After I wrote the last post on living paycheque to paycheque, I opened up the floors to the readers and their opinions. While I expected there to be a discussion, I didn’t expect the debate to be so heated. One thing I learned from some of the comments is that I did not account for people who really “need” to live paycheque to paycheque. That is something that I overlooked as the people around me mostly make relatively high salaries but many live well beyond their means. While it is their choice to live the way they wish, I believe that everyone should take responsibility for their actions.
Another reader suggested that I create a poll for the readers here at MDJ because he suspects that the incomes are higher than the average Canadian family. The poll below is completely anonymous, but will give us a good idea of reader salary range and savings rate.
The poll options are fairly lengthy, but should be intuitive. Simply pick your salary range with the corresponding savings rate on your gross income. I’ll leave it up to you whether you use family or individual income. Personally, I combine my finances with that of my spouse so I would add up our gross family income and determine the savings rate on that income. What’s considered savings? I like to keep things simple, so I simply add up my contributions to RRSP, TFSA, non-reg, mortgage prepayments, and/or transfers to high interest rate savings in a year.
For example, if our gross family income is $120k and we saved (as per definition above) $20k over the year (or $1.67k/mo) , then our savings rate would be (20/120)x100 = 17%.
Please take a second and vote below. If you can’t see the poll below, please click here to vote.
Thanks for participating in the anonymous poll!