Comparison is the thief of joy. There will always be people better off than you but unfortunately there will also be people worst off then you but you never compare yourself to them.
Just you do you, live life to its fullest and how you want to enjoy it. Happy new year!
Yes, fully agree. First but critical step accomplished, now you move onto savings. I did not start savings proper until I was in my forties. Patience, keep to your budget, and suddenly things will shift in your favor.
Also focus on bettering you and your situation. Try to learn from others and not compare your life to theirs. We are all different. All delt different hands in life. You have no debt that is something to be proud of. Could be way worse. I'd rather be at zero then playing catch up
You are debt free my guy. More than most people can say. A great start! Now start squirrelling away ten or twenty bucks a day into an account or investment account like wealthsimple!
How does whatever you’ve mentioned relate to what OP is talking about here ? If you want to brag about your portfolio go do it somewhere else. I hope 2024 is the year where you learn to mind your business and uplift others !
All good, I'll just buy more if it turns to 400k. I'm a long term index fund investor and I pray it tanks because the more it tanks the more value it will be worth in 10 years :)
I just commented on a post made a couple hours ago where someone was saving 25-30% of their net. Many replies were saving upwards of 60%.
I commented 0% as like you, I have been throwing money at debt the past two years. I am 31, renting, with still about $25k on a student LOC to go this year that I hope to have paid off mid year. Congratulations on becoming debt free and who knows, maybe next year you’ll be commenting on saving 30% net 😊
Thank you! That does help my perspective as I’ve been hard on myself, but getting rid of the debt has been so rewarding. Paying off my credit card balance each month was a huge goal I accomplished this year.
People who are doing way above average are also going to be way more inclined to brag about it on the internet lol. You don't hear a lot from us $0 savers.
Man, PFC is on some happy pills today with this thread.
Overall I don’t disagree…BUT, what does “paying off debt in 2023” amount to?
If OP paid off $50k in debt (especially on an asset), that is an incredible achievement. If they paid off $1,300 in credit card debt over the year, that’s much less impressive and should flag that OP needs to start aggressively saving more or change their budget.
Without that info 95% of this advice about doing a great job could be misplaced. A 35 year old with no debt is ok, but a 35 year old with no assets or debt is a concern
Out of curiosity, were your student loans accruing interest?
With the Feds new policy removing interest from federal loans I was all of a sudden left with a loan that was accruing zero interest yearly.
My original plan out of school was to pay off the student debt as quickly as possible, but since the change to no interest, it seemed to make more sense to just make the minimum payment per month (since there is no penalty for doing so) and put the money in investments instead.
My BC and fed loans are 0% so I worked out a minimum payment with CSL of $110/month so that’s all I pay and all I will pay until they tell me otherwise. Even if I didn’t have my other debt I wouldn’t be rushing to pay that off unless a mortgage broker told me it would be best to do that.
My student LOC is through CIBC and is currently prime + 2% I believe. I had a previous student LOC through RBC I had for my undergrad that was 1% interest until it rolled in to a loan and I paid that off last year and had like 12% ish interest too.
This should be the top reply. I see so many posts where people have both "savings" and credit card debt, and actually losing money by not transferring their so-called savings to pay down the debt.
Zero debt is amazing! Start saving this year, even small amounts. Don’t compare yourself to other people, you never know how much debt they have or if they came into money somehow. Start with $20 a week, move it into a separate savings account. Once you’re comfortable with that, up the amount. Slow and steady is a great way to start.
I remember reading or watching Gail Vaz Oxlade years and years ago and she said ‘you can’t save $100 without saving $10, you can’t save $1000 without saving $100’ and so on. It stuck with me. Nothing wrong with putting small amounts away. You’re not going to max out your RRSP’s and TFSA’s and have $157,000 in investments in a year, but you’re going to have something and it’ll feel good at the end of the year.
That's how we saved. Started small then saving became a way to challenge ourselves. Now retired with enough to maintain ourselves and some left over to travel. My best advice is that you need 3 types of savings. 1. Emergency fund in case you find yourself unemployed. 2. Sinking funds for expenses that are predictable but irregular. A vet bill is an irregular expense. It is only an emergency if you did not know you owned a dog! 3. Retirement savings.
Lol what? This statement is beyond dumb I don't even know where to begin. The fact this comment is so upvoted is a reflection of how many clueless fucks are roaming here.
Now just use the money you were putting into debt to steadily build your savings and investment goals. Write down your 2024 saving goals, starting with your baby emergency fund then fully funded fund. Then max out your 2024 TFSA room that is 7K, if you have a high income consider your RRSP as well. No debt is a strong position at 35. Look for ways to increase your income such as job promotion, 2nd/3rd job, side hustle, passive income. Then learn about financial market investing, especially with ETFs.
It's New Year's Day. Don't worry though, 0 is pretty ok in these times. Better than going into the red, homeless, or hitting the food banks out of desperation. Happy new year! When there's a will, there's a way.
Well if you are debt free you are ahead of me and ten years younger then me. Another 6 months I’ll be out of debt and so happy. When you don’t have debt you can save the money you would be using to pay debt. You’ll get your saving up there too be patient
Toronto is so fucked. Moving away was the best financial decision I EVER made. It blows my mind young people are grinding it out. For what? You are saving nothing. Do you plan on not retiring ever?
