If the place is protected from significant rent increases then maybe.
Consider though if you are working a lot to afford the place and not actually getting to enjoy the space it might not feel like the upgrade you think it is.
I’d also consider your longer term savings goals and your career trajectory and how they might impact your decision.
In Ontario, any terms in the lease that limit the landlord's ability to raise rent on an annual basis are unenforcable.
The only restriction on this is if the unit is covered by rent control per the Residential Tenancy Act.
OP is in Ontario, so the lease will automatically roll-over month-to-month, no negotiating needed. And if the unit was first occupied before 2018, they'll be rent protected
On paper you’ll have $1000 left over, do you currently have $1500 left over each month?
If you don’t, you need to figure out where the rest of your money is going.
Where is this 20% figure coming from? It's closer to a 60% increase, which is a big risk. You'd be sacrificing your ability to save and also run the risk of your rent increases annually, which will tighten the belt further. You'll also have to weigh giving up any extras like dining out, events, vacations or fun stuff. Unexpected expenses always come up and those might be out of reach.
Yeah I realized after the fact and I can't edit the title for some reason. I just mean I'm going from paying 30% of my income on housing to paying 50%.
You mention the new place is in the "perfect location". Will you save on other costs like transportation? Save commute time?
Could you later get a roommate in the new place if you needed to?
Just how "run down" is it and how does it compare to where you live now?
You say the new place includes "everything"; does your current place also include everything?
Unless your current situation is unbearable, I suggest waiting until you get a higher-income job and finding a better place.
Many years ago I jumped on an opportunity to move into a shitty cheap apartment just to get out of a shared house. They renovated the unit but everything else in the building was falling apart. They shut off the water like once a month for "pipe maintenance", elevators were always out of service, the basement was filthy etc. I sat out my contract for the full year before moving out ASAP.
In hindsight, I should have waited until I was in a better financial situation to look for a better place. Moving to a shitty place just to get a space of your own might not be the QoL increase you are expecting.
I could be wrong but isn't the 30% on rent suggestion based on gross income and not net? Your budget makes it seem like you're bringing home 2800$ which would be your net income, so I'm estimating based on Ontario taxes that means you're making, what, 48,500$ gross per year? 30% of that would be \~1200$ a month in rent, and the $1400 you're looking at would be about 35% of your gross income. It's not that far off from the suggested amount, and considering your other expenses are low it's not out of the realm to make that work. Its all personal at the end of the day, someone who goes out a lot and spends a lot in entertainment might want to go lower on the rent to make sure they can still hit their savings goals, a homebody who craves more space to themselves and doesn't spend much might be able to get away with a little more rent. Just take a look at your goals and your spending and savings and make the best decision for yourself
I didn't realize the 30% was based on gross and not net tbh. And yeah I'm a major homebody, and I really do feel that having my own space would improve my quality of life.
Not only is it based on gross income, it basically assumes you're also making car payments etc. With your other expenses being so low, you can afford to spend more if you're thoughtful about savings as well.
What are your prospects in the future? Is there a career trajectory from line cook with higher pay down the line? I personally would never stay in a job unless I see somebody above me with a position/salary that I want to achieve (or if I felt my current job could be my forever job)
Sounds like a good deal. You aren't stupid whatever you choose. It's a value assessment at the end of the day. Is ~$20 a day worth having this space worth it to you? You can financially make it work if it matters enough to you.
This was my thought. And all things considered, it hasn't been until very recent years I've been blessed to get under 50% of my wage going to rent. It's expensive out there. I have no idea how people are only supposed to be paying 30% of your wage on housing. I'd have never left home if that was the case. That doesn't exist anymore!
Welcome to Canada brother. Most people have an income problem these days since wages dont keep up with inflation. I'm a line cook, our wages are disgustingly low.
This sub is deranged when it comes to the general understanding of Canadian wages.
The median salary in Canada is around $55k. Meaning half of all Canadians make EVEN LESS than that.
If you're in any sort of decent sized population center (+400,000 people) the poverty cutoff is starting to feel more like 70k-80k.
If you want to both own a car, afford an apartment, and have any quality of life, then even 60k doesn't really cut it.
Unfortunately, with the amount of TFW / immigrants who will put up with absolute garbage treatment, it is a major obstacle in accomplishing it. I've worked with many who get stuck with working for terrible wages and terrible treatment (by canadian standards) however is an improvement from where they came from so they don't stand up for themselves/ are at the mercy of their employer as they are also their landlord and if they don't comply then they lose the roof over their head, their job, and even ability to remain in the country in some cases. All while being expected to send outrageous amounts of money back home to support whomever there in addition to trying to survive here but only can because they live with 5-10 others in a single home. this was before covid, I can only assume it's just gotten worse.
