The final month of summer came to a close and with it some below average spending amounts coupled with a three paycheck month and a surprise cheque (more on that later…). It’s months like these that make me smile!
Savings came from reduced spending with my girlfriend out of province for the month and reduced entertainment expenses. When the outdoors are so nice, the amount of free activities to partake in is incredible!
Overall, I spent $1,874.58 this month for a solid 80.78% savings rate, which is the highest I’ve ever had in a month.
How I went from every day food court guru to weekend batch cooker.
Mm… Food. There’s nothing that makes me happier than eating a delicious meal that makes my taste buds happy, my stomach feel satisfied, and my energy levels feel replenished.
My favourite meal of the day: Lunch. Trust me, I got nothing against breakfast, brunch, dinner, or dessert. It’s just the timing of lunch is so perfect. It’s really the only meal you can look forward to consistently every single day of the week. Breakfast you’re probably super groggy when you make it, dinner you just want to get over with at the end of the long day, and dessert is fun, but just an indulgence.
But lunch. It’s the one that signals: “BREAK!” It’s the perfect excuse to go for a walk, sit in the sunshine, and recharge the brain and body. Plus, it’s also one of the few meals you might be able to cheat in your favourite fast food meal without anyone else really knowing.
And that was day 1. She had resided to spending over $500 for the weekend so she could be a good friend.
Now her friends are nice people. I’ve met them, even went to school and worked closely with one of them, but their desire to give their soon-to-be-married gal pal an experience of a lifetime cost a lot. Maybe not to everyone, but to at least a few people in the group.
So let’s talk about that today with a term I like to call “financial consideracy”, which I define as being considerate to other people’s finances in the spirit of inclusivity (and yes, I know it’s a made up term).
The thing is: those things may appear bizarre to us, but it’s not bizarre to them. It’s a conscious choice they’ve made to become their best frugal selves. And for the record: we are all guilty of bizarre habits. Some people are crazy about folding clothing a certain way, or keeping their book collection meticulously alphabetized (in my youth, I also used to organize all my VHS tapes by production company. Suffice to say, no one could ever find anything but me) – and there’s honestly nothing wrong with that.
So really: we’re all a little weird. And that’s okay. I also do weird things, specifically around saving money and I welcome you to judge me because really, our oddities is what makes each of us special.
July wrapping up means summer is basically halfway done – depressing right?
The month was basically business as usual, although I saved a lot more because my girlfriend is across the country for the next 2 months on a summer gig, which means zero dating expenses. It’s bittersweet, I guess?
Overall, I spent $2095.69 this month for a solid 67.85% savings rate. Passive income for the month also hit an all-time high for me, which was great.
Let’s be real: lots of things are out of reach overnight. In all likelihood, you won’t wake up a millionaire. Your dream home won’t magically appear before your eyes. And that amazing job until retirement will likely elude you for many years. In fact, very few of us get what we want and when it comes too easy, we don’t truly appreciate it.
Things take time. The morning you wake up a millionaire, chances are that moment has been building and building for quite some time through diligence, frugality, and smart investing. And also a little bit of opportunism.
I want to start by saying I don’t feel rich. Yes, I know, a six figure salary technically puts me in the upper middle class, but with its high cost of living in the City of Toronto, it’s hard to feel that way. Just to define that relative to Ontario, upper middle class is any single income earner with an income over $108,000.
I also acknowledge the more I make, the more I’m expected to pay in terms of tax. I just didn’t think it would happen so quickly or be so progressively punishing across all other forms of income.
So let’s talk about that today: tax on the upper middle class. I think tax can be a good thing (after all, I am a public servant myself), but we should all still strive for a level of tax efficiency, just like we would when it comes to any other form of spending. Continue reading “Tax Lessons for the Canadian Upper Middle Class”