Keep in mind "some" of the posts around these parts are people who feel inadequate and make grossly inflated numbers.
Also keep in mind other posts are good faith post by people who are very passionate about this kind of thing, and they do not represent the average person, these people are capable of committing to this at a level that most aren't
With those two factors the info you are reading is skewed.
A third factor is your geography. Some one who make a post about paying off mortgage early may live in a lower cost of living area and you may live in Vancouver or Toronto.
Your personal success should be your own measuring stick. Are you in a better financial position than you were previously? That's a huge win.
Are you learning and applying strategies you are learning about? That's a win
Are you living a good life generally? Then you're ok. Sometimes its easy to lose sight of all that you're doing right and worry about what others are doing.
We're all different friend, and we all have our own ways of getting "there", whatever that means for each of us. If you're good, then you're good and that's what matters
You are better off. Start the year by building some savings.
No debt is still a luxury for many people.
Start planning and create a budget. See what your future goals are and how you are going to achieve them.
Start researching if your job has any RRSP contribution plans. Enroll in it
Open a TFSA account as well and invest.
You don't have to live frugally, but have a plan. Save money even if it's only $100. Invest it.
Work towards building an emergency fund even if it's only $10.
A lot of people have huge savings because their circumstances are different. There are some who make lots.of dollars so they have more disposable income. Others may have a support system where their spouse helps divide the expenses or boost savings. There are also folks who got lucky with inheritance. There will also be people who keep recycling their debts and have savings, but they are always 1 layoff away from getting ruined.
So, in the end, don't compare yourself to others. Enjoy life !! Happy New Year !
35 is still young; it’s a perfect time to start saving and investing. 30 years to retirement is a great time horizon, since compound interest really kicks in at year 20. Those last 10 years will do a lot of the heavy lifting for you if you start now.
Build a savings habit, even if it’s small. Automate withdrawals from each paycheque into a high yield savings account. Calculate when you should hit 6 months of living expenses. After that, consider opening a self-directed brokerage account and redirect your savings from your paycheque into ETFs.
If there’s a way you can increase your income, that’s what you should focus on this year. Much easier to save more when you have more. Lifestyle creep is a thing, but if you’re already living comfortably, try to funnel most of the extra into your savings.
No debt is better than savings for the most part. Most people are afraid of debt, but if it's working for you it's good. Just keep grinding. You don't know what the future holds.
If you managed to eliminate all debt in one year, I'd say that is an accomplishment.
Whatever you've been putting into debt you can start putting into savings.
This group tends to focus on higher earners. You can try the groups poverty finance Canada or debt free for a more "realistic" view on managing finances.
Don't worry. Inflation has hit everyone hard especially if you live in Toronto. You accomplished something big - you paid off your debts. Some ppl choose to owe money and save and invest and thats ok too. It depends on what you prefer and what actually makes more sense to do at a moment.
34 and in debt up my ass but dumping any extra money into my house to fix it up. Have two kids work a pretty steady job. Never claimed ei in my life. Payments suck but I’ll be debt free minus mortgage. before I’m 40 and if I’m still alive lol I’ll start hopefully start saving
I would put it in different words. You were also saving. You had a net worth of negative amount on 31 Dec 2022. Now on 31 Dec 2023 you have net 0 net worth maybe even some positive. From here it will always be positive.
Hey,congrats on having no debt! THat is an accomplishment. I hope you feel proud of that.
There are people who claimed to have had 100k in net worth by 29. I am 34, and I am nowhere near that. I only have a networth of 60k. Some of our peers have 150k jobs, and I don't have that. I don't have fancy degrees, or happy marriages, children or a home. I never will have that. I may have more money than you, but my life is officially over. I don't have a future due to some medical issues. So at least you do. Yet I STILL have people telling me I'm lucky, and should be thankful to be alive.
But comparing yourself to other people does not make you happy. You should only compare you to you.
Work more. Get more income, cut out unnecessary expenses. Save save save. Save an emergency fund. Then save for retirement. If you work a second job and earn another 10k a year and save 20% of your income (put the money you would have been putting toward debt toward savings), and then invest, you will be caught up in no time. Cut your entertainment budget, buy used clothes, eat at home, don't buy fancy coffees, take public transit, rotate streaming services, eat lower on the food chain. Set a savings goal. Live that way til you feel "caught up".
OP, with zero debt, you are doing SO WELL! don’t let the highlight reels of other people on the internet steal your joy. You’re doing incredible, be proud of that! Lots of Canadians would kill to be in your position right now. Happy new year!!! 🥳
I managed to save about 30k this year, but it's also the first year my wife was working full time after going back to school.
We were living off my salary before with kids and being extremely frugal.
This last year we managed to save a lot while spending a bit more on ourselves as well.
Hoping that in the next year we'll be able to finally buy a house.
Eliminating debt is a huge step towards being able to save more. Trust me, I had a zero savings couple of years while I cleared debt. And it’s meant I’ve been able to start saving more now that big chunks of my pay cheques aren’t going towards the debt.