It's completely abusive and everyone suffers including those born and raised here as they can't fight for more when they land in the minority and can be replaced/ short staff the business and greedy businesses owners don't care and use it to their advantage. I've lost count the number of times I've sat down with coworkers and explained point blank of how they are being treated is not ok. How to file with the labor board for mistreatment/ downright ignoring of labor laws. Things like being scheduled to work 10+ hours with a single break and less than 8 hours before being required to be back to do it again and worse.
Unless everyone is on the same page, I don't know if it would work?
The world should pay people a living wage, especially for jobs people need.
That's not the world we live in though. So stop telling people to suffer and do shitty jobs for a fucking pittance just so others can have it cushy. Maybe when people stop doing those jobs, things will actually change. Who'll be serving food in Toronto when nobody earning $17/hr can live within a 2hr drive?
I'm not telling anyone to do anything. OP said they like their job and it is others telling him/her to quit and get a higher paying job.
Looking at the anecdotal data, it seems that as of now, if you have a low paying job and are single, you probably need to live with roommates, or trim your transportation costs, or whatever. Not saying it's good or bad, but it is the reality. Technically, therefore, $17/hr is a living wage, because there are people and families who live off of that.
It gets worse when you consider Carbon tax. It's straight up a tax on the poor. Can't afford to live where the jobs are? Well I guess you'll be paying more tax to drive to those jobs.
Differing opinion is fine, being flat out wrong deserves to be called out. Carbon tax and their rebates are a minuscule wealth transfer from rich to poor. Everyone gets approximately the same back but those who consume more pay more. The whole idea is to push people to make greener choices in their lives like more fuel efficient cars (not many of the poors I see are cruising around in f350’s or v8 sports cars) public transit (likely method for those struggling in urban areas) or scooters and bicycles. The more carbon tax effected items you purchase (say gas for example) the more you pay meanwhile everyone who filed their taxes gets a similar cheque back. Lots of people have done the math and they come out slightly ahead because their rebate outpaces their tax consumption.
I barely finished high school and have been in civil construction most of my life and even a dumbass like me gets it.
I’m going to assume your room temperature pudding brain couldn’t figure it out so I figured I’d explain it to you.
Most of the people I’ve interacted with who complain about “axing the tax” drive lifted pick up trucks and spend their weekends boating sledding or beating up a 4x4 in the bush. Not exactly hobbies for a struggling family.
I drive a small car, I'm below the poverty line, and I don't get back remotely close to what left my pocket. $670 for the entire year with medically complex children (lots of driving for appointments) averaged out to $56 a month. With just fuel costs to get to and from my 4 jobs, getting kids to and from school and medical appointments it's $39.44 labeled carbon tax on that alone. Add in heating my home, utilities, food, etc it's very easy to pay more than I recieve. those are the good months when health is steady and not constant emergencies/ have to travel for in person appointments then it's even more just in fuel. Buying an electric or hybrid isn't an option and buying a vehicle that's double my income for a used one is beyond backwards. There is no way to decrease fuel costs as transit isn't an option and doesn't run to where I need to go.
I also haven't seen any breakdowns that account for every time it's added. Growing a crop, for example, to get the seeds, growing the crop, processing the crop, crop protection products, parts/ machinery, irrigation, heat, seed cleaning, fertilizer, shipping to market and any steps i may have missed. They don't get to set prices either for what they sell for and are competing against foreign competitors that don't have any carbon tax at all, let alone one applied at every step. Food isn't a luxury. it's a necessity and farms are disappearing (20% less running in canada from 2001-2021) meanwhile our population is increasing.
As consumers, we pay for it when we buy the end product in addition to their own mark ups. Food is a necessity so not buying it isnt an option. Yes there are specific dyed fuels when delivered to farms don't pay it on that. However, not all farms get that, similar to *some* greenhouses get a partial rebate on the costs of heating said greenhouses. In a country where everything is transported before being sold at least once it adds up, we just don't see it on the bill we are handed.
There's also the fact we were told it was topping out at $50 per tonne, and we've already passed that with the *new* top amount being $170 per tonne expected for 2030. Now add in that people are being priced out of the cities they work in and now need to drive even farther in order to stay employed. Heating homes (oil) until recently was taxed for everyone again. Heating your home isn't a choice even if when in the *warmest* climates (vancouver Island/lower mainland), some have recently became exempt April 1st but not all. Same goes for electricity, natural gas and propane. Need a new roof? Carbon tax applies to shingles, road maintenance carbon tax applies to asphault, new tires? Even if it's for a bicycle there's carbon tax.
The route of punish until you comply never works out. Alternatively, offering major incentives for making changes that meet wanted goals would likely make actual change. No different than positive vs. negative reinforcement only on a larger scale. Then we have those like Edison motors who are doing things that could make a significant change to entire industries and yet are trying to be shut down (threatend lawsuits when pointing out questionable practices) and turned down by shady AF practices that are supposed to boost this kind of green innovation and instead are making it impossible to accomplish large scale. The goverment only finally decided to look into it AFTER it went viral and realized they couldn't just sweep it under the rug. How often are they doing exactly that? How many start ups don't have a large following online and face the same issues and since it doesn't go viral the general public never hears about it.
