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Name, age: Joey, 27
Annual income: $115,000
Debt: $0
Savings: $40,000 in savings account
What he does: Global communications manager
Where he lives: Montreal
Top financial concern: “The job market is really unstable and unpredictable right now.”
Joey, 27, has had a whirlwind of a year.
“No person says, ‘I am going to switch jobs four times in a year,’ ” says Joey, who works in public relations (PR). “But in a year’s time, I have doubled my salary.”
Joey changed jobs between PR agencies in the Toronto area last year, bumping his salary from about $60,000 to $85,000. Then he lost his job in a round of layoffs and was unemployed for a few months – but since he lived with his parents and had savings in the bank, he was able to bide his time and be selective about his next role.
He ended up taking a job in Montreal that paid $90,000, and then left that for another job that paid $115,000 with benefits, a 5-per-cent annual bonus and a defined-contribution pension.
“It’s been chaotic,” he says, noting he’s ready to stay where he is for the time being. “I was chasing the money a little bit.”
Now that he has a salary that was hard to imagine a short time ago, he’s wrapping his head around his next financial steps.
“I am at a point of celebrating this new salary level and place of independence. There are some big-picture questions I need to ask myself,” he says, including whether he should start saving for home-ownership. He’d also like to open some registered accounts, such as a tax-free savings account (TFSA). “Right now, I am sort of living in the moment.”
A big part of what is preventing Joey from getting started with investing is anxiety about job security and the state of the current job market. In addition to going through his own layoff, he says numerous friends have also been laid off in the past year, which had contributed to a general tone of financial uncertainty.
His parents – who he credits for setting him up financially to finish university debt-free and teaching him solid money habits – have long advised him to have six months of living expenses set aside to prepare for emergencies.
“Planning for uncertainty and having that emergency fund helped me when I got laid off,” he says.
Joey’s main luxury in life is travel, a value that also came from his parents. He justifies several trips a year on the fact that he doesn’t waste money elsewhere – he doesn’t drink, do drugs, take taxis or have other expensive hobbies – and says the benefit he gets from travelling, such as trying new foods, is worth the cost.
“It’s the best way to spend money and get the best bang for your buck,” says Joey.
His typical monthly expenses:
Investment and savings: $2,000
$2,000 to saving account. “My emergency fund and lifeline if a big expense comes up.”
Servicing debt: $0
Household and transportation: $2,300
$1,800 on rent. “Definitely less [than in Toronto]. You’re able to get a lot more for the same amount.”
$100 on renter’s insurance.
$200 on transit. “In Montreal, you really don’t need a car.”
$0 on Uber or taxis.
$100 on cellphone
$100 on internet
Food and drink: $900
$750 on groceries. “I try to eat pretty healthy and I will splurge on food.”
$0 on coffee shops
$150 on eating out
Miscellaneous: $1,085
$200 on concerts
$15 on streaming services
$10 on apps. “I split a Disney Plus subscription and Spotify family subscription with my brother.”
$150 on clothing.
$10 on haircuts. “I have long hair. I cut it once every six months for $60.”
$100 on cosmetics. “Skin care products.”
$100 on personal services. “I will go to the spa or get a facial every few months.”
$500 on vacations. “One big international trip every year and then some smaller trips.”
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.
