A bit of a funny question, but it was spawned through this article (found by clicking here). Although the article is based on an American Study I believe it’s pretty accurate here in Canada as well.
Through my experience as a financial planner here in Langley, BC I do see people that seem to have their finances in order and seem to be happy. I would definitely agree that somewhere in the $75,000 range is a great household income. It may need to be slightly higher here (just due to our cost of living and housing) but it’s a good starting point. The people in this income bracket tend to have the ability to save for their future (increasing their comfort level) and be able to satisfy their needs in life.
As the article says (and the study it talks about is here), it doesn’t mean that once you earn $75,000 per year as a household that you’ve “made it” but it does mean that you will not be as stressed about money each month in the same way you were if you were earning $50,000 during maternity leave or in a previous career.
What about people who make far more? What’s my experience there?
I can say that I have many clients who earn far greater than $75,000 and it’s amazing to see how their spending habits change. It seems that everyone has the same needs (we want shelter, food, safety, etc) but the people who earn that much more just purchase more expensive forms of those needs. Part of my job as a Certified Financial Planner is to help people see where they are spending too much and encourage them to save more for their future.
I think that the article above is a great read and would highly recommend you take a skim through it. It may change the way you think about your income.
Travis Strain
604-308-6030
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