How good is a salary of $ 85,000 to $ 90,000 in Canada?

Updated on : December 7, 2021 by Martin Mosley



How good is a salary of $ 85,000 to $ 90,000 in Canada?

A salary of $ 85 to $ 90 thousand is above average for an individual, average for a family, and below average for a manager in the construction industry, worker in the healthcare industry, and workers in the construction industry. oil and gas and mining. This salary places an individual and / or a small family directly in the middle class of working Canadians.

Rental Cost: August 2017 Canadian Rental Report

Unfortunately, rental inflation has made it more expensive to live in Canada's biggest cities: 1 bedroom in Vancouver now costs around $ 2,000 CAD and $ 3,200 for a two-bedroom, per month and before utilities .

Taxes are also very heavy b

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A salary of $ 85 to $ 90 thousand is above average for an individual, average for a family, and below average for a manager in the construction industry, worker in the healthcare industry, and workers in the construction industry. oil and gas and mining. This salary places an individual and / or a small family directly in the middle class of working Canadians.

Rental Cost: August 2017 Canadian Rental Report

Unfortunately, rental inflation has made it more expensive to live in Canada's biggest cities: 1 bedroom in Vancouver now costs around $ 2,000 CAD and $ 3,200 for a two-bedroom, per month and before utilities .

Taxes are also a very heavy burden for Canadians, as other commenters have noted "In 2017, the average Canadian family will earn $ 108,674 in income and pay a total of $ 47,135 in taxes (43.4%)" Canadians celebrate Easter Day. Fiscal Freedom on June 9, 2017

If the salary of $ 85 to $ 90K is added to a good retirement or pension benefits program (such as a public service job), as well as a supplemental health care plan, then you will do well and live comfortably in good clothes , a new vehicle, and the ability to have discretionary spending / savings of a few thousand dollars per month.

If you have to fund your retirement and pay for dental / vision / prescription drug coverage out of pocket, you will still have enough money to cover all your basic expenses and most of the extras to live a comfortable life, but you will be challenged to :

  • Retire before 65
  • Travel internationally for 10 days more than once a year
  • Buy a home near Toronto or Vancouver or the surrounding suburbs
  • You have more than 2 children (unless you live in Quebec, where education and childcare costs are subsidized)
  • Having a spouse who stays at home and does not work

Also, if you live in the Northwest Territories or near Wood Buffalo Alberta, it is difficult to live on a salary less than $ 100,000 due to the higher cost of living.

Canadians celebrate Fiscal Freedom Day on June 9, 2017

Summary

  • In 2017, the average Canadian family will earn $ 108,674 in income and pay a total of $ 47,135 in taxes (43.4%).
  • If the average Canadian family had to pay their total tax bill of $ 47,135 in advance, they would have worked until June 8 to pay the total tax bill imposed on them by the three levels of government (federal, provincial and local).
  • This means that in 2017, the average Canadian family will celebrate Fiscal Freedom Day on June 9.
  • Fiscal Freedom Day in 2017 comes a day later than in 2016, when it fell on Ju
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Canadians celebrate Fiscal Freedom Day on June 9, 2017

Summary

  • In 2017, the average Canadian family will earn $ 108,674 in income and pay a total of $ 47,135 in taxes (43.4%).
  • If the average Canadian family had to pay their total tax bill of $ 47,135 in advance, they would have worked until June 8 to pay the total tax bill imposed on them by the three levels of government (federal, provincial and local).
  • This means that in 2017, the average Canadian family will celebrate Fiscal Freedom Day on June 9.
  • Tax Freedom Day in 2017 comes a day later than in 2016, when it fell on June 8, because the total tax bill for the average Canadian family is expected to increase at a faster rate this year (2.4%) than the revenue growth (2.2%). ).
  • The Tax Freedom Day for each province varies according to the scope of the tax burden collected by the provinces. The first provincial Fiscal Freedom Day falls on May 21 in Alberta, while the last falls on June 25 in Newfoundland and Labrador.
  • Canada's Balanced Budget Tax Freedom Day arrives June 18. In other words, if governments had to raise taxes to balance their budgets rather than finance deficit spending, Tax Freedom Day would come 9 days later.

($ 85,000 to $ 90,000)

  • Half of this supposed income that you won't see goes in taxes.
  • And rest, do the math. Are you single or do you have a family of four?
  • Where will you live? Toronto? Vancouver? Montreal?
  • You will soon find out, paradise is very expensive.
  • My wife and I have been in this country for several decades and have yet to find the money tree.
  • People who come from other countries forget, here you only work five days, which is only 20 days a month, but you eat and live 10 to 11 more days in a month.
  • It also depends on the lifestyle, if the Scottish blue label, a pack of cigarettes and 12 beers a day is part of the diet. This money would not go very far.
  • For a frugal person / family, they can survive well.