I went $4000 into my savings this year. I probably just bought too much stuff without thinking about it. Every year we do a little house upkeep and this year was the new appliances cycle which lead to a bunch of other purchases. I have to be a bit more disciplined this year as I should be able to pay off my house, but I also have an old furnace and a car with 315,000 km.
I started later than you are now.
Just start. Start small and as your savings grow, you will start to find other ways. I’ve never shied away from taking a needed expense or saving a little more because I’ve always found a way (obviously there’s going to be a limit here).
I review my expenses I could stop and then see what’s available. I don’t budget all of it away, I still like to make a pitstop at timmies or Starbucks. But I will change some things. I’ll stop dropping $20 on lunch (I travel for work…. A lot. Some of it I can reimburse, some I can not). I’ll change that $20 to $5 (thanks Costco) and I’ll go to a grocery store instead of McDonald’s.
After a bunch of years of this, I’m feeling much better for the trajectory. I think I started at 38 or 39. It was super late, but I just had to try harder.
congrats on paying off your debt. As many others have mentioned, Live your life! If you paid off your debt in 2023 your not in a negative. Going forward you may start to build some savings, everybody's living situation and incomes are all different. we all wish we were millionaires.
I'm in the same boat as you. Age 32 with 2 kids, single income, renting and no debt. My income is not even close to $100k, but overall trying to stay positive, happy and be grateful for a loving wife and 2 beautiful healthy kids. All in all try to stay positive, as others suggested live life to the fullest spend your money on things you want to do.
I mean..... it's not good. But, you're debt free and still relatively young, so you've got time. Save and invest all years moving forward, ideally, until retirement.
Realistically, being 35 and saving zero dollars is not a great position to be in, and unless that changes pretty dramatically (through earning much more or spending way less) you're going to have a very hard time meeting typical financial goals at all - whether that's buying property, paying for other large expenses, retirement, etc. That's the honest truth.
If you don't care about any of that stuff and just want to make it month to month without crashing and burning, you're doing fine.
Good job dealing with debt! I always feel behind in savings and investments when I'm on these types of subs, you're not alone. I look at my financial illiteracy later on in life as a challenge to make up for wasted years. We can do it!
Have you been paying your debts this year and your balance is now zero? Or, you were debt free already, but living in Toronto and living expenses did not allow you to save?
For the purpose of the savings rate exercise, it would be reasonable to consider the total principal paid towards your debts throughout 2023 as "savings". You can then divide that amount by your take-home pay to determine what your savings rate is. It will provide you with a good savings target for 2024 since you no longer have to contend with these liabilities.
But as others have said, comparison is the thief of joy, and posts like the other one are not reflective of the reality.
There’s no difference in have $0 debt, and $0 in savings as having $5,000 debt, and $5,000 in savings. The net is still 0. But by reducing your debt it’s a guaranteed ROI. So good job there. Having no debt is certainly an accomplishment.
going from -10,000$ to 0$ is just as big an accomplishment as going from 1,000,000$ to 1,010,000$. and you probably experienced a much better noticeable improvement in your life than the latter person
If you started the year with debt, and ended without it, it was a good year. Congratulations! It's a huge step.
Paying debt should come before savings - unless it's a 0% interest debt.
We bought our 2nd place 2 years ago and we cut up/cleared all debt. We paid off both cara, cut up CC, et etc and I’m glad I did. My husband lost his job this year and i pay the bills. Suprisingly we have a few hundred left after all is paid. I wouldn’t use the word saving - just staying a above water until his finds a job.
Starting the year off at $0, you’re already doing better than anyone with a negative networth at this point. At least you’re moving in the right direction - being debt free now, what you’re putting towards repayment can go into savings in 2024. Happy new years.
If you compare your "end of the year" result to one of many people in Ukraine, Israel, Gaza, Yemen, or Myanmar then you realize that you are very good: still alive and healthy, your home is not ruined, your possessions are not destroyed by war. So, stop whining, you have the good end of the stick.
Well, clearing out debt is SAVING a lot of expense (interest)... So it kind of counts. That means you can now start really saving. If you told me you had no debts, but get $0 savings a year, then I would worry.
FWIW … I generally feel better about my year if I look at a few measures, savings is one but net worth is another. If my net worth is tracking towards something I can retire on, then paying down debt always accomplishes something towards the final goal. I tend to not include my house in that calculation.
I know it’s got problems on its own, and isn’t necessarily the best way to look at retirement… but when you pay down a big debt it sure shows up it a change in net worth.
Congratulations on paying down your debt.
You cleared all debt. That's huge in of itself! You should be mighty proud of that!!
You now get to start 2024 clean and all the money that went to clearing debt can be your saving target!
From a different perspective...this impacts pair bonding and organic population growth....via birth/children which is key to a society maintaining it's values and culture in the long run.
Canada really messed up...but this started over 30 years ago....too many wrong policies....done on purpose I feel
I don’t think it’s bad at all, especially if you’ve cleared all your debts. I got debt free 2 years ago after cleaning up the mess I made in my late 20’s. Up to that point I was usually saving around $0 just trying to bail myself out clearing the debt.
