According to a recent Statistics Canada study, one out of five Canadians has saved over $350,000 for their retirement. That means, there are still four other Canadians that obviously have less than $350,000 saved.
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So, let’s talk about what to do if you have low income or maybe the occasional no-income situation and are finding it hard to save. What can you do to budget and save for future expenditures, let alone a retirement fund
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It is much harder for those impoverished to improve their situation than it is for those in our middle-class, especially today. Today, many are struggling to just put food on the table, and don’t know how they could ever manage to save since they are struggling every month.
That being said, there are many who have much more drive, determination and fortitude than some who have money. I can guarantee you: many low-income Canadians struggle with a lot more hardships that most middle-class Canadians would never be able to endure.
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Poor people, especially single parents, have a lot of challenges and not having enough money for ordinary things that others take for granted causes many in poverty to make decisions that are necessary at the moment, not having the luxury to save for the future.
So, what tricks and tips can someone with low income do to find money to save. Simply telling you to say “no” more often is not the answer, since I am sure you already do this more often than you would like.
What about if I tell you to make more sacrifices, commit to a budget, hold yourself accountable, sell your possessions or start collecting your loose change in a jar? That won’t do either, will it?
The real answer to life-long saving and improving your situation right now is in this statement: “The fastest way to save more money is in your ability to earn it.”
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Now, I know most of you will say that’s too simplistic and you would rather give me you an investment product or money scheme to try instead – but honestly, this is the only way to improve your situation. You must believe in yourself and believe in your ability to earn more income.
The fact is you are only making the income that “you feel” you are worth right now. You could be earning more, but instead it is you that has chosen to accept your lot in life, and it is you that believes you are only worth what you currently have and what you currently earn.
I know that sounds harsh, but you must agree, that if you believe you are only worth minimum wage, then that is all you will make.
For those in comfy careers – you too are only earning what you believe you are worth and no more. This is what you have convinced yourself and your employer you are worth. If you believed you’re worth more, you would earn more. You would do everything that it took to make a higher wage, you would change employers, take courses and walk with the confidence and a demeanour that says, “I’m worth it.”
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That is the difference between high-income earners and low-income earners. Yes – I know that education, training and skills have a lot to do with it too, but there are a lot of people who have multiple university degrees, and they are not working in their field of study, but rather working for a fraction of what they are worth and doing a job that just pays the bills.
Conversely, there are people who have very little education, but have a massive drive to succeed. They educate themselves, they believe they are worth more and they absolutely refuse to be kept down by anyone.
You can earn whatever you want in your lifetime, but you first must increase your productivity and your performance and create a decisive goal setting plan.
Be specific, strategic and always optimistic. I want you to reprogram your thoughts and stop saying “I can’t” because you totally can. It doesn’t matter what happened in the past – dump it from your mind and make sure you never run back there. Instead keep moving forward and plan to make the right changes for 2024 to challenge yourself for more.
Written by Christine Ibbotson, author, finance writer, national radio host, and now on CTV Morning Live and CTV News @6 syndicated across Canada. Send your money questions, answered free, through her website at askthemoneylady.ca
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