NB:

  • I have seen some "snack oil salesmen", and also who have not lived in Canada a day, they have been giving advice on Canada, some very pink pictures and some unfortunate pictures. I guess it depends on the singer and their experiences. Try to get advice from the right sources.

$ 90,000 a year, after taxes and CPP / EI contributions, equals $ 5,700 a month in Ontario. This will give you:

  • Two bedroom condo in downtown Toronto, with full services, TV and cell phone service ($ 3,000)
  • A good BMW or Audi sedan ($ 1,000 after insurance)
  • High-quality food ($ 400)
  • Solid Contributions to Retirement Savings Plan ($ 300)

And you still have a thousand dollars left each month for other things.

Also note that at this pay rate, you will maximize your CPP / EI contributions for the year in August, so your take-home pay will increase later in the year by roughly $ 500 / month.

90K is the top 10% salary in Canada overall according to Statscan 2017. It would drop to a top 20 ~ 30% in a prairie state like AB (but who the hell wants to live there anyway), but on average 90K is upper middle class income. for a single person (NOT as a combined household)

I assure you, this is more than enough to comfortably live a single life in Toronto. You can attend classical concerts, sporting events, etc. every weekend and travel to New York or Chicago several times a year and still maximize RRSP (401K), TFSA (Roth IRA). Also, if you include bonds and stock options like me, it would be a

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90K is the top 10% salary in Canada overall according to Statscan 2017. It would drop to a top 20 ~ 30% in a prairie state like AB (but who the hell wants to live there anyway), but on average 90K is upper middle class income. for a single person (NOT as a combined household)

I assure you, this is more than enough to comfortably live a single life in Toronto. You can attend classical concerts, sporting events, etc. every weekend and travel to New York or Chicago several times a year and still maximize RRSP (401K), TFSA (Roth IRA). Also, if you include bonds and stock options like me, it would be another gift at the end of the year.

You can search online currency converters to find out the value of your currency. It is up to 60,000 US dollars.

As a single person, you could live well in the Prairies area in this rental home.

In general, Canadian wages are on par with those of the United States. An exception could be doctors. Canadian doctors do not practice to get rich in Canada. They earn less.

Some salaries are better in Canada. I find that true in my field.

Which province? In general it is a great salary.

So let's do some math.

If you earn $ 75,000 a year living in the province of Ontario, Canada, you will have to pay taxes of $ 18,950. That means your take home pay will be $ 56,050 per year or $ 4,671 per month. Its average tax rate is 25.27% and its marginal tax rate is 30.54%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For example, a $ 100 increase in your salary will be taxed at $ 30.54; therefore, your take-home pay will only increase by $ 69.46.

Salary - $ 75,000

Federal tax deduction - $ 10,344

Provincial Tax Deduction - $ 5,154

CPP deductions - $ 2,594

EI deductions - $

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So let's do some math.

If you earn $ 75,000 a year living in the province of Ontario, Canada, you will have to pay taxes of $ 18,950. That means your take home pay will be $ 56,050 per year or $ 4,671 per month. Its average tax rate is 25.27% and its marginal tax rate is 30.54%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For example, a $ 100 increase in your salary will be taxed at $ 30.54; therefore, your take-home pay will only increase by $ 69.46.

Salary - $ 75,000

Federal tax deduction - $ 10,344

Provincial Tax Deduction - $ 5,154

CPP deductions - $ 2,594

EI deductions - $ 858

Total taxes - $ 18,950

Net payment * $ 56,050

Marginal tax rate 30.54%

Average tax rate 25.27%

Source: $ 75,000 【Income Tax Calculator】 Ontario

Expenses

So after all taxes, you're making $ 4,671 per month.

Rent for a 2-bedroom house, on average: the highest, say $ 2,000. If you opt for a basement, $ 1,000 to $ 1,500.

You still have $ 2,671 left. Don't you think you can afford to live on that amount?

You won't be at $ 75K forever. I am sure it will increase your skills to earn more.