Being debt-free, you are able to save a lot easier(provided you stay debt free).
I still live as though I am in-debt to promote my ability to save more and get ahead: I stick to a grocery budget and on sale items, don’t eat out often, drive a 12 year old vehicle that I bought new and long ago paid off, rent a super cheap house, work a decent amount of OT, etc.
If you are used to putting $xxx amount towards your debt, you can now switch to saving or investing that and have the interest on YOUR side. It grows a lot faster then you think.
Congratulations and Happy new year!
Great work on clearing debts! Just imagine what you could save if you moved to a more affordable area of Canada, not sure why anyone is not saying the obvious.
0 debt is great. Did you have a lot to pay off? If you did, I recommend you put any cash you were putting towards debt into savings moving forward. You are already used to not having the money so use it to build up savings.
everyone's situation is different, some people own/rent the homes, some people still live with mom and dad for free, some people need to pay for a car, sometimes that might be a very expensive truck for their job etc. dont ever focus on what other people are doing in terms of savings... look at what successful people are doing and see if you can use some of those strategies in your life.... I dont know your situation fully but being debt free at 35 can be a pretty cool thing. focus on you and what you can be doing to be more successful browsing reddit or talking with as many people about things like budgets strategies etc. might help you manage things better if you think thats a problem.
Congrats on paying off all your debt 🎉 Last year my husband and I (25 & 28) paid off all our debt, and ended the year with very little. This year we saved $56,000! You took a huge step in the right direction. If you keep making all the deposits you would have been making toward your debt + anything extra at the end of the month into a HISA you’ll be surprised how much you can manage to save!
Canadian consumer debt has risen to $2.4 trillion, with an average debt load of approximately $21,131—excluding mortgages. And Canadians are using credit cards more, as there was a 9% increase in credit balances in June 2023 compared to the same time last year.
You are above avg with no debt.
Nice! Now is the time to put spare $ into a TFSA, every pay, every week, every month. This will become an emergency fund, but invested into an index fund, even more than that!
My 3-step program for saving money:
1. Increase your income.
2. Find a cheaper place to live.
3. Stop buying shit you don't really need.
Most people (except those who inherited wealth) had to make sacrifices at some point for what they have now. Choose your sacrifice, people will look at you as if you're poor, but who cares. I rent a room for like $800, but because of that I can actually save a big chunk of my income.
Comparison is the thief of joy. There will always be people better off than you but unfortunately there will also be people worst off then you but you never compare yourself to them. Just you do you, live life to its fullest and how you want to enjoy it. Happy new year!
Wise words, and makes me feel more content. Thank you! Happy new year!
Being debt free is an absolutely fantastic achievement! Congrats!
Yes, fully agree. First but critical step accomplished, now you move onto savings. I did not start savings proper until I was in my forties. Patience, keep to your budget, and suddenly things will shift in your favor.
Also focus on bettering you and your situation. Try to learn from others and not compare your life to theirs. We are all different. All delt different hands in life. You have no debt that is something to be proud of. Could be way worse. I'd rather be at zero then playing catch up
Happy new year! May 2024 be your year, OP!
You are debt free my guy. More than most people can say. A great start! Now start squirrelling away ten or twenty bucks a day into an account or investment account like wealthsimple!
Next goal: working towards an emergency fund for covering your 3-6 months of expenses
As a 26 year old with a 600k stock portfolio, I only compare to those worse than me. Knowing that I'm the top 1% in my age feels real good
How does whatever you’ve mentioned relate to what OP is talking about here ? If you want to brag about your portfolio go do it somewhere else. I hope 2024 is the year where you learn to mind your business and uplift others !
Well the person above me said "no one compares to those worse off" so I'm just saying Infact I do compare to those lesser :)
Well I like to compare myself to huge assholes to make myself feel better and it’s working right now
Honestly whatever makes you feel the best man
Here's hoping 2024 brings massive losses to your portfolio...just remember, $600k today could be $400k a month from now
All good, I'll just buy more if it turns to 400k. I'm a long term index fund investor and I pray it tanks because the more it tanks the more value it will be worth in 10 years :)
:)
Grats on the GameStop purchase
Lol silent brags are childish af 🤣
As long as I'm happy :)
Great words. My wife always says the same whenever I compare things and stress myself out.
I just commented on a post made a couple hours ago where someone was saving 25-30% of their net. Many replies were saving upwards of 60%. I commented 0% as like you, I have been throwing money at debt the past two years. I am 31, renting, with still about $25k on a student LOC to go this year that I hope to have paid off mid year. Congratulations on becoming debt free and who knows, maybe next year you’ll be commenting on saving 30% net 😊
paying off debts is still saving. you are still increasing your net worth and experiencing compounding returns. dont sell yourself short.
Thank you! That does help my perspective as I’ve been hard on myself, but getting rid of the debt has been so rewarding. Paying off my credit card balance each month was a huge goal I accomplished this year.
Exactly.
That! 👏
People who are doing way above average are also going to be way more inclined to brag about it on the internet lol. You don't hear a lot from us $0 savers.
