Payday Routine in Canada: Follow these 6 steps to become wealthy!

[@LivinginCanada]

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.

[@JayB-JayB]

Awesome always.😊❤ I've found following a ROUTINE in all aspects of life can't help but generate success 😊

[@LivinginCanada]

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!

[@JayB-JayB]

​​@@LivinginCanada😂👍

[@user_j_9one]

Subscribed. Simple, comprehensive and str8 to the point

[@LivinginCanada]

Welcome to the channel!

[@fab_sr5227]

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 ☘😄

[@TrueRay17]

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

[@seethruhead7119]

if you're not using an rrsp you are flushing money down the toilet it would be absolutely non-sensical to avoid rrsp

[@maguito000]

Could you share those horror stories about rrsp?

[@2abalsys]

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. :)

[@ZeroIsEven]

@@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.

[@tonyp9313]

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.

[@Prioridigitalstudio]

Love how simple and real your video feels! It's so refreshing 😊

[@LivinginCanada]

Thanks so much 😊

[@Bipbapbop_]

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.

[@LivinginCanada]

That's awesome!

[@dchang1983]

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.

[@AMindInOverdrive]

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

[@miguelviau3163]

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!

[@LivinginCanada]

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!

[@TheBohemianStyle]

In Toronto, housing is 75% of my income. None of this is possible.

[@LivinginCanada]

It is extremely difficult in Toronto. The only way is to either earn more or push the rent down by splitting it.

[@TheBohemianStyle]

@ Not possible for me.

[@mrs.natashaellwood8634]

Possible to come it KWC region and commute? We are in the process of expanding the train to connect with Toronto

[@SoulPapiii]

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

[@Abul-ov1zl]

Hey what’s your name!!

[@Mike-bo9ne]

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 🎉

[@LivinginCanada]

Sounds like a great plan!!

[@Lls967]

Great video ❤ Thank you!!!

[@moraa_rioba]

To the point and comprehensive, thank you!

[@LivinginCanada]

Glad to hear, thanks!

[@botcrack]

sweet, lemme try....K I paid my bills and now all I have to do is dance on the street for food!

[@007Vixenful]

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!

[@LivinginCanada]

Wow, great you get that done on top of your day job! Even better that you enjoy the process :)

[@SatifyingVideos-uk6df]

Am I the only one who lives in toronto and doesn’t earn 60k 😢

[@aliyajohn5818]

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!

[@LivinginCanada]

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

[@aliyajohn5818]

Thank you so much for your thoughtful input !! I will definitely do some digging on the methods you’ve mentioned 😊.

[@TheMizz220]

Great information and advice to become financially healthy. Thank you!

[@LivinginCanada]

Glad this was useful!

[@Sarah-y5w]

Thanks hun❤❤❤❤🎉🎉🎉

[@HeroDefi]

The real question is who's making $4200 a month in Canada...?

[@tonyp9313]

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.

[@EnchantedStringsToronto]

According to Statistisca, 55.3% of Canadians make 60k and over...

[@StormGod-X]

In LIUNA 183 you could make $3,500 - $4,000 or more. But you're gonna work like a dog for it. Lol

[@Sumire-rere]

An $80k salary before tax

[@jutperry]

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!

[@LivinginCanada]

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!

[@tekunji9884]

Lovely insights!❤

[@LivinginCanada]

Thanks as always🤩

[@Deem57]

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?

[@shanesmith5917]

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?

[@Eva-nj2ud]

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.

[@LivinginCanada]

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.

[@thursmornsunlight]

Well. Gives me a thought about this. Though I wish I had $5K for every paycheque.

[@LivinginCanada]

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!

[@samid7171]

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?

[@LivinginCanada]

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!

[@varunraimalhi3893]

Very informative Huge shout outs to u 💐💐🌸

[@LivinginCanada]

Thank you! Cheers!

[@thilokasapugasthanna7059]

‘Put part of your paycheque to FHSA to avoid tax’ means the paycheque you get after deducting the taxes?

[@LivinginCanada]

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)

[@vancouverdiaries738]

With that take home salary, I cant even pay my rent, haha! Lower mainland is crazyyyyy!

[@The_real_Toddington]

We must by an RV with solar power

[@LivinginCanada]

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.

[@surprisek3918]

From an employers perspective, why would they offer RRSP matching?

[@LivinginCanada]

It's a benefit that attracts employees (in addition to base salary, paid leave, insurance, etc.)

[@lipefranca2957]

Watching fron Brasil =D

[@LivinginCanada]

Welcome to the channel!🇧🇷🇨🇦

[@sergiojaramillo-e2g]

better buy physical gold and silver and hold on to them

[@LivinginCanada]

Definitely better than leaving money in a checking account. Holding physical metals has it's challenges though.

[@LaceyHayward]

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?

[@LivinginCanada]

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!

[@ucheuwah5729]

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.

[@LivinginCanada]

The example is only an estimation. In reality there are different factors that flow into the tax calculations (e.g. deductions)

[@slimdouglas618]

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. 😢

[@cesaraugustop]

This is the girl that say if you earned 300000 CAD per year, you are poor 😂

[@troyandapivonia7934]

Interesting, where is the money for kids shoes and winter clothes for all family, not speaking about birthdays

[@LivinginCanada]

It's not easy to find opportunities in a difficult place, but I would keep on searching!

[@timh1187]

Fastest way to become a wealthy Canadian. Leave Canada

[@TheLexiconKing]

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.

[@chiagozieoyeka6250]

Does money in a FHSA accrue interest?

[@LivinginCanada]

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.

[@humvnerr0r844]

Toronto and vancouver people 😳😳

[@goodfuture9839]

❤❤❤❤❤❤❤❤❤❤

[@yiulambb]

60K PROBABLY MORE THAN 9,500 IN TAX. IS IT

[@RENEDU2]

The universe is trying to tell you something.

[@ankit7dabral]

You did not account Federal Taxes

[@LivinginCanada]

They are included in the turbotax estimation

[@je5terc0re]

Rayday Poutine

[@matthewsemenuk8953]

$2000 for all basic needs? $2000 basically just rent now-a-days.

[@nayj6115]

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.

[@LivinginCanada]

See my pinned comments, there CPI and EI is included

[@ChrisKay1M]

❤❤❤

[@LarryNg-mx8qz]

Unrealistic in Vancouver

[@troyandapivonia7934]

Unrealistic

[@The_real_Toddington]

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.

[@LivinginCanada]

Thanks! Planning to do a video on Wealthsimple!