When the cost of nearly everything is on the rise it can be difficult for young Canadians to imagine putting money aside for wants, rather than solely for needs.
However, spending on the 害羞草研究所榝un害羞草研究所� things in life isn害羞草研究所檛 an impossible reach for Millennials and Gen Z, say experts 害羞草研究所� it might just require sacrifice and a new outlook.
害羞草研究所淲hat we害羞草研究所檙e used to in the past is completely different from what we害羞草研究所檙e seeing today,害羞草研究所� said Barry Choi, a personal finance, travel and millennial and generation Z money expert at moneywehave.com.
害羞草研究所淏eing able to travel and eat out while affording life comfortably is becoming harder and harder, and combined with the FOMO a lot of people might get from what people are posting online, it害羞草研究所檚 understandable that so many young people feel they害羞草研究所檙e falling behind in savings and fun.害羞草研究所�
Succumbing to this kind of pressure 害羞草研究所� oftentimes from multiple sources, including family members and socially ingrained ideas of 害羞草研究所榮uccess害羞草研究所� 害羞草研究所� is something 34-year-old Montreal resident Jesse Kennedy said he has had to work through over the past several years.
While in his 20s, Kennedy worked various jobs in Prince Edward Island害羞草研究所檚 restaurant industry. Throughout those eight years, his paycheques and tips found their way out of his grasp almost as soon as they fell into it.
害羞草研究所淏ecause it was a cash-based gig, I would walk into a clothing shop and drop 350 bucks on a couple of pairs of pants and some shirts, and wouldn害羞草研究所檛 even think twice about it,害羞草研究所� said Kennedy. 害羞草研究所淚 figured I could just make it all again the next weekend.害羞草研究所�
However, as time went on, Kennedy realized he would need to make some serious changes if he wanted financial stability. He went back to university, worked multiple jobs at a time to pay off outstanding debts, and managed to buy a condo in Charlottetown 害羞草研究所� all while finding a way to still save and spend on fun.
害羞草研究所淭hankfully, I was in a province that had a lower cost of living and gave me the opportunity to do all these things,害羞草研究所� he said, 害羞草研究所渂ut for me, it was really a matter of realizing what was important to me in that time, managing my expectations, and making my money decisions based on that.害羞草研究所�
Choi echoed this sentiment, stressing that the most important aspect of spending on fun is realizing what is realistic given one害羞草研究所檚 circumstances and managing one害羞草研究所檚 expectations accordingly. Spending on things like travel, entertainment and eating out is certainly possible, but exactly how much one spends on those things is almost entirely up to the individual.
害羞草研究所淚f you live in a big city, like Toronto or Vancouver, you害羞草研究所檙e going to need to put more money towards living expenses,害羞草研究所� he said. 害羞草研究所淎nd if you want to buy a house earlier on, then you害羞草研究所檙e also going to need to prioritize accordingly 害羞草研究所� because the simple reality is that every time you spend on something fun, it takes away from putting it towards something you need.害羞草研究所�
According to Choi, that means understanding that one may not be able to go on a vacation once a year like their parents did, or eat out twice a week like their wealthier friends might be able to 害羞草研究所� but that doesn害羞草研究所檛 mean the average young Canadian has to miss out entirely.
害羞草研究所淓ven if you害羞草研究所檙e only saving a small amount for the fun stuff, something like $50 a month can get you a really nice vacation after two or three years,害羞草研究所� he added.
In fact, he emphasized the importance of attaining the kinds of experiences that are only possible while one is young 害羞草研究所� like travelling extensively without the stress of a full-time job, or going out on weekends without having to worry about child care.
害羞草研究所淔inding ways to get the experiences you want 害羞草研究所� is a great way to go about making sure you don害羞草研究所檛 miss out on life just for a bigger RRSP,害羞草研究所� said Choi.
Seeking out paid positions abroad or being smart with discounts on entertainment and restaurants are two things Choi recommended. However, he added that finding a way to make one害羞草研究所檚 hobbies cheaper is probably the best way to go.
害羞草研究所淚f you like eating out, that害羞草研究所檚 great, but maybe a more budget-friendly thing for a foodie would be learning how to cook,害羞草研究所� he said. 害羞草研究所淏ut of course, it always comes back to what害羞草研究所檚 most important to you and what you will and won害羞草研究所檛 cheap out on.害羞草研究所�
This is something Kennedy has taken to heart, especially in the current early years of his finance career. While he has definitely made sure to cut down on frivolous spending and chosen hobbies that cost little, he said he has still managed to find ways to splurge on what害羞草研究所檚 important to him 害羞草研究所� including a trip to Bali, where he was able to meet his partner害羞草研究所檚 extended family.
害羞草研究所淭he trip was pretty expensive, but I wouldn害羞草研究所檛 change it, because we both had this amazing experience that we could probably only do in this time frame of our lives, and was equally affirming because it was the first time I let myself do something like that from a financial standpoint,害羞草研究所� he said.
害羞草研究所淪o I think it really comes down to what you害羞草研究所檙e going to get from what you害羞草研究所檙e spending 害羞草研究所� tangibly, but also emotionally.害羞草研究所�
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