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Name, age: Alain, 40
Annual income: $58,000
Debt: $1,100 bank loan
Savings: $1,000 in savings account; $4,500 in TFSA
What he does: arts administrator
Where he lives: Toronto
Top financial concern: “I’m worried what I’ll be doing in the future. I’d love to have a little place in Toronto but I need to find a secure job with a pension if I’m going to be able to live here.”
Alain, 40, is facing a career crisis. Having worked in arts administration for most of his life, he has realized that the $58,000 annual salary he currently earns will be insufficient to fund his retirement. But he’s unsure of what new career to leap into. “I’ve worked on contract for years and I could use a stable office job where I’m not working with the public,” he said.
Alain is happy that he has finally almost paid off $30,000 in credit-card debt that he accrued by making only the minimum payments every month for 15 years. “I have ADHD and for many years I let my credit-card debt build up,” he said, adding that he used his credit cards for trips abroad, certifications and day-to-day expenses such as groceries. “I just let things slide, and one day it was $30,000.”
He got a consolidation loan from his bank with an interest rate of 8 per cent and one monthly payment. And he decided during the pandemic to pay it off aggressively – after all, it’s not like he could eat out or travel – so only $1,100 remains.
“The great news is that my credit is now amazing,” he said.
The downside of paying off his debts is that Alain now has little in savings. He recently joined his workplace’s group RRSP but has yet to contribute to it, and his Tangerine TFSA balance stands at $4,500. He occasionally works as a bartender at private parties and events. That brings in about $8,000 a year.
Alain also ensures that his rent doesn’t erode his savings; he shares an apartment with a roommate in downtown Toronto, paying $850 a month. He doesn’t drive, taking transit and using a bike to get around. However, he likes to splurge on eating out and travelling. In the past year he has visited Spain and plans to travel again in the fall. He lost a close friend a number of years ago and wants to ensure he enjoys his life as much as possible. “I love to eat out and try new foods, have new experiences,” he said.
Alain dreams of buying a small condo, though he realizes that unless he starts saving a lot of his income – or upgrades to a better-paying job – that will be very hard to do. “I’d love to have a little place in Toronto or outside Toronto,” he said.
“But I’m worried what I’ll be doing in the future,” he said. “I need to find a secure job with a pension if I’m going to be able to live here.”
His typical monthly expenses:
Investment and savings: $150
$150 to savings. “I currently have $400 in my savings account.”
$0 to TFSA. “I have $4,500 sitting in the TFSA.”
$0 to RRSP. “I know I should contribute to my RRSP – I’m going to aim to save $100 a month.”
Household and transportation: $1,056
$850 for rent. “It’s a two-bedroom basement apartment in a great part of the city – there are lots of bars and restaurants. I have a roommate. It’s a 25-minute commute to work.”
$29 for renter’s insurance.
$60 for hydro. “It’s crazy how it oscillates. But I’m not home that often.”
$0 for internet. “My roommate pays for internet – it’s high-speed.”
$100 on transit. “That includes longer GO trips to visit family.”
$17 on bike maintenance. “It’s a beater that no one will steal. A bike repair store sold it to me for $250.”
Food and drink: $500
$200 on groceries. “I shop at Metro. I live on eggs, simple salads, canned fish, coffee, almond milk. I make a lot of stir fries, omelettes, soup.”
$200 on eating out. “I like a nice pho, Chinese ramen, French tacos – it’s a fad out of Paris, they use chicken, Gruyère cheese, mushrooms, crispy onions.”
$80 on Uber Eats. “My favourite places to order from are noodle restaurants.”
$20 on coffee. “I have a French press at home. But I like to grab the odd coffee from Starbucks.”
Miscellaneous: $630
$105 on cellphone. “I’m on a plan to buy the phone – it’s a Samsung S23.”
$33 on clothing. “I have to buy clothes for work – dark shirts and warm clothes for biking in winter.”
$15 on haircuts. “I go to Chinatown to get my haircut.”
$30 on books. “I have a library card and I don’t buy as many books as I used to.”
$30 on hobbies. “I love going to the movies. I go on Tuesdays. I’m looking forward to seeing the next Indiana Jones film.”
$5,000 per year on vacations. “These are the highlight of my year. I like visiting a lot of different places. I might go to Ireland next.”
Some details may be changed to protect the privacy of the person profiled. We want to thank him for sharing his story. Are you a millennial or Gen Z who would like to participate in a Paycheque Project? Send us an e-mail.
