In this blog, I like to share facts and snippets on the Living Wage in Canada and my own philosophy and lived experiences on financial matter. The end goal is to give my readers new financial perspectives: to see money as a tool, instead of something to be engrossed over. By doing so, career realization and goals can be attainable.
The Concept of a Living Wage
Living Wage Canada is a federally incorporated non-profit network that calculates the living wage per community using a 35 hour work week. It is based on what people need to earn in order to cover the basic cost of living in their community without government financial intervention.
Let's Break down the Living Wage in numbers
Please note that I will be including expense facts through my own community located in Calgary, Alberta. However, it can also be used as an accurate guideline to how you can calculate basic cost of living in your own community.
$23.70 X 35 (Hours per week) = $829.5 X 4.34 (Weeks in a month) = $3,600.00
According to the Turbo tax calculator with a yearly salary of $43,200.36:
After-tax income | Total income | $43,200 |
Federal tax | $3,565 | |
Provincial tax | $1,913 | |
CPP/EI Premiums | $3,066 | |
Total tax | $8,544 | |
After-tax income | $34,656 | |
Average tax rate | 12.80% | |
Marginal tax rate | 25.00% |
There you have it! According to Living Wage Canada, $2,888 is the average spending power for one person living in Calgary, Alberta.
What is basic cost of living expenses?
According to SoFi, living expenses is defined as, Housing, Food & Beverages (excluding restaurants), Clothing, Healthcare, Transportation, and "Other Expenses."
Rent:
According to Zumper, the median rent for Calgary = $2000.00. A huge factor would include what your living tolerance is. For example, bachelor one bedroom, studio space, basement, etc.
Groceries:
According to CareerBeacon, average groceries in Alberta for one person = $497.00. As a family of 5 like myself, it jumps as high as $1200.00.
Clothing:
According to CareerBeacon and Study Alberta, the average cost for clothing is $50.00 (I assume if you are shopping at a thrift store?)
Extended Healthcare Coverage:
Depends on employment and whether or not you pay into a group plan. If not, the average cost for non-Group coverage in Alberta is $63.50 for a single person.
Car Insurance:
According to Think Insure, Average cost of car insurance in Alberta = $1,578 depending on age, driving experience, speeding and accident record it can range anywhere from $2,400 to $4,600.
My philosophies on Financial matters
It's a no brainer to some but, make sure you budget according to your monthly wage
Remember to reward yourself when you are meeting your financial goals
Understand your own financial risk tolerance
Do not compare yourself with others as you do not know their risks and liabilities
Do not be fixated on retirement savings
Do not fall for the get rich quick schemes
Financial budgeting is a life-long learning process
When your Dream Job becomes a Nightmare
"Without financial stability, those who are fortunate enough to pursue their dream job may quickly realize their job is going towards a downhill slope."
If you follow The Ramsey Show, you will quickly realize that it isn't how much money you make that will make you happy, but how you manage your financial assets given the career path you have chosen.
Money as a tool
If an average person spends 90,000 working hours in a lifetime, it's going to be more important to to pursue a career path that aligns with your abilities and interests well.
"We are not guaranteed a tomorrow."
Just as your Identity is more than your job, don't forget that life is more than just material gains. By shifting the way we view money, work-life goals can be realized.
Learn more through Holistic Career Coaching
Are you ready to make your career goals a reality through holistic career coaching?
Yules Chan (BFA, CWS, CCS) is a CPC registered career development professional in Calgary who is motivated in providing holistic excellence by finding your hidden genius through the world of employment.
For more information go to Brilliant Person Career Coaching or call +1 (403) 891-2673 for a 15-minute complimentary consultation. We provide both in-person and online services.
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