Average monthly expenses:

  • Phone: $ 100 (you can get a line for $ 15 to $ 30) or use Fongo for free
  • Internet: $ 100 (you can get Internet access for $ 25 to $ 50)
  • Car insurance - $ 250 approx. (more than this, think about taking TTC, aka public transportation)
  • Groceries - $ 500 (okay, what the heck are you eating :))
  • Hydro aka Electricity and Water - $ 300 (may already be included in rent)
  • Entertainment: $ 200 to $ 300 (really :)) save that money to improve your skills to earn more ...
  • Clothes - $ 200 to $ 300 (may come from variable expenses) - I'm sure you won't be buying clothes every month.
  • Gasoline - $ 300

Total Approx. $ 2150.

That means you have approximately $ 500 left. You can easily save from entertainment and clothing budgets.

Used car - Mercedes Benz s500 model 2002 to 2005 - $ 4,000 one-time fee. I bought one for $ 4500 and have been driving it for 4.5 years. (Updated) This is an example of how luxury can drive. You can get an $ 8k car that is just as good.

If you have children who need special care, life can be challenging.

Do you want more money? Get a part-time job or make your wife work.

$ 75K is fine. You need to find out what kind of lifestyle you need or want to live that way.

There are millions who earn less than $ 75,000 and live a decent life.

Most people who feel that $ 75,000 is not enough for two adults and one child usually invest too much in their lives.

They may have a $ 700K mortgage that they cannot afford. They buy a new car for $ 25K when they can get a cheap Benz for $ 4K.

They start renovating their basement, hoping to rent it out, and end up taking out loans and running up debt.

Keep your expenses moderate, live a decent lifestyle. Train your wife or partner in a skill. Double your income.

I earn over $ 150K + but pay rent of $ 850 for a studio apartment in a very old building. I drive a 2001 Mercedes Benz s500 that I bought for $ 4500, a one-time fee in 2013, and I still drive it. I travel the world 8 to 12 times a year (70% because of my job and 30% because I love to travel).

I work 6 months a year and travel the other 6 months.

Friend 1

My friend, an IT engineer, earns $ 95K and has a $ 750K + mortgage and a $ 35K Honda car. He can't afford to take a vacation and constantly complains that he can't save. But he will not accept a part-time job.

Friend 2

He has a Cisco Networking job for $ 55 an hour on an 18-month contract. He bought a house for $ 850K. His rent, which was $ 1,300 when he rented, suddenly turned into a $ 4100 mortgage. Sixteen months after his lease (three months after buying the house with a $ 100,000 down payment), he lost the lease. He was out of work for three months and ended up in debt of $ 50K because he was managing his home with savings and credit.

You recently got another job at the same bank for $ 65 an hour, but you are starting a new career with $ 50,000 to $ 70,000 in debt.

Why? Because you didn't plan correctly.

So plan correctly. Keep your expenses low. Before you buy a home, keep your six-month salary in reserve and then save money for your down payment.

INVEST INVEST INVEST IN YOUR SKILLS, not in a car or in your home. Your skills will increase your salary between 20% and 30%.

If you make $ 75K, you should be living on a $ 50K budget.

You'll be fine. Good luck!

I earn more money than my two friends put together, but I choose to live low-key. In the end, it depends on how you want to live and what kind of lifestyle you want.

Updated August 23, 2018

People comment that I didn't consider RRSP, mutual funds, children's education, or retirement.

You can't order Moon for $ 75K. You want all of this, get a second job or increase your value and earn between $ 100,000 and $ 200,000. Stop dreaming of getting to the moon with $ 75k.

$ 75K is not good for those who think that life is only good in downtown Toronto or if the building is not a condo, it is not habitable and they do not consider a place to live. Scarborough is also part of Toronto, as is North York.

You now have a $ 75K job, focus on increasing it to $ 100K by investing in your knowledge first while learning to live within your means.

Few people mention where in Toronto you can find 2-bedroom apartment rentals; it may not be your preferred location.

I also want to correct that I assumed that only the husband worked, but I could combine the income and it could easily just be the wife working as well.

This is the reality in Canada, a recession is imminent and financial insolvencies / bankruptcies will rise to the highest level. Rest assured that the storm is on its way and will linger for a long time.

This bubble economy, a poorly managed country, where there is an enormous amount of waste, fraud, insurance fraud / unemployment fraud / workers compensation fraud / immigration fraud / list goes on and on.

Once a very powerful country, now it is going to another Greece, it is a matter of time.

Read on and wait for the storm, it's just the beginning where 50 are already financially insolvent.

Yes, indee

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This is the reality in Canada, a recession is imminent and financial insolvencies / bankruptcies will rise to the highest level. Rest assured that the storm is on its way and will linger for a long time.

