More and more Canadians living paycheque to paycheque (and people are also living paycheck to paycheck in America)
The results of a new survey released by the Canadian Payroll Association were quite frankly alarming.
- Almost half of people polled said they are Canadians living paycheque to paycheque and would find it difficult to meet their financial obligations if their pay was delayed by just a week resulting in their not receiving their paycheque on time
- Less than 25% of respondents said they could probably not come up with $2,000 if an emergency arose within the next month
- 36% per cent of working Canadians said they felt overwhelmed by their level of debt
- 12% per cent doubted they’ll ever be debt free
- 75% of working Canadians polled reporting having put aside less than 25% of the money they expect to need in retirement
- 35% of respondents expect to work longer
- 20% of employees surveyed said they will need to work four years or more than they originally expected before retiring, citing a lack of sufficient savings as the main reason
How to stop living paycheque to paycheque – behaviour modification
Although this situation is nationwide, it’s worse in Ontario, British Columbia and Atlantic Canada. Can the Canadians living paycheque to paycheque problem be cured with a change in spending habits? According to BMO’s 2015 Psychology of Savings Report, it is.
The report shows a majority of Canadians, or 88% of respondents polled, said they are willing to improve their current financial status. However, 38% also admitted that they have developed bad spending and savings habits and 31% said they’re not willing to let go of them.
Consult your Vaughan bankruptcy trustee
As professional trustees we recognize and preach the importance of a balanced budget. In fact we published two blogs on the subject.
- A Balanced Budget is to Financial Health What a Balanced Diet is to Physical Health – Part 1
- A Balanced Budget is to Financial Health What a Balanced Diet is to Physical Health – Part 2
If you’re like many Canadians living paycheque to paycheque, it’s time to put an end to the constant struggle. Contact Ira Smith Trustee & Receiver Inc. today. We can help to restore you to financial health with a balanced budget and a plan for healthy financial living Starting Over, Starting Now.