What's keeping you from saving?
Since 2008, rarely has financial news been, well, news.
People are broke so they skimp on $10,000 funerals? No kidding! Taxpayers are pissed that a good chunk of AIG’s $170 billion went to executive bonuses? In the words of Elaine Benes, get out!
And the latest from the “Oh, you think so, doctor?” files has come from the Royal Bank of Canada, whose most recent survey finds that “bills and debt” are keeping Canadians from saving their money. Yet while not shocking in the way that, say, Randy Moss’ trade back to the Vikings was last week, the transparent survey gives us a chance to ask Canucks the real question: aside from the obvious, what’s preventing you from saving?
First, a bit of background from RBC. According to the bank’s poll, 57 per cent of Canadians don’t feel they’re setting aside enough savings because of bill commitments and debt requirements.
A further 30 per cent of RBC’s participants said they’ve got “no money” left after paying their bills and debts, notes the Star. While only 12 per cent of Canadians actually increased their savings over the past two years, maybe here’s why: eight per cent of all respondents, the study found, admitted to being “impulse spenders.”
So, let’s focus on that last point. Here at MSN, we covered what consumer vices we had back in the summer – the purchases we should stop, but don’t, despite the financial ramifications.
From the comments, readers listed a number of money wasters – razor blades, morning coffee, eating out at restaurants, etc. – and these are the kind of specifics we should be focusing on when we talk about saving.
Obviously, mortgage and car payments contribute to our lack of save-ability as Canadians, but what are these other “debts” the RBC notes? It’s quite clear that, in most cases, these are our own personal consumer purchases – so what are they?
Maybe it’s clothes. Maybe it’s shoes. Heck, maybe it’s things like booze, weed or Internet porn. Our comments here can be anonymous, so let’s hear it.
Readers: what are the things you buy that prevent you from saving, when maybe you should?
By Jason Buckland, MSN Money
Posted by: Anon Ymous | Oct 14, 2021 9:34:07 AM
Booze is expensive. where have all the smugglers gone?
Posted by: Frugalite | Oct 14, 2021 9:39:37 AM
The real reason Canadians aren't saving:
2008 median income of individuals was $22 800.
The low-income cutoff for 2008 was $ 18 373.
The real reason we are not saving:
WE ARE POOR !!
The average individual is less than $ 3500 above the poverty line.
Posted by: annie nom onious | Oct 14, 2021 9:44:55 AM
how long will it take Ottawa to see all this fix the crisis here before we start worrying about other countries
Posted by: Alex Desert | Oct 14, 2021 9:49:46 AM
Although I have already graduated from university, 90% of my purchases are on Academic books and Academic journal articles. I don't buy any new items because what I have still works great, be they 5, 10 or even 15 years old.
Posted by: doing just fine... | Oct 14, 2021 9:53:11 AM
I don't do morning coffee.
I only do a nice restaurant once a week, and by the way, when I say "nice" I mean 50 bucks or under for 4 people. (So "nice" means Swiss Chalet WITHOUT drinks and dessert.)
My booze is limited to under 50 bucks. If I run out of that money before the end of the week, it's too bad for me. I have no money for anything illegal. Why? Well, it's illegal and I don't want to waste the few years I have of my life in jail.
I use razors but that's because it's much much cheaper than going to a salon for waxing.
No, my income is not big and yes, I save money at the end of the month.
Is there anyone else out there like me?
Posted by: Enough | Oct 14, 2021 9:56:11 AM
Taxes! ENOUGH TAXES! Everything goes up but our pay cheques... They (corporate america) is blind to the fact that their own employees cannot afford their own products, so who do they think will be buying the stuff that makes them wealthy in the first place?
Keep under cutting paycheques and giving the job to the lowest bidder and we will all pay for their greed. Pay for skilled labour and everyone benifiets.
Posted by: Sure | Oct 14, 2021 10:18:44 AM
30% of my gross income goes to taxes (retirement & benifits deductions), then another 12% of any purchases goes to sales taxes. My health was deteriorating and the darling medical system doesn't have a reason why, while the doctor prescribes $5/day pills that my insurance didn't cover. So I spend $400/month on dietary supliments, and another $100/month on gym costs. I also have to pay 20% of my massage, physio, and accupunture costs. Of course I don't drink coffee!