This bubble economy, a poorly managed country, where there is an enormous amount of waste, fraud, insurance fraud / unemployment fraud / workers compensation fraud / immigration fraud / list goes on and on.

Once a very powerful country, now it is going to another Greece, it is a matter of time.

Read on and wait for the storm, it's just the beginning where 50 are already financially insolvent.

Yes indeed, a large population lives from paycheck to paycheck,

  • False lifestyles, a hollow society, which was designed to live for the moment, in essence, a very selfish / self-gratifying society, revolves mainly about ME ME and More ME.
  • Banging your chest and living in false glory, leased cars, fancy dinners, loan vacations, fancy coffee shops, live shows, alcohol, marijuana, drugs,
  • I don't understand basic money management.
  • The wrong mindset, the young generation knows that most of them cannot survive in this new Canada, where there are no well-paid unions protected with rich benefits. He might as well live for today and sink the ship.
  • Why not: Canada gave Karla Homolka and Paul Bernardo a chance, why not financially bankrupt will have another chance and one more chance OMG, another chance.
  • Some people in some communities are experts in this game, a carpet store goes bankrupt and a new name appears in the same location, the same owner but the name of the company is different.
  • Extremely poorly managed country, full of system fraud, scams and deception.
  • No matter the people, the country itself will eventually be ruined, it is coming.

Here's the proof, false lifestyles will be a thing of the past, from writing nine million checks to a terrorist and murder.

Spending $ 100 million on investigations, prosecuting those responsible for the bombing of Air India Flight 182, they hatched, executed in Canada and killed 329, mostly Indo-Canadians.

All of these expenses will show up on the balance sheets and they will borrow more money to stay afloat.

Some high-level Canadians always deny it, usually citing statistics, and have almost zero knowledge of statistics. Some of the graphics and all the flower things are done and feel good.

The fundamental reality is that most people are simply broke.

More Canadians are filing for bankruptcy than we have seen since the financial crisis. What's the matter? | The star

By Josh Rubin Business Reporter

Thursday, January 2, 2020

timer 3 min. read

Half (48%) of Canadians are less than $ 200 a month from being financially insolvent

Toronto, ON - Nearly half (48%) of Canadians are within $ 200 or less per month of not being able to meet all of their bills or debt obligations each month, including 26% who say they no longer make enough money to cover your bills and debt payments, according to a new Ipsos survey conducted on behalf of MNP.

Ontario residents (29%) and Quebec (29%) are more likely to say they no longer earn enough to cover their bills and debt payments, followed by those living in Atlantic Canada (24%), Alberta ( 21%), British Columbia (19%) and Saskatchewan and Manitoba (17%).

Also, it will take Canadians some time to get out of the non-mortgage debt they have accumulated, and the average Canadian with debt says it will be about 7 years before they are debt free, completely ignoring the 15% who believe they will never be. debt free.

Those most likely to say they will never be debt free are Atlantic Canadians (28%), followed far behind by Saskatchewan and Manitoba (17%), Alberta (16%), BC (15%), Ontario ( 15%) and Quebec (10%).

Among those who think they will be able to get out of debt, Ontario residents will need the longest (8 years on average), followed by Quebec (7 years), Atlantic Canada (6 years), BC (6 years) ). , Alberta (6 years) and Saskatchewan and Manitoba (5 years).

Residents of British Columbia (50%) and Quebec (45%) are already most likely to be debt-free, followed by those living in Alberta (39%), Ontario (38%), Saskatchewan and Manitoba (37%). ) and Atlantic. Canada (31%).

Given the amount of debt Canadians have and the time it will take for many of them to pay off their outstanding debts, it is interesting to note that four out of ten (43%) agree (17% strongly / 27% somewhat) that They regret the amount of debt they have incurred in their lifetime. A similar proportion (43%) agree (15% strongly / 28% somewhat) that they are concerned about their current level of debt.

On a positive note is that a relatively small proportion of the population seems more relaxed in their attitudes towards debt: only one in three (32%) agree (6% strongly / 26% somewhat) that debt is not a A big problem for them, it is just a fact of life, while the vast majority (68%) of Canadians "disagree" (36% strongly / 32% somewhat).

Looking ahead in 2016 ...

Interest rates are attracting a lot of attention recently, given the soaring interest rates in Canada. However, interest rates will eventually rise, and many Canadians (31%) "agree" (9% strongly / 22% somewhat) that rising interest rates could bankrupt them. Furthermore, three in ten (28%) "agree" (7% strongly / 21% somewhat) that things are so tight that they anticipate the need to go into debt to pay for regular household expenses in 2016.