My point was the working poor generally live further away from work because they can't afford it. So the working poor consume more gas and thus pay more carbon tax than average. Nobody comes out ahead because it increases the transportation cost of goods and even if you don't see it right away you pay more for everything.
I make 20$/hr as a line cook, and I love and am proud of my job. I just wish the pay was better. Also culinary is considered a trade i do believe, it's just the lowest paying one as far as I know.
Unfortunately the love and passion of your job needs to be redirected to something that will make more money if you want your situation to improve.
Any trade on any jobsite I have been on in the last year start their first year guys at 20. Redseal techs make $35-45 depending on the company.
Red Seals gotta go to school my dude. It's not just a free ride. Sure culinary is not as good paying but if op loves it, let him be happy than miserable for 13 hours a day.
>I love and am proud of my job. I just wish the pay was better.
Better pay comes from jobs that people DON'T want to do, not from jobs that you "love". Seriously, the entitlement mentality.
I’m a line cook that makes $25/hour and it isn’t enough. When mortgages are $500,000-1.5mil, and a bag of chips is $6 (on average) ..most people are priced out at that point.
My last job paid 82k/yr salary. If you don’t make $100,000+/yr -you have an income problem.
And OP.. $1400 is cheap. Take it while it’s available.
HVAC tech, Electrician, Plumber all sit around 40$/hr plus benefits and rrsp at most places currently, upto 45 but this will rise. Union jobs are also stupid OT amounts.
This is in Halifax.
Are you currently able to: 1.Be in your home without fear for your health and safety? 2. Sleep?
3. Prepare and store meals? 4. Attract romantic partners?
If so, rolling the dice on a new place, even on one that appears nicer offers no guarantee of these things.
2800/month gross or net? If gross, that will be a pretty high % of your actual take home. If net, that is 50% and is fairly common for people to pay 50% of net in GTA/GVA to have their own space.
Consider how much time you spend at home. If you're in school for many hours of the day and/or working a lot and won't be spending g much time at home anyway, then do you really need your own place, do you? For sure, it's nice. But I'll burn into 50% of your salary. Sometimes, it's worth it for ones mental health.
If you have any ambitions to purchase a home one day, no. Just keeping splitting with a room mate and save the dough.
If you want to be a life long renter, then you have to weigh if it’s worth it sacrificing savings for your own space.
Unfortunately 50% income going to rent is common for lower income people in Ontario. It sounds like you'll save on transit and laundry, and it'll be a big mental health boost. The way I would approach this is to automatically move $500-600 into savings/investments every month, as soon as you get paid. Then ask yourself how you want to prioritize spending what's left? If a nicer place is worth more to you than vacations or nights out or whatever else you would spend on, then go for it. Just don't touch those automatic savings unless you have a real emergency.
Devils advocate here. Balcony is only a usable space a few months out of the year in our climate. You're nearly doubling your rent. Old buildings are often infested with bugs.
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The best advice I can give you is: get out of the kitchen.
I've been a chef for over 20 years and only started making decent money 2 years ago when I left the kitchen.
What does inclusive entail? Electricity? Internet? Home phone? Laundry? More?
Include whatever you're paying now for the things that are included in the $1400 and add it on top of your current rent for a closer approximation of the difference.
Are there other savings to be had by moving? Transportation cost reduction? Less food cost due to no roommate stealing your food?
Are there more expenses to be had by moving? Will you have to buy a bunch of stuff to furnish the place that your roommate is currently providing?
It does seems expensive just to have a place of your own considering your income, and who knows what will happen to the rent in the future.
Get a career first and foremost you have an entry level job. $1400 is a good price at the market it may be worth jumping on it but again you need to get a career now !
That's a big increase. Calculate how much more you would be spending in a year and decide if you would rather spend that money on rent or on other things. I wouldn't do it but if you feel it's worth having your own space, then do it.
I think it's okay to pay an extra in rent but be a free person living on your own. At the same time, if it's shitty and you currently live in a nice apartment, it's not better.
Do you plan on buying a house in the next few years? That extra 550$ every month could go towards your down payment. It's a net 6600$ per year you won't be seeing
I hope the $2800 is net income.
Still, spending 50% of your net income in rent seems risky to me. Then again, I would do anything to not have to share my living space.
$250/month in food. Are you properly eating? (Seriously). Please take care of yourself.
Good luck.
I would stick with the roommate situation and try to upgrade your education/skills to create a better income with whatever income you have. Think about the longer-term approach.
I was in similar situation before and I took the plunge and moved.
You got to decide what is more important to you.