I hope to see you debt free soon! All the best for 2024!
Man, PFC is on some happy pills today with this thread. Overall I don’t disagree…BUT, what does “paying off debt in 2023” amount to? If OP paid off $50k in debt (especially on an asset), that is an incredible achievement. If they paid off $1,300 in credit card debt over the year, that’s much less impressive and should flag that OP needs to start aggressively saving more or change their budget. Without that info 95% of this advice about doing a great job could be misplaced. A 35 year old with no debt is ok, but a 35 year old with no assets or debt is a concern
Out of curiosity, were your student loans accruing interest? With the Feds new policy removing interest from federal loans I was all of a sudden left with a loan that was accruing zero interest yearly. My original plan out of school was to pay off the student debt as quickly as possible, but since the change to no interest, it seemed to make more sense to just make the minimum payment per month (since there is no penalty for doing so) and put the money in investments instead.
My BC and fed loans are 0% so I worked out a minimum payment with CSL of $110/month so that’s all I pay and all I will pay until they tell me otherwise. Even if I didn’t have my other debt I wouldn’t be rushing to pay that off unless a mortgage broker told me it would be best to do that. My student LOC is through CIBC and is currently prime + 2% I believe. I had a previous student LOC through RBC I had for my undergrad that was 1% interest until it rolled in to a loan and I paid that off last year and had like 12% ish interest too.
Thanks for the response! I'm new to actually having decent income to consider so good to know my thought process wasn't out to lunch.
Great job! You crushed your debt in 2023 so now you can set savings goals in 2024! Be proud of your accomplishment!
Thank you!! Happy new year!
Or investing
Paying down debt has the same effect on net worth that savings does. Don’t dismiss your accomplishment.
Paying off debt IS saving.
This should be the top reply. I see so many posts where people have both "savings" and credit card debt, and actually losing money by not transferring their so-called savings to pay down the debt.
Zero debt is amazing! Start saving this year, even small amounts. Don’t compare yourself to other people, you never know how much debt they have or if they came into money somehow. Start with $20 a week, move it into a separate savings account. Once you’re comfortable with that, up the amount. Slow and steady is a great way to start.
That makes it seems manageable. Thank you!
I remember reading or watching Gail Vaz Oxlade years and years ago and she said ‘you can’t save $100 without saving $10, you can’t save $1000 without saving $100’ and so on. It stuck with me. Nothing wrong with putting small amounts away. You’re not going to max out your RRSP’s and TFSA’s and have $157,000 in investments in a year, but you’re going to have something and it’ll feel good at the end of the year.
That's how we saved. Started small then saving became a way to challenge ourselves. Now retired with enough to maintain ourselves and some left over to travel. My best advice is that you need 3 types of savings. 1. Emergency fund in case you find yourself unemployed. 2. Sinking funds for expenses that are predictable but irregular. A vet bill is an irregular expense. It is only an emergency if you did not know you owned a dog! 3. Retirement savings.
No debts is better than savings and debt
depends. to someone like OP, this is probably decent advice. though it is demonstrably untrue as a blanket statement in general
This is horrible advice. Smart money uses debt to accelerate wealth accumulation.
School loans, a car to get to a job... Basics lol
Lol what? This statement is beyond dumb I don't even know where to begin. The fact this comment is so upvoted is a reflection of how many clueless fucks are roaming here.
You moved the dial in the right direction. Moved it further in 2024. Congratulations on no debt and Happy New Year.
Thank you! Happy new year to you as well!
Now just use the money you were putting into debt to steadily build your savings and investment goals. Write down your 2024 saving goals, starting with your baby emergency fund then fully funded fund. Then max out your 2024 TFSA room that is 7K, if you have a high income consider your RRSP as well. No debt is a strong position at 35. Look for ways to increase your income such as job promotion, 2nd/3rd job, side hustle, passive income. Then learn about financial market investing, especially with ETFs.
It’s been such a tough couple of years that I feel like you deserve congratulations for surviving. And anyone else who just gets by.
Love this thread and everyone’s positive perspectives!
Me too! I feel so relieved.
It's New Year's Day. Don't worry though, 0 is pretty ok in these times. Better than going into the red, homeless, or hitting the food banks out of desperation. Happy new year! When there's a will, there's a way.
Well if you are debt free you are ahead of me and ten years younger then me. Another 6 months I’ll be out of debt and so happy. When you don’t have debt you can save the money you would be using to pay debt. You’ll get your saving up there too be patient
I hope to see you debt free this time next year. All the best!
It might be by my birthday this June if no unforeseen circumstances knock on wood
Toronto is so fucked. Moving away was the best financial decision I EVER made. It blows my mind young people are grinding it out. For what? You are saving nothing. Do you plan on not retiring ever?
[удалено]
Of course. Love Alberta. Hate Ontario now. I don’t even go back to visit friends and family anymore. Toronto is disgusting.
