The Canadian Money Roadmap Who can afford all this stuff??
Aug 20, 2025
Discover the hidden reasons behind overspending and the trap of debt. The discussion reveals how social pressure and priorities influence financial choices. Explore the contrast between those who save and those who splurge, examining how household income shapes spending habits. Delve into the fear of inadequacy surrounding money, even for the financially stable. Lastly, learn about the importance of personalized financial planning to prioritize what you can truly afford.
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Visible Spending Often Hides Debt
- Many people who appear to 'afford' luxuries are actually financing them with debt.
- Equifax data shows 1.4 million Canadians missed credit payments, highlighting widespread unaffordability.
Keep Prioritizing Savings And Debt Repayment
- Continue prioritizing saving and avoiding unnecessary debt to protect your long-term finances.
- Paying down debt faster (accelerated or lump-sum payments) reduces long-term costs and future stress.
Two Incomes Can Be More Tax-Efficient
- Household structure and tax brackets can make two lower incomes more efficient than one higher salary.
- Example: two $75k earners keep about $14k more after tax than one $150k earner in Ontario.