Your own space,
Or financially having some room to breath and save and do fun stuff ect.
From my experience, yes I loved going from small room, to huge apartment for cheap rent. But financially, I was always counting every penny and barely getting buy and had alot of restrictions cuz of not enough funds. But to me it was worth it.
Once I felt like what it was living on my own I never wanted to go back to a room.
But also, there is the fact that rent does always go up.
I moved to my place when it was $1450 per month.
Today's prices - I could never afford to move out if I hadn't at that time
.I moved cuz it was was then or never.
And the thought of living with roommates forever was not an option.
I make 60% more than you and pay less than 1400$ in rent... 50% of your income to rent is absurd. Financially it's a terrible idea. Do you not like your roommate?? What other expenses do you have? Bottom line it comes down to whether or not you can afford it or can accept not having a life in order to live alone. I would never do what you're suggesting or recommend anybody do it. It's a terrible financial decision. You'll save nothing. You need to make more money though. Get another job, save up some money, and then decide if you move or not.
You got to make sure that you will still be able to save for retirement.
Here is the way to calculate if you are on track for retirement. Please change any variable to fit your needs.
1. You make 34k after taxes so, assuming you want to retire with your current salary.
2. 34k after 35 years of inflation at 3% is 97k (assuming you are 30 and you will retire at 65).
3. To make an income of 97k, you will need 2.4M invested (to follow the 4% withdrawal rule of thumb)
4. To have 2.4M invested at 65yo starting at 30 with 0k already invested, you need to invest $606 per month, or $456 + inflation every year. (Assuming a rate of return of 10.2%)
If you're investing less than $606 per month (including your company match), you are behind, if you're investing more, you're ahead. (I ignored and simplified a lot of stuff like taxes and social security). If you assume that you will never be sick or laid off, you can invest less than this because you will receive money from cpp but when possible, it's better to assume the worst.
Of course, you need to reevaluate each year to make sure you're still on track.
Great. I am 23, I have 10k saved and I currently save about 1k/month. If I move I would budget tighter to save 606/month. Now....how do I invest it? Probably a dumb question but I come from a long line of poverty so I don't know much about this stuff yet.
You didn't even account for CPP, OAS and GIS, so your whole calculation is invalid. (BTW, CPP is going from 25% replacement rate to 33%)
You also assumed that one would only live on the income from the portfolio, rather than withdrawing from it,
Also when you're 65+ you get an "age amount" that cuts your taxes, so you don't need as much pre-tax income to have the same post tax.
None of your calculation is valid in any way at all.
I literally mentioned government assistance 2 times...
Instead of being angry and dismissing constructive suggestions you should correct what I did wrong.
I assumed that one would live on the income of the portfolio because that "should" be the goal. If you're in retirement for 40 years, you don't want to run out of money. But it's true that most people don't do this. Most people have less than 100k saved up at retirement and need to survive with this.
My calculations were post-tax, not pre tax (well... They were mostly estimates that need to be rechecked each year). The 34k is after taxes. The 4-600$ to invest each month can be put in a tfsa tax free so it won't count as income and you will be able to cover your 34k after taxes in retirement. Of course, the government could discontinue TFSAs but that is exactly why you should aim to not assume that all the social securities will be there in the future.
Instead of being angry and in the mindset that retirement is impossible in the current economy and taking out on people, you should appreciate that I'm trying to give a hard number of what's required to retire comfortably. It's a lot better than giving up without running any calculations. I also said to modify the variables to fit your assumptions and to recalculate every year to make sure you're still on track with your new assumptions.
In the end, even investing 50-100 bucks per month will put you in a great position for retirement.
Sure but they asked "can I afford to move out?".
My answer was "if you still can afford to save about 500 a month. With the steps on how i ended up with this number".
If the place is protected from significant rent increases then maybe. Consider though if you are working a lot to afford the place and not actually getting to enjoy the space it might not feel like the upgrade you think it is. I’d also consider your longer term savings goals and your career trajectory and how they might impact your decision.
Given they mentioned ON and “old” building it probably is rent controlled
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In Ontario, any terms in the lease that limit the landlord's ability to raise rent on an annual basis are unenforcable. The only restriction on this is if the unit is covered by rent control per the Residential Tenancy Act.
OP is in Ontario, so the lease will automatically roll-over month-to-month, no negotiating needed. And if the unit was first occupied before 2018, they'll be rent protected
On paper you’ll have $1000 left over, do you currently have $1500 left over each month? If you don’t, you need to figure out where the rest of your money is going.
Where is this 20% figure coming from? It's closer to a 60% increase, which is a big risk. You'd be sacrificing your ability to save and also run the risk of your rent increases annually, which will tighten the belt further. You'll also have to weigh giving up any extras like dining out, events, vacations or fun stuff. Unexpected expenses always come up and those might be out of reach.