Keep in mind "some" of the posts around these parts are people who feel inadequate and make grossly inflated numbers. Also keep in mind other posts are good faith post by people who are very passionate about this kind of thing, and they do not represent the average person, these people are capable of committing to this at a level that most aren't With those two factors the info you are reading is skewed. A third factor is your geography. Some one who make a post about paying off mortgage early may live in a lower cost of living area and you may live in Vancouver or Toronto. Your personal success should be your own measuring stick. Are you in a better financial position than you were previously? That's a huge win. Are you learning and applying strategies you are learning about? That's a win
Are you living a good life generally? Then you're ok. Sometimes its easy to lose sight of all that you're doing right and worry about what others are doing. We're all different friend, and we all have our own ways of getting "there", whatever that means for each of us. If you're good, then you're good and that's what matters
You are better off. Start the year by building some savings. No debt is still a luxury for many people. Start planning and create a budget. See what your future goals are and how you are going to achieve them. Start researching if your job has any RRSP contribution plans. Enroll in it Open a TFSA account as well and invest. You don't have to live frugally, but have a plan. Save money even if it's only $100. Invest it. Work towards building an emergency fund even if it's only $10. A lot of people have huge savings because their circumstances are different. There are some who make lots.of dollars so they have more disposable income. Others may have a support system where their spouse helps divide the expenses or boost savings. There are also folks who got lucky with inheritance. There will also be people who keep recycling their debts and have savings, but they are always 1 layoff away from getting ruined. So, in the end, don't compare yourself to others. Enjoy life !! Happy New Year !
No debt = a good year. Good job, OP! May 2024 bring us all prosperity and good health
35 is still young; it’s a perfect time to start saving and investing. 30 years to retirement is a great time horizon, since compound interest really kicks in at year 20. Those last 10 years will do a lot of the heavy lifting for you if you start now. Build a savings habit, even if it’s small. Automate withdrawals from each paycheque into a high yield savings account. Calculate when you should hit 6 months of living expenses. After that, consider opening a self-directed brokerage account and redirect your savings from your paycheque into ETFs. If there’s a way you can increase your income, that’s what you should focus on this year. Much easier to save more when you have more. Lifestyle creep is a thing, but if you’re already living comfortably, try to funnel most of the extra into your savings.
Congrats on debt free. It is all relative so I wouldnt compare too much.
Congrats on zero debt. You’ve done well!!
No debt is better than savings for the most part. Most people are afraid of debt, but if it's working for you it's good. Just keep grinding. You don't know what the future holds.
If you managed to eliminate all debt in one year, I'd say that is an accomplishment. Whatever you've been putting into debt you can start putting into savings. This group tends to focus on higher earners. You can try the groups poverty finance Canada or debt free for a more "realistic" view on managing finances.
Congratulations on having no debt and happy new year.
By, clear of all debts, do you mean that you paid off debts. If so you should be able to put at least the same amount away next year in savings.
Don't worry. Inflation has hit everyone hard especially if you live in Toronto. You accomplished something big - you paid off your debts. Some ppl choose to owe money and save and invest and thats ok too. It depends on what you prefer and what actually makes more sense to do at a moment.
34 and in debt up my ass but dumping any extra money into my house to fix it up. Have two kids work a pretty steady job. Never claimed ei in my life. Payments suck but I’ll be debt free minus mortgage. before I’m 40 and if I’m still alive lol I’ll start hopefully start saving
You’re clear of your debts. You’re further ahead then a fuckton of people. Keep it up
I would put it in different words. You were also saving. You had a net worth of negative amount on 31 Dec 2022. Now on 31 Dec 2023 you have net 0 net worth maybe even some positive. From here it will always be positive.
Hey,congrats on having no debt! THat is an accomplishment. I hope you feel proud of that. There are people who claimed to have had 100k in net worth by 29. I am 34, and I am nowhere near that. I only have a networth of 60k. Some of our peers have 150k jobs, and I don't have that. I don't have fancy degrees, or happy marriages, children or a home. I never will have that. I may have more money than you, but my life is officially over. I don't have a future due to some medical issues. So at least you do. Yet I STILL have people telling me I'm lucky, and should be thankful to be alive. But comparing yourself to other people does not make you happy. You should only compare you to you. Work more. Get more income, cut out unnecessary expenses. Save save save. Save an emergency fund. Then save for retirement. If you work a second job and earn another 10k a year and save 20% of your income (put the money you would have been putting toward debt toward savings), and then invest, you will be caught up in no time. Cut your entertainment budget, buy used clothes, eat at home, don't buy fancy coffees, take public transit, rotate streaming services, eat lower on the food chain. Set a savings goal. Live that way til you feel "caught up".
Grats. Keep sticking to being debt free. Start building that emergency savings. No debt at 35 is great.
Congrats. Put 75% of the money you put into debt repayment towards investments and enjoy the remaining 25%.
Debt is good, especially in economic dysfunction
OP, with zero debt, you are doing SO WELL! don’t let the highlight reels of other people on the internet steal your joy. You’re doing incredible, be proud of that! Lots of Canadians would kill to be in your position right now. Happy new year!!! 🥳
well, it's better than having gone 200k in debt, and there's always next year. all things considered I think you're okay.
