Saving for retirement on a lower-income

EVERY DOLLAR COUNTS   Let’s face it, saving for retirement is tough work. I mean, the concept is not difficult for us to wrap our heads around but finding the money, putting it away consistently and not spending it is challenging stuff. I suspect this is the case because money is an emotional subject and it’s easy to become attached to it; we work hard for it and want to reward ourselves with it. Saving for retirement takes discipline. When you’re not relying on paycheque to paycheque for living expenses, saving some money should be easy enough. You also have options on where to put your money for retirement, into Registered Retirement Savings Plans (RRSPs), real estate properties, Tax-Free Savings Accounts (TFSAs), non-registered brokerage accounts and more. High-income earners are often advised to contribute to their RRSPs in their highest-income earning years, and rightly so. This RRSP account is optimized when you contribute money when your income taxes are the highest, so monies can be withdrawn in the future when you’re in the lowest (or lower) income tax bracket, presumably in retirement. Low-income earners probably shouldn’t follow this advice, and they probably need different financial advice altogether. Today’s post will […]

Surviving A Lower Income On Maternity Leave In Canada

  Most parents-to-be struggle with the thought of living on a lowered income or some put off having a baby altogether for fear they can’t afford a child. I survived two pregnancies and two maternity leaves and made it through the after baby financial changes to our net income. I also have to mention that my marriage survived as well. You are laughing?? Just imagine, in a matter of seconds, you have more expenses and a lower-income. I am not going to lie, this is probably going to be the hardest thing you have done in your life. Lack of sleep, no time to eat or take a shower, not to mention the financial worries but I am proud to add, an enormous sense of accomplishment. I like to think that the worst is now behind me. There are so many things I wish I knew before I had kids but here I am now and I will share with you some of my precious findings. Here are some tips on how to enjoy parenthood instead of worrying about your finances and your sanity. What are EI parental benefits? EI parental benefits are offered to parents who are caring for […]