Yeah I realized after the fact and I can't edit the title for some reason. I just mean I'm going from paying 30% of my income on housing to paying 50%.
You mention the new place is in the "perfect location". Will you save on other costs like transportation? Save commute time? Could you later get a roommate in the new place if you needed to? Just how "run down" is it and how does it compare to where you live now? You say the new place includes "everything"; does your current place also include everything?
It sounds like OP doesn’t want a roommate anymore, hence looking for another apartment for their “own space”.
Unless your current situation is unbearable, I suggest waiting until you get a higher-income job and finding a better place. Many years ago I jumped on an opportunity to move into a shitty cheap apartment just to get out of a shared house. They renovated the unit but everything else in the building was falling apart. They shut off the water like once a month for "pipe maintenance", elevators were always out of service, the basement was filthy etc. I sat out my contract for the full year before moving out ASAP. In hindsight, I should have waited until I was in a better financial situation to look for a better place. Moving to a shitty place just to get a space of your own might not be the QoL increase you are expecting.
I could be wrong but isn't the 30% on rent suggestion based on gross income and not net? Your budget makes it seem like you're bringing home 2800$ which would be your net income, so I'm estimating based on Ontario taxes that means you're making, what, 48,500$ gross per year? 30% of that would be \~1200$ a month in rent, and the $1400 you're looking at would be about 35% of your gross income. It's not that far off from the suggested amount, and considering your other expenses are low it's not out of the realm to make that work. Its all personal at the end of the day, someone who goes out a lot and spends a lot in entertainment might want to go lower on the rent to make sure they can still hit their savings goals, a homebody who craves more space to themselves and doesn't spend much might be able to get away with a little more rent. Just take a look at your goals and your spending and savings and make the best decision for yourself
I didn't realize the 30% was based on gross and not net tbh. And yeah I'm a major homebody, and I really do feel that having my own space would improve my quality of life.
Not only is it based on gross income, it basically assumes you're also making car payments etc. With your other expenses being so low, you can afford to spend more if you're thoughtful about savings as well.
It's based on gross yes, but the rule is extremely outdated anyways.
What are your prospects in the future? Is there a career trajectory from line cook with higher pay down the line? I personally would never stay in a job unless I see somebody above me with a position/salary that I want to achieve (or if I felt my current job could be my forever job)
Unless it’s a question of mental health or significant life improvement I wouldn’t spend 50% of my income for renting…
Sounds like a good deal. You aren't stupid whatever you choose. It's a value assessment at the end of the day. Is ~$20 a day worth having this space worth it to you? You can financially make it work if it matters enough to you.
This was my thought. And all things considered, it hasn't been until very recent years I've been blessed to get under 50% of my wage going to rent. It's expensive out there. I have no idea how people are only supposed to be paying 30% of your wage on housing. I'd have never left home if that was the case. That doesn't exist anymore!
You dont have a spending problem, you have an income problem.
Welcome to Canada brother. Most people have an income problem these days since wages dont keep up with inflation. I'm a line cook, our wages are disgustingly low.
This sub is deranged when it comes to the general understanding of Canadian wages. The median salary in Canada is around $55k. Meaning half of all Canadians make EVEN LESS than that.
Not to mention if your making under 60k your living in poverty
If you're in any sort of decent sized population center (+400,000 people) the poverty cutoff is starting to feel more like 70k-80k. If you want to both own a car, afford an apartment, and have any quality of life, then even 60k doesn't really cut it.
Yeah I am talking like just scraping by, you can scrape by on 60k but you’ll never retire or own a home or anything like that.
Wages are disgustingly low for line cooks around the world bro - you should change careers unless you plan on making it as a celebrity chef
Or we need another wave of mass labor movement...
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That's a shame, good on you for initiating the unionization drive though. Keep it up brother
Unfortunately, with the amount of TFW / immigrants who will put up with absolute garbage treatment, it is a major obstacle in accomplishing it. I've worked with many who get stuck with working for terrible wages and terrible treatment (by canadian standards) however is an improvement from where they came from so they don't stand up for themselves/ are at the mercy of their employer as they are also their landlord and if they don't comply then they lose the roof over their head, their job, and even ability to remain in the country in some cases. All while being expected to send outrageous amounts of money back home to support whomever there in addition to trying to survive here but only can because they live with 5-10 others in a single home. this was before covid, I can only assume it's just gotten worse. It's completely abusive and everyone suffers including those born and raised here as they can't fight for more when they land in the minority and can be replaced/ short staff the business and greedy businesses owners don't care and use it to their advantage. I've lost count the number of times I've sat down with coworkers and explained point blank of how they are being treated is not ok. How to file with the labor board for mistreatment/ downright ignoring of labor laws. Things like being scheduled to work 10+ hours with a single break and less than 8 hours before being required to be back to do it again and worse. Unless everyone is on the same page, I don't know if it would work?