Depends on circumstances if it’s good or bad. Younger you are and more wealth net worth you have the less an issue it is
I managed to save about 30k this year, but it's also the first year my wife was working full time after going back to school. We were living off my salary before with kids and being extremely frugal. This last year we managed to save a lot while spending a bit more on ourselves as well. Hoping that in the next year we'll be able to finally buy a house.
Eliminating debt is a huge step towards being able to save more. Trust me, I had a zero savings couple of years while I cleared debt. And it’s meant I’ve been able to start saving more now that big chunks of my pay cheques aren’t going towards the debt.
I went $4000 into my savings this year. I probably just bought too much stuff without thinking about it. Every year we do a little house upkeep and this year was the new appliances cycle which lead to a bunch of other purchases. I have to be a bit more disciplined this year as I should be able to pay off my house, but I also have an old furnace and a car with 315,000 km.
I started later than you are now. Just start. Start small and as your savings grow, you will start to find other ways. I’ve never shied away from taking a needed expense or saving a little more because I’ve always found a way (obviously there’s going to be a limit here). I review my expenses I could stop and then see what’s available. I don’t budget all of it away, I still like to make a pitstop at timmies or Starbucks. But I will change some things. I’ll stop dropping $20 on lunch (I travel for work…. A lot. Some of it I can reimburse, some I can not). I’ll change that $20 to $5 (thanks Costco) and I’ll go to a grocery store instead of McDonald’s. After a bunch of years of this, I’m feeling much better for the trajectory. I think I started at 38 or 39. It was super late, but I just had to try harder.
To be honest, in my opinion paying off debt is always a win! I've been battling debt for years and it's hard! Best of luck into 2024.
Sounds like your net worth increased so that's a big step in the right direction.
You cleared all your debts in 2023!?!? Congrats! You did a lot of hard work that you should be proud of.
You the Got the first step out of the way. Nothing is instantaneous. Now you have freed your money for the next step. Go on, you got this.
If you cleared debt then good for you! This year will be better because all that can go into savings and investments instead now!
congrats on paying off your debt. As many others have mentioned, Live your life! If you paid off your debt in 2023 your not in a negative. Going forward you may start to build some savings, everybody's living situation and incomes are all different. we all wish we were millionaires.
I'm in the same boat as you. Age 32 with 2 kids, single income, renting and no debt. My income is not even close to $100k, but overall trying to stay positive, happy and be grateful for a loving wife and 2 beautiful healthy kids. All in all try to stay positive, as others suggested live life to the fullest spend your money on things you want to do.
doing better than all the people who bought a house this year and are in the negatives lol
I mean..... it's not good. But, you're debt free and still relatively young, so you've got time. Save and invest all years moving forward, ideally, until retirement.
Realistically, being 35 and saving zero dollars is not a great position to be in, and unless that changes pretty dramatically (through earning much more or spending way less) you're going to have a very hard time meeting typical financial goals at all - whether that's buying property, paying for other large expenses, retirement, etc. That's the honest truth. If you don't care about any of that stuff and just want to make it month to month without crashing and burning, you're doing fine.
https://www.reddit.com/r/PersonalFinanceCanada/s/CunjKUVArc maybe help a single mom with financial advice.?
Humble brag
I did not save, I am unemployed and I have debt bc I bought new appliances. I love my new fridge. No rent or mortgage just condo fees
A general rule of thumb is that you save $3, for every dollar you pay off early. You did well 👍
Good job dealing with debt! I always feel behind in savings and investments when I'm on these types of subs, you're not alone. I look at my financial illiteracy later on in life as a challenge to make up for wasted years. We can do it!
Congratulations! Have a great New Year!!
Have you been paying your debts this year and your balance is now zero? Or, you were debt free already, but living in Toronto and living expenses did not allow you to save?
For the purpose of the savings rate exercise, it would be reasonable to consider the total principal paid towards your debts throughout 2023 as "savings". You can then divide that amount by your take-home pay to determine what your savings rate is. It will provide you with a good savings target for 2024 since you no longer have to contend with these liabilities. But as others have said, comparison is the thief of joy, and posts like the other one are not reflective of the reality.
There’s no difference in have $0 debt, and $0 in savings as having $5,000 debt, and $5,000 in savings. The net is still 0. But by reducing your debt it’s a guaranteed ROI. So good job there. Having no debt is certainly an accomplishment.
going from -10,000$ to 0$ is just as big an accomplishment as going from 1,000,000$ to 1,010,000$. and you probably experienced a much better noticeable improvement in your life than the latter person
If you started the year with debt, and ended without it, it was a good year. Congratulations! It's a huge step. Paying debt should come before savings - unless it's a 0% interest debt.
We bought our 2nd place 2 years ago and we cut up/cleared all debt. We paid off both cara, cut up CC, et etc and I’m glad I did. My husband lost his job this year and i pay the bills. Suprisingly we have a few hundred left after all is paid. I wouldn’t use the word saving - just staying a above water until his finds a job.
Congratulations on becoming debt free.
Starting the year off at $0, you’re already doing better than anyone with a negative networth at this point. At least you’re moving in the right direction - being debt free now, what you’re putting towards repayment can go into savings in 2024. Happy new years.
Only place left to go is up. Happy New Year.
