Now, here is the part of the financial success story where you learn about how the subjects lived rent free and also got a “modest” inheritance to get them on their way…
Okay, nothing quite as dramatic. But, I am very privileged and am at a much better starting point than most people my age, and most people who are facing the end of their marriage. Here is where I stand starting off:
- I have a high income. It doesn’t seem like enough for Toronto, but it is:
- just over twice the median individual income in Canada,
- a few thousand over the median household income in Canada,
- about at the median household income for Ontario,
- 115% the median household income for Toronto.
- I have excellent health insurance. On top of the provincial health plan, my employer covers 100% drug and dental. I need to pay part of the dispensing fees and costs over last year’s fee guidelines, but that’s just a few dollars a year. It is 100% employer paid, i.e. free to me.
- I have a defined benefit pension plan, with matched employer contributions.
- I have no debt. I paid off about $35 000 in my student loans in about 6 years, thanks to my high income and having someone who made about the same as part of the household.
- I have about 2 months of expenses (bare minimum) in savings. If you use YNAB*, I can explain that my money is about 60 days old. For every one else: I am living off income from two months ago
- I have access to credit. A financial emergency beyond the savings mentioned above would be expensive, but I wouldn’t need to mess with predatory things like payday loans to get by.
- I have a bike. Okay, two bikes.
- I work 35 hours a week, and commute about 4 hours per week. I have the luxury of free time which I can spend instead of money.
- I have a safe home where I can practice money saving techniques.
Being poor is expensive. I am not poor. I am not sharing my story to fuel the idea of pulling yourself up by the bootstraps. That concept is bullshit, anyhow.
*This is a referral link. If you subscribe using this link we will each get a free month of the software. Neat!