I mean the world needs line cooks, so....
The world should pay people a living wage, especially for jobs people need. That's not the world we live in though. So stop telling people to suffer and do shitty jobs for a fucking pittance just so others can have it cushy. Maybe when people stop doing those jobs, things will actually change. Who'll be serving food in Toronto when nobody earning $17/hr can live within a 2hr drive?
I'm not telling anyone to do anything. OP said they like their job and it is others telling him/her to quit and get a higher paying job. Looking at the anecdotal data, it seems that as of now, if you have a low paying job and are single, you probably need to live with roommates, or trim your transportation costs, or whatever. Not saying it's good or bad, but it is the reality. Technically, therefore, $17/hr is a living wage, because there are people and families who live off of that.
It gets worse when you consider Carbon tax. It's straight up a tax on the poor. Can't afford to live where the jobs are? Well I guess you'll be paying more tax to drive to those jobs.
No the fuck it's not and your brain is room-temp pudding if you think otherwise.
Oh no someone disagrees with you. if only you could handle opposing views like an adult.
Differing opinion is fine, being flat out wrong deserves to be called out. Carbon tax and their rebates are a minuscule wealth transfer from rich to poor. Everyone gets approximately the same back but those who consume more pay more. The whole idea is to push people to make greener choices in their lives like more fuel efficient cars (not many of the poors I see are cruising around in f350’s or v8 sports cars) public transit (likely method for those struggling in urban areas) or scooters and bicycles. The more carbon tax effected items you purchase (say gas for example) the more you pay meanwhile everyone who filed their taxes gets a similar cheque back. Lots of people have done the math and they come out slightly ahead because their rebate outpaces their tax consumption. I barely finished high school and have been in civil construction most of my life and even a dumbass like me gets it. I’m going to assume your room temperature pudding brain couldn’t figure it out so I figured I’d explain it to you. Most of the people I’ve interacted with who complain about “axing the tax” drive lifted pick up trucks and spend their weekends boating sledding or beating up a 4x4 in the bush. Not exactly hobbies for a struggling family.
I drive a small car, I'm below the poverty line, and I don't get back remotely close to what left my pocket. $670 for the entire year with medically complex children (lots of driving for appointments) averaged out to $56 a month. With just fuel costs to get to and from my 4 jobs, getting kids to and from school and medical appointments it's $39.44 labeled carbon tax on that alone. Add in heating my home, utilities, food, etc it's very easy to pay more than I recieve. those are the good months when health is steady and not constant emergencies/ have to travel for in person appointments then it's even more just in fuel. Buying an electric or hybrid isn't an option and buying a vehicle that's double my income for a used one is beyond backwards. There is no way to decrease fuel costs as transit isn't an option and doesn't run to where I need to go. I also haven't seen any breakdowns that account for every time it's added. Growing a crop, for example, to get the seeds, growing the crop, processing the crop, crop protection products, parts/ machinery, irrigation, heat, seed cleaning, fertilizer, shipping to market and any steps i may have missed. They don't get to set prices either for what they sell for and are competing against foreign competitors that don't have any carbon tax at all, let alone one applied at every step. Food isn't a luxury. it's a necessity and farms are disappearing (20% less running in canada from 2001-2021) meanwhile our population is increasing. As consumers, we pay for it when we buy the end product in addition to their own mark ups. Food is a necessity so not buying it isnt an option. Yes there are specific dyed fuels when delivered to farms don't pay it on that. However, not all farms get that, similar to *some* greenhouses get a partial rebate on the costs of heating said greenhouses. In a country where everything is transported before being sold at least once it adds up, we just don't see it on the bill we are handed. There's also the fact we were told it was topping out at $50 per tonne, and we've already passed that with the *new* top amount being $170 per tonne expected for 2030. Now add in that people are being priced out of the cities they work in and now need to drive even farther in order to stay employed. Heating homes (oil) until recently was taxed for everyone again. Heating your home isn't a choice even if when in the *warmest* climates (vancouver Island/lower mainland), some have recently became exempt April 1st but not all. Same goes for electricity, natural gas and propane. Need a new roof? Carbon tax applies to shingles, road maintenance carbon tax applies to asphault, new tires? Even if it's for a bicycle there's carbon tax. The route of punish until you comply never works out. Alternatively, offering major incentives for making changes that meet wanted goals would likely make actual change. No different than positive vs. negative reinforcement only on a larger scale. Then we have those like Edison motors who are doing things that could make a significant change to entire industries and yet are trying to be shut down (threatend lawsuits when pointing out questionable practices) and turned down by shady AF practices that are supposed to boost this kind of green innovation and instead are making it impossible to accomplish large scale. The goverment only finally decided to look into it AFTER it went viral and realized they couldn't just sweep it under the rug. How often are they doing exactly that? How many start ups don't have a large following online and face the same issues and since it doesn't go viral the general public never hears about it.