Given the research findings, it is not surprising that two out of three (64%) "agree" (25% strongly / 39% somewhat) that paying off debt is their number one financial goal, rather than saving, spending. or other priorities. . In fact, more generally, eight in ten (82%) "agree" (33 %% strongly / 49% somewhat) that paying off debt is more important financially than saving.

Looking for help in managing their debt responsibilities, almost two in ten (16%) "agree" (4% strongly / 12% somewhat) that this year they plan to seek information or consult a professional about financial insolvency or bankruptcy. led by Albertans (21%).

Understanding Insolvency and Bankruptcy ...

When it comes to the terms insolvency and bankruptcy, Canadians appear not to be as solid in their knowledge as they could be: six out of ten (60%) "agree" (21%) strongly / 39% somewhat) that they know the differences between insolvency and bankruptcy, while four out of ten (40%) "disagree" (15% strongly / 25% somewhat), admitting that they are not aware of the difference.

Furthermore, many are unaware of the resources available to them, as only a small majority (55%) `` agree '' (16% strongly / 40% somewhat) that they would know where to turn if they became financially insolvent, while almost half (45%) "disagree" (20% strongly / 25% somewhat).

Despite some gaps in their knowledge, four in ten (43%) Canadians `` agree '' (17% strongly / 26% somewhat) that they personally know someone who has declared insolvent, with Quebecers (51 %) and Atlantic Canadians (47%) being more likely than those from Ontario (42%), Saskatchewan and Manitoba (40%), Alberta (40%) and British Columbia (37%) to say so. For more information on MNP, visit One in three Canadians feel that rising interest rates could bankrupt them

These are some of the findings of an Ipsos Reid survey conducted between January 26 and 29, 2016, on behalf of MNP. For this survey, a sample of 1,582 Canadians from the Ipsos online panel were interviewed online. Weighting was then used to balance demographics to ensure that the sample composition reflects that of the adult population based on census data and to provide results intended to approximate the sample universe. The accuracy of Ipsos online surveys is measured by a credibility interval. In this case, the survey is accurate to +/- 2.8 percentage points, 19 times out of 20, if all Canadian adults had been surveyed. The credibility interval will be wider among subsets of the population.

For more information on this press release, please contact:

Sean Simpson

Vice president

Ipsos Public Affairs

416.324.2002

sean.simpson@ipsos.com

Canada is doomed under Trudeau and headed for recession, says Kevin O'Leary

Meet Canadians struggling to survive on a part-time job and low wages. See the full report here: ...

Canadian working poor

0:36 / 2:37

Video: Most Canadians Live from Pay to Pay

The statistician produces very good and very gloomy graphs, depending on your audience.

Any average-based chart feels good, for the general public you dig into what it means and then discover that it is nothing more than skewed and misleading data in a nice picture.

The table below is a load of crap for ordinary people who cannot understand the sneaky method of showing the green side of the rotten farm.

The average does not mean anything, for example, two neighbors on the street, one has zero and the second has 150,000 and the third is in debt, say 40,000, an astute statistician will show that the average income of this street is 0 + 150,000–40,000 / 3 is 40000,

My answer is = BS

One is broke, one is living day to day and the other is fine, so this street is a mix, between a flat, broken to the middle class. This average no of 40,000 is from financial insolvent to lower middle class.

I know how to muddy water with sophisticated graphics, I have a reasonable knowledge of statistical analysis

Sam Arora, M.Sc. U of Punjab, India, M.Sc. U of Guelph, Canada,

Here is the highlight information that some Canadians are living the fantasy dream, don't worry, be happy.

This graph means that some people have accumulated enormous wealth, and when the other half are bankrupt, which means that although the average is a very nice picture, it does not show the dark side of the 50 percent who are bankrupt.

This type of data is made for political figures to vote or to mislead the public. I call graphics to feel good.

Anyway, this graph doesn't have any meaning, it just shows, the basic reality is that 50 have zero in their account, and the rest of the wealth is unevenly distributed.

AND

That's why: Basically, most Canadians work their entire lives and have nothing to show for it.

Why???

That is, people on the high end take the top layer of cream that rises over the milk and the rest of the cream thins out as it goes to the bottom of the glass. (This stratification occurs in non-homogenized milk). That is why the milk is homogenized to distribute the fat.

Feel Good Chart:

This graphic is misleading, it was made to mislead the public or let us say feel good, graphic, and people who know statistical science know this trick. I have also used these graphics depending on my audience,

This table is useless, it doesn't tell the real story:

This graph is a lot Horse Shi @ has no meaning, the law of averages fails / sinks many people.

