photo illustration by the globe and mail/iStockPhoto / Getty Images
Name, age: Calathea, 35
Annual income: $28,743.12 from long-term disability payments, $900 from renting out parking space
Debt: $168,000 loan for home purchase, $3,600 to Canada Revenue Agency (CRA)
Savings: $900 in savings accounts, $3,746.85 in tax-free savings account (TFSA)
What they do: Mental health worker
Where they live: Hamilton, Ont.
Top financial concern: “I’m in this transitional period where I’m going from long-term disability to potentially [the Ontario Disability Support Program] and I need to know that my drugs are covered.”
Calathea went on long-term disability (LTD) from their job at a hospital nearly two years ago for mental-health reasons. That was through their employee benefits and meant a reduction in income, to 70 per cent of their salary.
“I am really good at budgeting, so it wasn’t terrible,” said the 35-year-old Hamiltonian, who identifies as gender non-conforming or trans. The reduction in income did lead them to start using a food bank, though.
Their benefits term ends later this summer. They are actively searching for a new job, but despite a good education – including a university degree and a college diploma – and good work experience, they aren’t having much luck.
“I’m at a point now where I need to get a job and I need to get whatever I can get,” they said, noting they were hoping to find something meaningful, where they would be helping others. “There’s a part of me that wants to serve, and I don’t mean a double-double.”
There’s also the question of benefits. Calathea lives with several mental-health diagnoses – bipolar disorder type one, borderline personality disorder and generalized anxiety disorder – and counts on their benefits to pay for their medication, which is crucial to their well-being.
“It’s catastrophic if I don’t take my medication,” they said, describing times when they lived on the street and exhausted their savings during manic episodes. “I need to know that my drugs are covered.”
Calathea tried applying for the Ontario Disability Support Program (ODSP) to make sure drug coverage will be in place when their LTD benefits end, but was declined because they are not currently without coverage. That leaves them worrying about what will happen if there’s a coverage gap. They are considering asking their parents for help – something they’d rather not do if they can avoid it. “I don’t ask for help often. I try to be as independent as possible.”
Their parents also help them in other ways, taking out a line of credit – which Calathea is paying back – to help them buy a unit in a housing co-op. With the jump in interest rates in recent years, their parents are paying $100 more in interest, which Calathea couldn’t afford.
Despite the financial rebalancing act necessary when the cost of anything goes up, Calathea is proud of their financial successes and frugal lifestyle. They owned property with a previous partner, and when the couple broke up and sold the house, Calathea ended up with $100,000 in addition to being able to pay off their student loan. That money went toward buying the co-op unit, alongside the loan from their parents.
“This place that I currently live in, it’s perfect. I love it,” said Calathea, who does not carry a balance on their credit card. “I am really proud of living within my means, so much that I help my friends with their budgets.”
Their typical monthly expenses:
Investment and savings: $60
$50 to savings accounts. “I have a couple of accounts. One is for saving for new winter boots.”
$10 to TFSA. “For retirement.”
Servicing debt: $761
$751 to line of credit payment. “My parents took out a line of credit when I bought my place, and I pay them.”
$10 to CRA debt. “I think I got dinged for [the Canada Emergency Response Benefit]. I am not sure.”
Household and transportation: $997.30
$584 to co-op fees. “It works like a condo.”
$18.46 to property insurance
$60 on utilities
$75 on renovations
$50 on transit
$20 on Uber. “Trips to kayak at Bayfront.”
$122.04 on cellphone
$67.80 on internet
Food and drink: $440
$400 on groceries. “Plus the food bank once a month. I go to the one for trans people.”
$10 at coffee shops
$30 at restaurants
Miscellaneous: $203.38
$0 going out. “I go to free events.”
$0 on alcohol
$40 on cannabis
$18.63 on Netflix
$32.60 on gym membership
$29.86 on haircuts. “Includes a $5 tip.”
$9 on cosmetics. “Moisturizer and sunscreen.”
$12.42 on Spotify
$60.87 on dental and medical benefits. “Glasses are covered every two years. I already got my glasses and my vision has changed.”
Some details may be changed to protect the privacy of the person profiled. We want to thank them for sharing their story. Are you a millennial or Gen Z who would like to participate in a Paycheque Project? Send us an e-mail.
