Save. Spend. Splurge.

Thoughts: Big Spenders and their spending

This article from Toronto Life seems to have really struck a nerve with Canadians everywhere.


Here are my random thoughts:


I can understand his lifestyle. I think at one point I may have flirted with a lot of spending close to what he has done (although no $7000 bacchanals for me), I have spent a lot on clothes for instance.

It is actually kind of brave to put that kind of financial position and free spending out there and be judged for it.

Just because you can spend it though, doesn’t mean you should. See Point #4 below.

It is also his parents who pay for rent and food and so on, and if they’re happy doing it, who are we to rain on their parade?

They may dread being Empty Nesters.. or just don’t see him as an adult yet.

*shrug* It is their lives.


True income?

If we can believe sleeping 5 hours a night, let’s say he puts in a 60-hour work week (around 10 hours a day, working the weekends too).

50 weeks x 60 hours a week (accounting for 2 weeks of vacation) = 3000 hours a year

$130,000 / 3000 hours a year = $43.33 an hour

With a normal workweek of 2000 hours it is really:

2000 hours x $43.33 = ~$86,667

There, feel better?

Update: He admits to 60-hour work weeks. Guess I was spot on in my guess.


I am actually in the same age range and financial position.

I was in the bank the other day getting some business done, and I casually asked a banker what I would get as a pre-qualifying mortgage if I was interested.

She and I sat down for about half an hour, and she printed out a paper for me that I was approved at the lowest rate possible up to a $600,000 mortgage.

Me, qualifying for that.


All by myself, without my partner’s assets, credit score, whatever. 

With his assets, we could have well over a million in debt, signed over to us by a bank without a blink of an eye.


I told her I’d think about it.

I wasn’t really keen on getting a mortgage at all and would rather clear it in cash, but it might be nice to have a cushion.

(I really only plan on paying $300,000 max out of my savings for a home anyway.)


“..chunk of my $80,000 savings”


*screeching halt*

Cue face: O_o

Then again, he is only 31 and has not been a pharmacist long and he does have 4 more years to sock away another $50,000 based on this age to savings chart.

Still, I would just be careful about the spending and do a little more saving.

At least maxing out your RRSP ($23,400), TFSA ($5000) which is $28,400 in total.

Assuming he graduated when he was 23, and he has been saving for 8 years…

8 years of working x $28,400 = $227,200 – $5000* = $222,000

(*The TFSA was only implemented in 2009.)

I just feel like $80,000 is pretty low versus what he could have saved, but then again he has been traveling, drinking and eating it .. so that makes sense, even with the higher amount of disposable income each month (no family, parents paying for household living).

I am also a PF freak, so.. let’s take that into account.

If I were him, I’d look less at the salary amount as being the be-all and end-all, and focus on the net savings banked each year.

(I hope it is invested well too. Index funds. Read my Guide to Your Money if you’re interested.)


I should know. I’ve been there AND DONE THAT.

He talks about how spending all that money was shocking at first but then became de-sensitized to all of it.

I hope he scales back and realizes at some point it doesn’t need to be wild and crazy spendy all the time to be fun.

I myself am struggling with this spending lark, but ever since I stopped working, I am trying to be less stressed with Baby Bun and NOT SHOP as a hobby, I have been pulling back slowly and kind of proud of exercising my will to not spend.

It also helps that I have re-discovered vintage shopping.

Also, he has a lot of disposable income but that is because he doesn’t pay rent ($1500), so he’s spending that money instead of saving it, which would be the smart thing.


  • Xin

    Living with one’s parents is just about the only way for one of my peers to get particularly ahead on their student loans. I sometimes wish it was possible for me/that my mom lived in an area where there was a robust large law firm job market! A very small number of my friends and classmates are able to do that, and it is an immense help. (They’re all very responsible types who are either saving the money for a down payment on a property of their own or, most likely, paying down their loans as quickly as possible – it’d likely halve the time they need to complete repayment.)

  • J.Joy


    Sorry for the unrelated question.
    I’d like to buy shoes from M.Gemi and I know that you have a few pairs. I called the company and was told that they don’t ship to Canada–how did you get yours delivered?
    The shoes are LOVELY!

  • Taylor Lee @ Yuppie Millennial

    I would recommend being preapproved for as much as possible (assuming you maintain a low rate). You may choose to never use it, but it can come up during negotiations that your preapproval is borderline (in which case they may choose another buyer). Or you might decide you’d rather invest your money for 5 years or whatever before your rate resets. Just a thought.

    • Kathy

      Being pre-approved for that amount is one thing, but I would never tell a real estate agent I was approved for that amount. Instantly you request for a top of budget at $400,000 gets ignored because after all, you can’t get anything you want for less than $550K.. It is obviously in their best interest (not yours) to get you to spend as much as they possibly can.

      But to the article, as you said….it is his money and he should reap the rewards or pay the consequences of managing it however he wants. As long as when he goes broke, he doesn’t look to the taxpayers to pay his way.


      I honestly would never buy what I cannot clear in cash. The mortgage was just an idea but I hate paying interest, period.

      • SarahN

        Agree to disagree – the interest is annoying, but capital gains is the offset. It’s not a sure thing. But it has and does happen.

        I feel like a diversified portfolio needs shares and property. Having a cash bought property and shares of a similar proportion is not realistic for most people without loans (mortgage or for the shares).

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