this post was submitted on 25 Nov 2024
43 points (95.7% liked)
Personal Finance Canada
1198 readers
1 users here now
Come and discuss anything related to personal finance, directly or indirectly, with other Canadians!
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Sorry if this sounds blunt but if you need 250$ while making >= 150 000$ then there must be a serious money leak in your budget. 250$ in a year should be really easy to recover if you absolutely need it. Cancelling a subscription like Netflix, downgrading your phone plan, lowering the heating in the winter by a degree will all very likely result in > 250$ in savings per year. That's 20$ per month.
Eh, that's fine, and I know how it sounds, but I feel there's a lot of assumptions being made about my living conditions 😜.
Well here is your soapbox to educate us on how a person exists day to day where they make 150k but $250 more is "needed".
I'm not going to dump all my personal details on here, but if you think for a minute where rent is >1500/mo, or housing is over 1M, or how the more you make gross, the less you net due to tax brackets, it shouldn't be that hard to figure out. You also need to consider not everyone is just an individual and needs to support themselves. Everyone's life is different.
Lastly, 150K CAD does not go very far these days. It sounds like a lot but with the costs of everything now, it's not that much.
150k of goods today was worth 252k in the year 2000, so costs have increased a lot.
https://www.bankofcanada.ca/rates/related/inflation-calculator/
And since the year 2000, housing has gone up 5x as much. Not to mention everything else.
The more you make gross the less you net due to tax brackets?
I dont think you understand how tax brackets work.
Are you one of those people who think if you make a little extra and go into the next tax bracket, all your previous income will be taxed at that new rate?
Unless you're in some wildly unqie tax situation, if you make more gross, your net will always increase.
I understand how it works. But the extra income on each bracket is taxed at a higher rate, so the gross is definitely impacted more the higher you are. If you were taxed only at the lowest bracket rate for 150k you'd have a lot more to show for it.
Ah, gotcha! 100%. I've had conversations with people who were convinced that by working a few extra hours or getting a raise would result in them netting an overall lower amount than of they hadn't - they didnt understand that the new tax bracket only applied to the money they made within that new bracket.
I see what you're saying though - the extra money isnt quite as much as it would be of you were in a lower bracket. That $10k raise might only net you $6k instead of $8k.
For what its worth, I'm all for that - I think the more you make the more you should contribute to society. But that's an entirely different discussion!
I agree, the more you make the more you should contribute. The problem is wages and brackets stayed the same while costs have gone up. Buying power has declined year over year.
I guess the surprising thing is that depending on the province, a gross salary of $150k nets well over $350 or so per day (before union dues, CPP, benefits, etc). Ultimately though, $250 is less than a day’s work.
Like, I get that you might be supporting a kid or 5, and maybe live in an expensive city, and that $150k doesn’t support that. Canada is fucked right now, and that’s not lost on anyone. But if that’s the case then $250 is like a squirt gun on a forest fire.
This is exactly what I am getting at. Also I think others might not consider that them and their partner are clearing that together. The over 150k I'm referring to is household income.