Posted by: tenacious otter | Oct 14, 2021 10:32:31 AM
To me it's easy to see how Canadians spend what they should be saving, just look in the streets, ditches, and alleys. I personally can and do save money, but it's likely due to being in the top earning years of my career for which I am well paid. I also live very modestly, a home worth well below what my income dictates I can afford. What eludes me is the question of whether or not we should be saving in the first place. To me, I believe in savings to the extent of paying bills for 3 to 6 months without income. In other words I'm still trying to figure out what all the media hype is about, when it comes to savings? So anyone that can enlighten me please feel free to tell me why the banks believe we should be saving more, for which they pay us virtually nothing in interest to bolster their reserves so that they may lend more in their fractional banking system.
Posted by: Vic G | Oct 14, 2021 10:36:32 AM
Cmon why don't Canadians save money... its because we are taxed to death... and for what. Better medical, better schooling..... BS... my daughter recentley brought home a text book that looked like it came from the dump... shes from a good school and she is a straight A student... The other issue we face of course is the raising costs of raising 4 children... Has anyone checked out how much groceries went up in the last 5 years... Inflation at our "Super Stores" is crazy and I truly believe they should be regulated on what they charge for food.... the people at Safeway and Save On are just laughing all the way to the bank.... Lastly, we spend too much time and effort on the influx of Asians to Canada... Canada wines and dines them to come over and spend their money here and are treated like royalty... There kids drive nicer cars than us adults do and they have all the money... and they get all the fricken brakes.... Mabey i should start crying "racism" and equality and my family will be treated better... I know I am going to get "shot down" for being a bigot, which I am not, but WAKE UP !!!!!
Posted by: diane10 | Oct 14, 2021 10:38:50 AM
I think a lot of us are fooling ourselves. Yes taxes are too high. However I think if we all did a comprehensive and all-inclusive listing of where every penny is spent for say three months we'd be really surprised. I tried out Quicken and am now hooked. It detailed everything for me including showing pie charts of where all my money was going. Quite shocking to say the least. It helped me to rein in expenses in consumer shopping i.e buying things I really did not need. Personally, I think that the reason most Canadians don't save is that they lack the discipline to follow a strict budget. What do you think?
Posted by: L. J. Bahn | Oct 14, 2021 10:47:59 AM
When you pay $36 in taxes on a $100 of gasoline or you have to come up with 3% more every year because Municipal and provincial goverments keep increasing taxes to pay for the pay offs to their buddies in private industries. We have to much goverment and to little say where our tax dollars go. Saving in todays market place is near impossible. The little things kill you !!! Charges that the banks add to your accounts. User fees added by goverment agencies ( extra billing by dentists doctors and other groups ) destroy our ability to save anything. Then theres always more charges on things like hydro and home and auto insurance. The list is endless !!!! We can no longer absorb the the increases from Banks , Goverment and the private sector. All of the above added up...well there you have it. No wonder we can't save !!!!
Posted by: donna | Oct 14, 2021 10:50:31 AM
I think we should all, collectively, stop saving in banks and keep our money safe by other means. Why?Because when we go to the banks to borrow money they charge us interest between 4-18 % and when we put our money for saving the same banks give us from 0.5-1.5 %. If our money doesn't work for us bu saving it in banks then it should not work for banks either. Management and employees are getting heavy bonuses and intensives out from our money and we work hard and sacrifice so many things by depositing our money in the banks and finding out that the inflation ate more then gave us in interest.
Posted by: mario | Oct 14, 2021 10:53:00 AM
Maybe if the gov didn't take 50% of my salary for taxes I would be able to save some money. At least if it stopped at 50%. Then there is GST, PST on top of that. User fees galore.
It's a miracle that I have any money left at the end of the week.
Posted by: Newbie | Oct 14, 2021 11:07:35 AM
Quit drinkning, smoking and eating out 5 days a week. Saving complete? No. RRSP. TFSA. House. Checking ccount modest sum available. $50000 credit available and have used about 2% of that at any time and paid it off when due. Borrow what you know you can pay back on time. Live within your means. Greed is a problem. As my 14 year old Nephew said to me at Thanskgiving, "I like nice things". Don't we all. Some nice things is OK. All nice things is a stretch for most. I hope he doesn't grow up to want all nice things all the time. My parents grew up during the depression and WWII. They instilled a use only what you need to use mentality in me. Took a a while for it to take hold but it did.