Canada's Household Economy and Debt: How Big is the Problem?

Observations

Stephen S. Poloz - Governor

Yellowknife Chamber of Commerce

Yellowknife, Northwest Territories

May 1, 2018

Available as: PDF

IntroductionShakespeare wrote, “Neither a borrower nor a lender be.” Well, that may have been reasonable advice back in Hamlet’s day, but it is hard to imagine a modern economy like ours functioning under that dictum.For most Canadians debt is a fact of life, at least at some point. Borrowing can help someone get a higher education, or buy a new car, or purchase a home. Simply put, debt is a tool that allows people to smooth out their spending throughout their life.The amount of debt held by Canadian households has been rising for about 30 years, not just in absolute terms but also relative to the size of the economy. At the end of last year, Canadian households owed just over $2 trillion. Mortgages make up almost three-quarters of this debt.While debt is indispensable for our modern way of life, it has been a growing preoccupation for the Bank of Canada for several years now. That is because high debt levels can make us vulnerable to negative events—individuals as well the entire economy.There are two ways to look at this. Traditionally, our focus has been on the vulnerability of Canada’s financial system arising from elevated indebtedness. This means analyzing how our banks would manage a serious economic recession with high unemployment and increasing debt defaults. But the Bank is also focused on the vulnerability of our economy to rising interest rates, given high household debt. There is little doubt that the economy is more sensitive to higher interest rates today than it was in the past, and that global and domestic interest rates are on the http://rise.So, today I want to talk about household debt in Canada—the dynamics that led to its buildup, how big a problem it is for Canadians now, and how we can manage the risks in the years ahead.How did we get here?Two trillion dollars of debt is a big number. Let us try to put some context around it. A common way to measure household debt is to compare it with the amount of disposable income people have. In Canada’s case, household debt is around 170 per cent of disposable income. In other words, the average Canadian owes about $1.70 for every dollar of income he or she earns per year, after taxes.That ratio is a Canadian record, and up from about 100 per cent 20 years ago. Although this ratio is on the high side, other economies such as Sweden, Norway and Australia have even more household debt relative to disposable income.This international comparison reveals some common factors. Like Canada, the countries I just mentioned have all seen decades of steadily rising house prices. They all have high rates of homeownership and deep, well-developed mortgage markets. Like Canada, mortgages in Australia are typically amortized over 25 to 30 years. In Norway and Sweden, you can find mortgages where the homeowner is only making interest payments, and the principal is passed on from one generation to the next.Aspiring to own a home is part of our culture. It is also a way to build wealth for the future, as house prices have tended to rise faster than incomes. My colleague, Deputy Governor Larry Schembri, took an in-depth look at the drivers of house prices in a speech in 2015. He found many factors working on both supply and demand to push prices up.On the supply side, Canada is a highly urbanized country, and many of our cities have land-use constraints that limit supply, such as green belts and other zoning restrictions. Geography, in the form of mountains and water, also helps to limit supply and support prices.In terms of demand, several factors have reinforced an extended trend toward higher prices. These include demographics and a long period of low long-term interest rates. But the point I want to stress here is that when you combine a strong desire for homeownership with rising house prices, you will naturally find increasing levels of debt.

Canadians' mountain of household debt is rising again

Canadians’ mountain of household debt is rising again

canadian debt to income ratio 2019

canadian debt to income ratio 2019

  • A few other flimsy and weak systems: Health care workers, who are close to the system. They all know it is standing on the sand.
  • It is the myth that it is free, no sir, no madam, nothing is free, people who are working and paying taxes, ask any qualified accountant he/she will tell you how much of that tax goes to health care. Funny thing is whether you use it or not.
  • Education is not free: Ask any accountant he/she will tell you what are you paying for the education part whether you use or not.

Statistics 101 for intelligent people.

Disclaimer: Statistics 101, our boy-trapped in an adult body PM and his cronies would not understand a thing, about this curve.

Normal distribution /aka Bell shape curve.

bell shape normal distribution curve

bell shape normal distribution curve

In a perfect world this should be the distribution of wealth in Canada, as we know from ground reality, left half of the curve is flat broke.

In other words, wealth is unevenly distributed in rest of half, or skewed to the right.

This country is not standing on a solid ground/foundation, it means we have country, of haves and haves not.

In other words a country is made of Insanely rich, ultra rich, rich and upper middle class, middle class,

And rest 50 percent hand to mouth, because we know 50 percent are standing on sandy foundation.

