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A couple that makes $20k/mo will live a comfortable life in Toronto, Canada. Let me walk you through it $20k per month is $240k a year. Let’s say each person makes $120,000 per year In Ontario: Federal tax: $18,812.49 Provincial tax: $10,128.16 CPP contributions: $4,055.50 EI premiums $1,049.12 Net pay: $85,954.73 per person per year or $7,162.89 per person per month. Who are we talking about? A couple. No kids. For a couple: Net pay: $171,909.46 per year or $14,325.79 per month. What does “comfortable” mean? Let us say you are: - not living pay check to pay check - filling retirement accounts - paying for food, clothing, shelter, transportation Let us start: TFSA (equivalent to U.S. Roth IRA): $7,000 per adult per year, or $14k per couple per year total. But each person contributed $21,600 to their RRSP, paid $30,000 in tax, and had a refund of $8,900 which they used for their TFSA with $1,900 per person to spare. RRSP (equivalent to U.S. 401k/403b): $21,600 per adult, or $43,200 total per couple. For retirement (TFSA & RRSP): $43,200 per year or $3,600 per month. Let’s move to shelter: A 1b1b condo in Toronto costs $720,000. This should be affordable for a gross household income of $240,000 per year based on the 20/30/3 rule for buying a home: 1. 20% down 2. Shelter costs less than 30% gross household income 3. Shelter price less than 3x gross household income If no downpayment the couple needs to find $144,000 for downpayment, $13,275 land transfer tax (assuming first time home buyer otherwise $21,750) and legal. $162k+ Minimum. Monthly mortgage is $3,400 per month (20% down, 5.1% interest, 25 year amortization) Plus: Utilities Insurance Property tax Landscaping Maintenance Capital expenditures You get the picture. If non-recoverable shelter cost is 2% this is $14,400 per year or $1,200 per month. Let’s keep it simple and say that shelter equivalent is $4,600 per month Next add the following: Groceries: $1,000/mo Car: $1,000/mo (includes monthly payment, maintenance, insurance, gas) We are at $10,200 per month. ($3,600 retirement + $4,600 shelter + $1,000 food + $1,000 transportation) Now add: $200/mo Emergency fund $200/mo. Phone & Internet $400/mo Eating out $200/mo Entertainment $500/mo Clothes, Fitness, Grooming, Travel Total of $1,500 We are at $11,700 per month. This couple has $2,700 per month to spare and can consider having a child and/or a second car. Statistics Canada calculated that raising a child from birth until the age of 18 years of age will cost $1,400 per month. This excludes saving for the child’s post-secondary education in an RESP. In short to live a comfortable life in Toronto with adaquate contributions to retirement, money for shelter, food, clothing, transportation, entertainment, and a future that may include having a child, a couple needs to make $20k/mo. Otherwise we just decide to sacrifice, and live without something listed above. Get financially literate. You got this! 🙌

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Happy 4th of July Independence Day! Today, here’s a reminder of how much American Taxpayers spend on US Congress It costs an estimated $2 billion+ per year from taxpayers for Congress to operate, yet we can’t even get them to pass Voter ID: - Salary $174k - $7.6 million per year for meal reimbursements - The MRA, the members reprisational allowance is $810 million - MRA broken down is $1.5 million to each Congress Rep - Majority and Minority leadership get $37 million just for them - Actual Budget can range around $2 million per member, though some suggest it might be closer to $5 million when including all expenses - Operational Costs: $750 million for House expenses and $250 million for Senate expenses Conservative estimate total cost $1.5 million to $2 billion per year This was from a couple years ago, if you can believe it, the numbers have gone UP. Here’s the new data - Salary $174k (leadership is more) - Meal reimbursements/lodging roughly $7.6 million - The MRA (Members’ Representational Allowance) is $850 million - MRA broken down averages $1.9 million per House Member - Majority and Minority leadership get roughly $37 million, varies depending on data you look at - Actual per-member costs range around $2 million just for MRA, salary, support - The real cost per Representative is closer to $5+ million when including all allocated expenses and staff Operational Costs: $2+ billion for House and Senate operations. Conservative estimate for broader total cost is $2–7 billion+ per year

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