing is 75% of my income. None of this is possible.
It is extremely difficult in Toronto. The only way is to either earn more or push the rent down by splitting it.
@ Not possible for me.
Possible to come it KWC region and commute? We are in the process of expanding the train to connect with Toronto
this place is a big scam rn
and they dont want the housing market to crash or go down because millions will be lost
its all about greed
until it ACTUALLY HAS no choice but to crash
Hey what’s your name!!
Most of my saving is automatic. Few hundred from paycheck into RRSP, company pays a few hundred into a deferred profit sharing plan (pension thing too), A few hundred from my savings account every 2 weeks goes into RRSP/TFSA, which gets invested into stocks (most with dividends) ...so I can't forget to save it. The RRSP/TFSA is tax deductible and with the personal ones I get tax back at end of year. Not a millionaire by any means, but it's a good system for me who would forget to save otherwise
Way to go girl! I moved from Ireland to Toronto almost 2 years ago and love how pro investing it is over here. While the property market I feel is completely over valued, I've been heavily investing in the stock markets since being here. On a separate note, your skin is fab, do let me know what moisturizer(s) you use ☘😄
Good tips overall! Only suggestion would be to include insights to help small businesses owners. Tax structure is different and as an entrepreneur there are no RRSP matching benefits.
Love how simple and real your video feels! It's so refreshing 😊
Thanks so much 😊
In Ontario we also pay CPP (6%) and EI (1.7%) and usually a retirement fund (10%). So lets take another 18% off of that $50,500 before we play with our buckets!
You're right! Yes, that reduces the number even further. Turbotax calculates the estimate for CPP and EI as well, I just haven't included it in the calculation. So the net should be closer to 46k. Thanks for noting!
Great video ❤
Thank you!!!
To the point and comprehensive, thank you!
Glad to hear, thanks!
Excellent strategy... You're right, the only difficult part is getting that job first that pays more than your expenses, if We can all do that, We'll be millionaires in no time at all!!!
Set goals, save $50,000 year at 4% for example... If you have a good job and still live with your parents, or your split rent with someone else, you can easily do this! Thanks for the video, byeeeee 🎉
Sounds like a great plan!!
Hi - can you make a video for people who have a retirement pension plan but want to maximize their retirement savings/income - what are the best vehicles to do so; RRSP vs. TFSA in order to reduce taxes paid during retirement. Thanks!
That's a very interesting topic, thanks for the video idea! I haven't looked into that yet but will think about it in the future!
Am I the only one who lives in toronto and doesn’t earn 60k 😢
I need to make several changes in my spending/saving to acheive some of these goals but on top of my day job I do sell on Poshmark to suppliment my income and it's fun!
Wow, great you get that done on top of your day job! Even better that you enjoy the process :)
sweet, lemme try....K I paid my bills and now all I have to do is dance on the street for food!
Hi there ! Love your content! Where would you suggest I put my “emergency vet visit” savings ? Right now it’s in a very sad excuse for a savings account with TD. We hadn’t touched the money in 2 years (just contributed), the interest earned on the money was nearly nothing, but yesterday I had to pull out 4g very quickly. I want to start building that back up again, but I want it to make me money until the next time I have to pull from it. I don’t think a TFSA is good because I could potentially be putting and pulling money out numerous times (never know with my crazy animals)😅… but I want it to make money while I’m not touching it. It also can’t be somewhere that takes forever for me to get it, I had to e-transfer that money immediately and have it land right away… if that makes sense. Thanks!
Great question! It really depends on how much liquidity you need. I know it's a hard trade off to make, between %reward and liquidity! This is one way you could set it up (not financial advice!): 1. I would always leave at least $1-2k easily accessible in a checkings/savings account, even if it doesn't make money. But nowadays there are so many 'cash accounts' or 'HISAs (High Interest Savings Accounts) you can open with almost any financial instutions that will give you about 3% p.a
Thank you so much for your thoughtful input !! I will definitely do some digging on the methods you’ve mentioned 😊.
Stopped video on the phrase: let’s pretend you can make it on 50% of your net income. However, phrase: you should start with RRSP - your employer match it - also doesn’t connect with the reality for many people.
It takes making some really hard decisions (splitting rent, perhaps even moving back with parents). For some people, even then it doesn't work. The concept of the payday routine still applies to anyone who can put aside even 10, 20% of their paycheck.
Great content thank you. Question I have my own incorporated company that I pay my wife and I from. Can I do the employer RRSP matching? If yes how would I do that?
Great information and advice to become financially healthy. Thank you!
Glad this was useful!
The real question is who's making $4200 a month in Canada...?
Yeah nobody lol. I make $2000 a month after taxes a month maybe a bit more now that's it. To make $4200 you have to be working a high class job for the city or be a low end teacher with University degrees.
According to Statistisca, 55.3% of Canadians make 60k and over...