And

It is not surprising, because that is what mismanaged, country riddled with frauds makes poor more poor and wealthy more wealthy.

That is why a contry with extremely heavy taxed population, insurance upon insurance, with no industrial base.

Writing cheques to terrorists, and cleaning the shit, brought by them, with extreme social burden of family violence, drugs, alchohol and frauds.

That is why Canada is moving towards similar situation like GREECE, where their Magician Statistician fooled the world.

Normal Distribution: Right and Left Skewed Graphs - Expii

If you can make $18/hour as a single person working full time, that’s a good salary. If you can earn an average of $60,000/year or $5000/month you will live a solid middle class lifestyle. If you have kids and a wife you’ll both need to earn $60,000/year to have a solid middle class life. 2 adults earning $60,000/year provides a monthly after tax income of approximately $7852, and that will be it..you’ll make too much money to qualify for any family allowance.

What is a middle class life? A comfortable 1200 square foot home built in the mid-market type of home from the 80's. 2 Certified Pre-Owned Vehicles (A dodge expensive

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If you can earn $ 18 an hour as a single person working full time, that's a good salary. If you can earn an average of $ 60,000 / year or $ 5,000 / month, you will live a solid middle-class lifestyle. If they have children and a wife, they will both need to earn $ 60,000 a year to have a solid middle-class life. 2 adults earning $ 60,000 / year provide a monthly after-tax income of approximately $ 7852, and that will be it ... you will earn too much money to qualify for any family allowance.

What’s a middle class life? a comfortable 1200/sqft home built in the 80’s mid market type home. 2 certified used vehicles (A dodge caravan 2 years old with 30,000kms for example). You can expect to go on a nice all inclusive vacation once a year, have comfortable money to spend…you can save for retirement and all the nice things the world thinks living in Canada entails.

If you’re a family making a combined total of $60,000 gross annual ($30,000 per adult) or less you won’t likely be able to afford a home in the city but very likely in a smaller town (1500 people or less). You can still find homes in the $50,000 range in these small towns but the trade off is you won’t likely find much in the way of good paying jobs. You won’t be driving NEW vehicles but likely used vehicles 4 years old or older with over 80,000kms. You won’t have money for carribean vacations but you’ll likely be able to get away to camp or something for a week in the summer. Your life won’t be comfortable and there will be times that you have trouble meeting your monthly payments. Your monthly family income after taxes will be approximately $3926/month and you can expect about $600/month in family allowance from the government if you have 2 kids.

If you earn a combined family income of more than $180,000 ($90,000 a year per adult) you will have a nice comfortable life provided you don’t over extend. You can afford a nice cabin at the lake (older cabin not the new mansions they’ve been building lately), a large new home ($500,000 range), 2 new vehicles of almost any type (Denali, SUV, etc) and you won’t need to worry too much about watching your pennies although you should. Your combined after tax income at this rate is $10,100/month and that will be all, you make too much for any other government subsidies.

If you don’t have a university education and if you don’t have a trade it is very unlikely that you will ever earn $60,000/year. Half of Canadians earn less than $35,000/year. $60,000/year is roughly $25-$30/hour which is a very rare wage for someone to earn without a degree or certification in a specific trade. Even Trades people won’t make $30 until they’ve completed their certification. 20 or 30 years ago a regular Joe out of high school could find a job at a factory and the union would see too it that they were making $20/$30/h in due time but that has all but ended and is definitely a thing of the past.

Do Not believe the statistics that the average Canadian earns $51,000/year. A very large majority of people make WELL below $51,000/year. I live in a city of 51,000 and the average wage is between $12.00 and $15.00/hour. Something to think about…If the average Canadian makes $51,000 why is there so much push back against a minimum wage of $15/hour? According to the statistics every Canadian already makes $24.50/hour ($51,000/year) so a minimum wage of $15/hour should almost seem like an arbitrary number. The reason of course if because MOST Canadians make less than $15/hour and make MUCH less than $51,000 year.

For what it’s worth…if you are looking at living in Toronto and Vancouver disregard my answer. Those 2 cities have artificially inflated housing markets fueled by international investments. There are entire floors of condo units in Vancouver that sit empty, purchased by Chinese investors and held to sell when the price increases. A friend of mine lives just outside of Vancouver and his neighbor sold his house for 1.2 million, the new owner tore it down and built a new one. 1.2 million dollars paid for a lot. I asked my buddy how he can afford to live somewhere like that and he said he bought his house 20 years ago for $150,000. That’s just to give you an idea why Toronto and Vancouver don’t apply to any general questions about Canadian expenses.

