City Living Expenses: The Dilemma of James, a Process Engineer
James, a 34-year-old process engineer hailing from the small northern town, finds himself grappled with the financial struggles of city living in Mississauga. Transitioning from a life of modest costs to the financial demands of Greater Toronto Area, his steep rise in rent has led to a drastic fall in his savings rate. From previously shelling out merely $850 on rent and saving over $3,000 monthly, he now pays a hefty $1,910 for a two-bedroom flat, reducing his savings to a meagre $1,700 per month.
Living in Discomfort Alongside Wealth
Living alongside a garbage chute in an old building with peeling paint and outdated flooring is not conducive to comfortable living. However, James is trapped by the steep city rents. Even contemplating a move raises anxieties about a potential $800 increment in rent. His annual income of $87,000 – which hasn’t seen an increase since his move to the city – and absence of debt makes this issue more complicated.
Financial Security and Dreams
Over the years, James has made diligent savings which includes $109,000 in stocks, $101,300 in a tax-free savings account (TFSA), and $98,200 in a registered retirement savings plan (RRSP). However, his financial resilience is tested by his dreams of owning a house, starting a family and a potential trip to Japan. Even thinking about spending on the Japan getaway wracks him with guilt despite his strong wishes to visit the Asian country.
Navigating Finances in Unstable Times
James tries his best to handle his finances well; he conscientiously contributes towards his TFSA and RRSP, takes care of his living and transport costs, and manages to make provisions for food, drinks and other miscellaneous costs like his soccer league expenses and hobbies. Besides managing his finances, he actively participates in city council meetings, advocating for more affordable housing in Mississauga. Despite all his efforts, the high living expenses in the city put a strain on his current financial status and future dreams.