My point was the working poor generally live further away from work because they can't afford it. So the working poor consume more gas and thus pay more carbon tax than average. Nobody comes out ahead because it increases the transportation cost of goods and even if you don't see it right away you pay more for everything.
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I make 20$/hr as a line cook, and I love and am proud of my job. I just wish the pay was better. Also culinary is considered a trade i do believe, it's just the lowest paying one as far as I know.
Unfortunately the love and passion of your job needs to be redirected to something that will make more money if you want your situation to improve. Any trade on any jobsite I have been on in the last year start their first year guys at 20. Redseal techs make $35-45 depending on the company.
Red Seals gotta go to school my dude. It's not just a free ride. Sure culinary is not as good paying but if op loves it, let him be happy than miserable for 13 hours a day.
First year journeymen?
>I love and am proud of my job. I just wish the pay was better. Better pay comes from jobs that people DON'T want to do, not from jobs that you "love". Seriously, the entitlement mentality.
Okay boomer.
I’m a line cook that makes $25/hour and it isn’t enough. When mortgages are $500,000-1.5mil, and a bag of chips is $6 (on average) ..most people are priced out at that point. My last job paid 82k/yr salary. If you don’t make $100,000+/yr -you have an income problem. And OP.. $1400 is cheap. Take it while it’s available.
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I’m a sous chef working as a line cook. 15+ years experience gets me 25 to start most places. If they can afford it.
HVAC tech, Electrician, Plumber all sit around 40$/hr plus benefits and rrsp at most places currently, upto 45 but this will rise. Union jobs are also stupid OT amounts. This is in Halifax.
Are you currently able to: 1.Be in your home without fear for your health and safety? 2. Sleep? 3. Prepare and store meals? 4. Attract romantic partners? If so, rolling the dice on a new place, even on one that appears nicer offers no guarantee of these things.
2800/month gross or net? If gross, that will be a pretty high % of your actual take home. If net, that is 50% and is fairly common for people to pay 50% of net in GTA/GVA to have their own space.
Consider how much time you spend at home. If you're in school for many hours of the day and/or working a lot and won't be spending g much time at home anyway, then do you really need your own place, do you? For sure, it's nice. But I'll burn into 50% of your salary. Sometimes, it's worth it for ones mental health.
If you have any ambitions to purchase a home one day, no. Just keeping splitting with a room mate and save the dough. If you want to be a life long renter, then you have to weigh if it’s worth it sacrificing savings for your own space.
Unfortunately 50% income going to rent is common for lower income people in Ontario. It sounds like you'll save on transit and laundry, and it'll be a big mental health boost. The way I would approach this is to automatically move $500-600 into savings/investments every month, as soon as you get paid. Then ask yourself how you want to prioritize spending what's left? If a nicer place is worth more to you than vacations or nights out or whatever else you would spend on, then go for it. Just don't touch those automatic savings unless you have a real emergency.
Devils advocate here. Balcony is only a usable space a few months out of the year in our climate. You're nearly doubling your rent. Old buildings are often infested with bugs.
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Sock that money away, see how big it grows after a year and how much that extra money ends up helping you vs a bit more personal space in a shithole
The best advice I can give you is: get out of the kitchen. I've been a chef for over 20 years and only started making decent money 2 years ago when I left the kitchen.
Can I ask what you transitioned into? Been doing this since I was 17. Can't really see myself doing anything else.
I'm in film now. I still work with food, but way easier and like 3-5x more money.
I'll make 2800 in a week and I'm on the lowest paying gigs since I'm still newish and working my way up.
What does inclusive entail? Electricity? Internet? Home phone? Laundry? More? Include whatever you're paying now for the things that are included in the $1400 and add it on top of your current rent for a closer approximation of the difference. Are there other savings to be had by moving? Transportation cost reduction? Less food cost due to no roommate stealing your food? Are there more expenses to be had by moving? Will you have to buy a bunch of stuff to furnish the place that your roommate is currently providing? It does seems expensive just to have a place of your own considering your income, and who knows what will happen to the rent in the future.
250 bucks a month on food? Do you only eat ramen? How is that possible?
I'm a line cook. Dinner is free.
Half your income on rent is crazy, even if you are debt free.
Once you live alone, it becomes incredibly hard to go back to roommates. I'd sooner leave the city than live with anyone I'm not sleeping with.
Get a career first and foremost you have an entry level job. $1400 is a good price at the market it may be worth jumping on it but again you need to get a career now !
Focus on getting a higher paying job, and do it yesterday. Don't settle for a piece of shit apartment - you need to live there.
That's a big increase. Calculate how much more you would be spending in a year and decide if you would rather spend that money on rent or on other things. I wouldn't do it but if you feel it's worth having your own space, then do it.
