@foshnizzle This with a sweet budget vacation every year. Travelling the world and seeing new things and experiencing new places is an absolute privilege and source of joy if you follow your passions (hiking, beach, new city, whatever calls to you). If you can keep your lifestyle similar but add like a $1800-3000 vacation each year as a reward I feel like that’s a way easier way to control lifestyle creep than like eating out and shopping more in your day to day!
@tsomnlie Dude you are only 24. You need to live a little. I’m not saying go blow $74k a year but you should spend some money on yourself and experiences. Enjoy these young years. To continue living like you make 32k age a year would be crazy.
@big_love You’re right he’s young and should be enjoying life. Especially because he’ll have less financial concerns than friends not making as much yet. But let’s not forget these are the formative years that will probably determine his spending and savings habits for his future. I’m not doing badly but I know plenty of friends who are way ahead of me because they started preparing for the future at a young age.
@kolsen So if OPs net pay goes from 28k to 65k (for example), they can live like they net 40k and still save 25k a year.
Also important to note that their mandatory pension deductions of nearly 10% are matched by the employer. And the fund isnt a cash account but it will pay a Def Ned benefit pegged to inflation in retirement.
And this pension contribution on their end reduces their RRSP room so they need to be careful not to over contribute.
@tsomnlie The fact you were already doing so well on minimum wage makes me fairly confident you won't lifestyle creep. Just don't go take out a car loan .
@tsomnlie In his book Just Keep Buying, Nick Maggiulli suggests that most people should be fine if you spend up to 50% of wage increases and save (invest) the other 50%. If you spend more than 50% you may be delaying retirement. Of course, it varies by person. If you haven't read it, I highly recommend it, it's a great book. This section explains nicely why some lifestyle creep is okay, and talks about the importance of rewarding yourself a bit, as other commenters have said!
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