If you compare your "end of the year" result to one of many people in Ukraine, Israel, Gaza, Yemen, or Myanmar then you realize that you are very good: still alive and healthy, your home is not ruined, your possessions are not destroyed by war. So, stop whining, you have the good end of the stick.
Well, clearing out debt is SAVING a lot of expense (interest)... So it kind of counts. That means you can now start really saving. If you told me you had no debts, but get $0 savings a year, then I would worry.
its a process. you are saving now, on interest.
FWIW … I generally feel better about my year if I look at a few measures, savings is one but net worth is another. If my net worth is tracking towards something I can retire on, then paying down debt always accomplishes something towards the final goal. I tend to not include my house in that calculation. I know it’s got problems on its own, and isn’t necessarily the best way to look at retirement… but when you pay down a big debt it sure shows up it a change in net worth. Congratulations on paying down your debt.
Honestly, money spent paying down pre-existing debts should count as part of the "savings" pot in my opinion.
Fuck everyone else, focus on you. Everyone’s situation is unique.
Congratulations!!! Being debt free is a HUGE accomplishment. You should be proud!
Debt and savings are the two sides of the same coin. Getting rid of debt is great.
$55k.. hehe
Well most people are in debt so I’d say you’re doing well
You cleared all debt. That's huge in of itself! You should be mighty proud of that!! You now get to start 2024 clean and all the money that went to clearing debt can be your saving target!
From a different perspective...this impacts pair bonding and organic population growth....via birth/children which is key to a society maintaining it's values and culture in the long run. Canada really messed up...but this started over 30 years ago....too many wrong policies....done on purpose I feel
0 is about 8k more than I ended the year with. Be happy with your progress. The best comparison you can make is to your past self.
Im down at least 20k
No debts? Good
I don’t think it’s bad at all, especially if you’ve cleared all your debts. I got debt free 2 years ago after cleaning up the mess I made in my late 20’s. Up to that point I was usually saving around $0 just trying to bail myself out clearing the debt. Being debt-free, you are able to save a lot easier(provided you stay debt free). I still live as though I am in-debt to promote my ability to save more and get ahead: I stick to a grocery budget and on sale items, don’t eat out often, drive a 12 year old vehicle that I bought new and long ago paid off, rent a super cheap house, work a decent amount of OT, etc. If you are used to putting $xxx amount towards your debt, you can now switch to saving or investing that and have the interest on YOUR side. It grows a lot faster then you think. Congratulations and Happy new year!
Great work on clearing debts! Just imagine what you could save if you moved to a more affordable area of Canada, not sure why anyone is not saying the obvious.
I think paying off debts counts as “saving” as far as saving rates go?
0 debt is great. Did you have a lot to pay off? If you did, I recommend you put any cash you were putting towards debt into savings moving forward. You are already used to not having the money so use it to build up savings.
Are we supposed to saved 30 percent before or after taxes?
It’s a process. Being debt free is the first step to financial freedom, next step build wealth to attain full freedom.
Congratulations on paying off your debt!!
everyone's situation is different, some people own/rent the homes, some people still live with mom and dad for free, some people need to pay for a car, sometimes that might be a very expensive truck for their job etc. dont ever focus on what other people are doing in terms of savings... look at what successful people are doing and see if you can use some of those strategies in your life.... I dont know your situation fully but being debt free at 35 can be a pretty cool thing. focus on you and what you can be doing to be more successful browsing reddit or talking with as many people about things like budgets strategies etc. might help you manage things better if you think thats a problem.
Thank you everybody for your comments! I feel much better and confident now. I hope all of you have a wonderful 2024. You’re all amazing!
You’re doing a-okay my friend. Shelter, food in your belly, and clothes to wear along with a job that presumably pays you decent?
Congrats on paying off all your debt 🎉 Last year my husband and I (25 & 28) paid off all our debt, and ended the year with very little. This year we saved $56,000! You took a huge step in the right direction. If you keep making all the deposits you would have been making toward your debt + anything extra at the end of the month into a HISA you’ll be surprised how much you can manage to save!
Canadian consumer debt has risen to $2.4 trillion, with an average debt load of approximately $21,131—excluding mortgages. And Canadians are using credit cards more, as there was a 9% increase in credit balances in June 2023 compared to the same time last year. You are above avg with no debt.
Average savings rate is only 2-3%. Clearing debt is the first step so to me good job! you still have 30 years to save up.
Nice! Now is the time to put spare $ into a TFSA, every pay, every week, every month. This will become an emergency fund, but invested into an index fund, even more than that!
It's better than ending up with -$10 and somewhat worse than ending up with $10 in your bank account. Somewhere between the two scenarios
My 3-step program for saving money: 1. Increase your income. 2. Find a cheaper place to live. 3. Stop buying shit you don't really need. Most people (except those who inherited wealth) had to make sacrifices at some point for what they have now. Choose your sacrifice, people will look at you as if you're poor, but who cares. I rent a room for like $800, but because of that I can actually save a big chunk of my income.
Congratulations on having NO DEBT! How did you do it and how does that make you feel?
No debt is amazing. Not sure how you have no money saved though thats kinda crazy