In LIUNA 183 you could make $3,500 - $4,000 or more. But you're gonna work like a dog for it. Lol
An $80k salary before tax
Thanks hun❤❤❤❤🎉🎉🎉
‘Put part of your paycheque to FHSA to avoid tax’ means the paycheque you get after deducting the taxes?
Yes, technically, the money put in the FHSA is after-tax (as taxes are usually deducted by the employer). Then during tax reporting in the following year, the amounts can be deducted for the taxable income, which result in a lower tax bill, and MAY result in a tax refund (same for the RRSP)
I live in a small town but even here, housing is not cheap. One of my friends pays $1500/mo. rent for a one bedroom basement suite and that doesn't include some utilities. There is a 1% vacancy rate in town so it's very difficult to find housing, never mind shared housing. Plus though there is some public transit, it is limited and not practical for her, as she works shift work. As well, the cost of food has increased substantially, as have other costs. Using your formula, my friend should be underwater financially. Yet she is able to own her own car and has a cat. She is 68, still working, and recently took a part time job cleaning the building she lives in so that she can afford the rent increase. She is frugal but is that enough?
Well. Gives me a thought about this. Though I wish I had $5K for every paycheque.
That would be ideal, but the routine works with smaller amounts, even 'leftovers' of just $100. What matters is having a routine, starting small, making it a habit. After some time, with an increase of income, the effects of implementing it will be felt even more. All the best!
As an immigrant What would you suggest should we invest in international market too?
Secondly, not sure about the future in canada for such case does rrsp and fhsa nulls out?
I personally am most comfortable investing the majority into index etfs, as they provide stable growth over the long run and a lot of diversification. As for the second question-the value of investments definitely depends on the stability of the country!
Lovely insights!❤
Thanks as always🤩
My mom used to talk about GIC’s to me when I was a kid, she explained that there is usually a lock up period with a set return rate, is that accurate?
Yes, you usually choose between either a 6 months, 1 year, all the way up to 5-year period during which you can't withdraw the money without a penalty. That's why it's important to time the GICs, and possibly split up the amounts according to your needs. It's called a 'GIC ladder'. Hope that helps!
The whole tax thing is confusing. My mates pre-tax is 70k but his monthly is less than 4200, while the pre-tax example of 60k is equivalent to 4200 monthly. Confusing.
The example is only an estimation. In reality there are different factors that flow into the tax calculations (e.g. deductions)
You enter into different tax brackets as you salary increases past a certain amount. 70k tax bracket is calculated by an average of 28.7% or marginal tax rate of 32.7% in Ontario as per google. So take pay is a little under 50k. 😢
Interesting, where is the money for kids shoes and winter clothes for all family, not speaking about birthdays
It's not easy to find opportunities in a difficult place, but I would keep on searching!
Very informative
Huge shout outs to u 💐💐🌸
Thank you! Cheers!
Does money in a FHSA accrue interest?
It depends on where you invest the money within the FHSA. The FHSA itself is just like a pot with tax advantages. The returns you get will depend on the particular investment products you invest it in, e.g. if you put the money in GICs, you get a fixed interest, if in stocks, appreciation (growth) and sometimes dividends.
Watching fron Brasil =D
Welcome to the channel!🇧🇷🇨🇦
better buy physical gold and silver and hold on to them
Definitely better than leaving money in a checking account. Holding physical metals has it's challenges though.
With that take home salary, I cant even pay my rent, haha! Lower mainland is crazyyyyy!
We must by an RV with solar power
That's right, it can only work for people splitting rent, staying at their parents home, or if they're still benefiting from an old cheap rent contract. For people renting as and individual in 2024, it's impossible.
60K PROBABLY MORE THAN 9,500 IN TAX. IS IT
This is the girl that say if you earned 300000 CAD per year, you are poor 😂
You did not account Federal Taxes
They are included in the turbotax estimation
Toronto and vancouver people 😳😳
Fastest way to become a wealthy Canadian. Leave Canada
$2000 for all basic needs? $2000 basically just rent now-a-days.
The universe is trying to tell you something.
tis valuable information! thank you for sharing.
John 3:16-18
King James Version
16 For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.
17 For God sent not his Son into the world to condemn the world; but that the world through him might be saved.
18 He that believeth on him is not condemned: but he that believeth not is condemned already, because he hath not believed in the name of the only begotten Son of God.
Rayday Poutine
The taxation calculation in this video is very far off and makes the earning potential in Canada seem way more attractive than it is. Income taxes are extremely high here folks, I don’t recommend it.
See my pinned comments, there CPI and EI is included
❤❤❤❤❤❤❤❤❤❤
❤❤❤
Unrealistic in Vancouver
Unrealistic
Hey, I pass by your videos from time to time. I love your advice, I wish you could guide me with a few little things along the lines of wealthsimple. But it's crazy when I started with them it started at 5% and now it's down to 3.25. I guess it's better than nothing right.
Thanks! Planning to do a video on Wealthsimple!