I live in Toronto, I’m single and 35, so I’m going to get pretty specific here.

Rent - 1 bedroom in a decent location - $ 1500 - if you are trying to buy a condo right now it will cost a lot more than this

Internet, home phone, laundry, hydro - $ 200 minimum

Transportation: $ 145 (ttc): $ 400 minimum if you are driving a car you already own, $ 800 minimum if you are currently renting or financing

Therefore, you are already burdened with fixed costs of at least $ 1850 and you have not fed or clothed yourself, you have not incorporated entertainment or vacations.

What many people outside the main cities may not know

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I live in Toronto, I'm single, and I'm 35 years old, so I'm going to be pretty specific here.

Rent - 1 bedroom in a decent location - $ 1500 - if you are trying to buy a condo right now it will cost a lot more than this

Internet, home phone, laundry, hydro - $ 200 minimum

Transportation: $ 145 (ttc): $ 400 minimum if you are driving a car you already own, $ 800 minimum if you are currently renting or financing

Therefore, you are already burdened with fixed costs of at least $ 1850 and you have not fed or clothed yourself, you have not incorporated entertainment or vacations.

What many people from outside the major cities may not know is how much more expensive even simple things like groceries are in Toronto. I personally don’t drive, so I can’t very well pop over to Mississauga or to Vaughan or something for reasonable prices. I’m stuck with the insanely overpriced Loblaws north of Yonge and Sheppard. I was at a grocery store in Hamilton a few weeks ago and after seeing the prices I felt like I’d been transported 10 years back in time.

Anyhow, average net income per month in Canada is $3200/month, which is an annual gross salary of about $52k. If this is what you’re earning, things will be tight, every month will require strict adherence to a budget in Toronto. Money will always be on your mind. I have lived off of this exact amount before and I was almost always carrying a credit card balance. (One time I cleared my balance and my computer gave me the BSOD the next day, but I digress.)

So that was a look at a pretty modest life in Toronto. If you want a decent condo, a decent car, and you like to wine and dine and all of that stuff, having a 6-figure income is an absolute must. Owning a condo in and of itself these days is going to require at least a $2000/month commitment, and that’s for very basic small places.

But hey, on the bright side, at least wages are completely stagnant.

I generally hate this kind of answer, but it depends on a couple of different factors.

  1. Definition of a reasonable life:
    1. Do you want to buy a house or an apartment is reasonable?
    2. Are you single or are you supporting a family?
    3. Do you have expensive hobbies or financial obligations (debt, etc.)?
  2. Location, location, location.
    1. Do you live in a city or in a rural area?
    2. In which province / city do you plan to live?

Without more specific information, a reasonable answer is difficult or impossible. In Canada, there are about 13 different and fairly discreet markets. They are separated by geography and have wildly

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I generally hate this kind of answer, but it depends on a couple of different factors.

  1. Definition of a reasonable life:
    1. Do you want to buy a house or an apartment is reasonable?
    2. Are you single or are you supporting a family?
    3. Do you have expensive hobbies or financial obligations (debt, etc.)?
  2. Location, location, location.
    1. Do you live in a city or in a rural area?
    2. In which province / city do you plan to live?

Sin información más específica, una respuesta razonable es difícil o imposible. En Canadá, hay alrededor de 13 mercados diferentes y bastante discretos. Están separados por la geografía y tienen costos de vida tremendamente diferentes.

In Alberta, your take home pay would be about $2,600 per month. I know that, in Edmonton, an reasonable one bedroom apartment in a reasonable neighbourhood will cost about $900 with another $200 for power, phone and TV/internet. That leaves you about $1,500 for food, transportation, entertainment and savings (not necessarily in that order). A single person could live pretty well on that as long as they are somewhat prudent.

A basic one bedroom apartment condo in Edmonton runs about 200,000 and the mortgage payment based on a 20 year amortization and low interest rates would be about 1,200 per month (plus taxes and condo fees). CMHC mortgage rules would not allow you to get a mortgage with a $40,000 income as it limits your payments to about 1/3 of your take home.

In Charlottetown, PEI, you could buy a house for $80,000 (Charlottetown, Prince Edward Island Real Estate and Homes For Sale) and you would be able to get a mortgage there, but is your job there? In Toronto, your rent would be $1,500 or more per month and you would have to live like a miser to get by.

Rural costs are lower but the number of jobs in a rural area is limited.

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Take home pay is based on this site:Tax Take Home Pay Calculator for 2015.xls

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