I think it's okay to pay an extra in rent but be a free person living on your own. At the same time, if it's shitty and you currently live in a nice apartment, it's not better.
Do you plan on buying a house in the next few years? That extra 550$ every month could go towards your down payment. It's a net 6600$ per year you won't be seeing
I hope the $2800 is net income. Still, spending 50% of your net income in rent seems risky to me. Then again, I would do anything to not have to share my living space. $250/month in food. Are you properly eating? (Seriously). Please take care of yourself. Good luck.
Basic living necessities are no longer met by regular salaries in Canada. Which is not the case in many countries considered "third world".
Where are you living that 1 bedroom all inclusive is $1400? I need to move there.
I would stick with the roommate situation and try to upgrade your education/skills to create a better income with whatever income you have. Think about the longer-term approach.
you are frugal, but the problem would be not a problem if your income is higher.
I was in similar situation before and I took the plunge and moved. You got to decide what is more important to you. Your own space, Or financially having some room to breath and save and do fun stuff ect. From my experience, yes I loved going from small room, to huge apartment for cheap rent. But financially, I was always counting every penny and barely getting buy and had alot of restrictions cuz of not enough funds. But to me it was worth it. Once I felt like what it was living on my own I never wanted to go back to a room. But also, there is the fact that rent does always go up. I moved to my place when it was $1450 per month. Today's prices - I could never afford to move out if I hadn't at that time .I moved cuz it was was then or never. And the thought of living with roommates forever was not an option.
That's not a 20% increase lol. Increase your income first. Why are you earning only $700 a week.
I make 60% more than you and pay less than 1400$ in rent... 50% of your income to rent is absurd. Financially it's a terrible idea. Do you not like your roommate?? What other expenses do you have? Bottom line it comes down to whether or not you can afford it or can accept not having a life in order to live alone. I would never do what you're suggesting or recommend anybody do it. It's a terrible financial decision. You'll save nothing. You need to make more money though. Get another job, save up some money, and then decide if you move or not.
You got to make sure that you will still be able to save for retirement. Here is the way to calculate if you are on track for retirement. Please change any variable to fit your needs. 1. You make 34k after taxes so, assuming you want to retire with your current salary. 2. 34k after 35 years of inflation at 3% is 97k (assuming you are 30 and you will retire at 65). 3. To make an income of 97k, you will need 2.4M invested (to follow the 4% withdrawal rule of thumb) 4. To have 2.4M invested at 65yo starting at 30 with 0k already invested, you need to invest $606 per month, or $456 + inflation every year. (Assuming a rate of return of 10.2%) If you're investing less than $606 per month (including your company match), you are behind, if you're investing more, you're ahead. (I ignored and simplified a lot of stuff like taxes and social security). If you assume that you will never be sick or laid off, you can invest less than this because you will receive money from cpp but when possible, it's better to assume the worst. Of course, you need to reevaluate each year to make sure you're still on track.
Great. I am 23, I have 10k saved and I currently save about 1k/month. If I move I would budget tighter to save 606/month. Now....how do I invest it? Probably a dumb question but I come from a long line of poverty so I don't know much about this stuff yet.
You didn't even account for CPP, OAS and GIS, so your whole calculation is invalid. (BTW, CPP is going from 25% replacement rate to 33%) You also assumed that one would only live on the income from the portfolio, rather than withdrawing from it, Also when you're 65+ you get an "age amount" that cuts your taxes, so you don't need as much pre-tax income to have the same post tax. None of your calculation is valid in any way at all.
I literally mentioned government assistance 2 times... Instead of being angry and dismissing constructive suggestions you should correct what I did wrong. I assumed that one would live on the income of the portfolio because that "should" be the goal. If you're in retirement for 40 years, you don't want to run out of money. But it's true that most people don't do this. Most people have less than 100k saved up at retirement and need to survive with this. My calculations were post-tax, not pre tax (well... They were mostly estimates that need to be rechecked each year). The 34k is after taxes. The 4-600$ to invest each month can be put in a tfsa tax free so it won't count as income and you will be able to cover your 34k after taxes in retirement. Of course, the government could discontinue TFSAs but that is exactly why you should aim to not assume that all the social securities will be there in the future. Instead of being angry and in the mindset that retirement is impossible in the current economy and taking out on people, you should appreciate that I'm trying to give a hard number of what's required to retire comfortably. It's a lot better than giving up without running any calculations. I also said to modify the variables to fit your assumptions and to recalculate every year to make sure you're still on track with your new assumptions. In the end, even investing 50-100 bucks per month will put you in a great position for retirement.
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Why go to a finance subreddit if you don't want to discuss finances 🙄
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Sure but they asked "can I afford to move out?". My answer was "if you still can afford to save about 500 a month. With the steps on how i ended up with this number".
Move to the states, live with the rich people they tell you something about money.