Posted by: paula collins | Oct 14, 2021 11:18:20 AM
notice a pattern people? We as Canadians are being sucked dry by the fat cats in Ottawa period!
We have been telling them for many years that the system doesnt work for the average Canadian
only the most wealthy.corporate welfare on the backs of the poor working class.They don't care because it doesn't affect them. Try raising two kids on a pink collar wage! Welfare never I would go hungry first and have many times I might add.
Its time we played hard ball with these gov. fat cats and take back our country. Our prime minister
is a joke,but really the joke is on us. look what happened during the G7 summit our rights were swept away pretty quick. Why because they are afraid if we all stood together we could force change in the government. Shame on us all for doing nothing while the wolves are in the hen house.
Posted by: Rain | Oct 14, 2021 11:19:45 AM
when we were younger every extra penny went to pay off the mortgage.....then we saved and saved and saved.....we laugh at our clothes as many items go way, way back. We choose to not be comsumers, shopping is not a passtime. We never eat out,or go to movies. Our big ticket item every year is a long mexican holiday! I work part time and that money is holiday money--so that dictates our plans. We eat well at home and i do splurge on a gym membership (well used). Every extra penny goes to savings. Hubby has an average job, no huge wages here.
I have never had a pedicure, manicure or anything more than a haircut at a salon.
It's what you choose to do with what you have.
We live in a great country.....I don't mind the taxes.
Posted by: Marvin Degner | Oct 14, 2021 11:38:48 AM
What Canadians need it a real form of democratic government. The pigs in eastern Canada just get bigger every year and the tax's go up to support this at the federal,provinical,local md's. It's all about money and greed living beyond our needs. Yes! I agree with the comment inregards to why do we have money in banks with the low interest rates and high borrowing rates etc. This has been a concern of mine for years and my parnets when I was a child for gosh sakes!! Maybe our education system might consider educating their students about money management and learn to manage and save for a rainy day.
There is and will be many problems plagueing Canadians for years to come because of the way we have aloud society to become!! There is no accountability for anything these days.
Posted by: anon | Oct 14, 2021 12:07:29 PM
So who is lending them the money to be so much in debt? Could it be the bank who is so concerned about the lack of savings?
Posted by: sylvia | Oct 14, 2021 12:07:42 PM
We all like nice things, but you also have to live within your means as some other individuals have said. My husband used to live paycheck to paycheck before we got married, afterwards I became in charge of our budge, spending accounts. Now, we live on 50% income and save the other 50%. As my husband says, he knows what groceries, and other items are on sale as I don't buy anything unless it is on sale. This way we have the 20% for a downpayment on a house, our school debts have been paid off, and everything is possible, but you have to be FRUGAL. We both have become accustomed to this lifestyle and know how we can save and will continue to save our money.
Posted by: Robyn Flaro | Oct 14, 2021 12:18:25 PM
I am just tired of all the taxes that are supposed to make our lives better. I am sick of immigrants coming in getting a paycheck, getting a check to go to school to "re-educate" them and taking a job because they are a minority, it's crap! I am a minority, no one paid me to go to school, I earned my postion and I take pride in my work. I am sick and tired of government employess taking all of our money and then trying to justify in time for elections, thanks for scrapping the eco fees mcGuinty, good job do you want a pat on the back for that? How about giving us a break and easing up on all your travels, giving to other countries, stuffing corporate pockets etc. How about we look after the canadians first, including the immigrant who came here and earned a living without help from the government and then if there is money left over, which according to you there is not, get rid of the HST. We don't need to be paying anymore. I am sure maybe if you did some job cuts in the government we could save at least 10% of the 13% of the hst, oh but wait that would mean governement employees would have to get there own coffee, buy their own vehicle to get to work, fly in regular planes, regular seat and have no perks like the rest of us! Oh and another thing, why not start with supporting the family structure, but lowering the gas prices on holiday weekends instead of raising them. Then maybe we too would actually be able to travel and visit family without it costing a fortune.