View From The Glen

Thursday, April 1, 2010

Not Adding Up

The Bank of Canada is recommending that Canadians put aside 20% of their gross income for retirement.

Those same experts suggest spending up to 30% of your gross income on a mortgage is acceptable.

Let's say taxes average around 35%.

That leaves most of us around 15% of our gross income for other minor things. You know, bills, food, extra-curricular activities, cars, gas.

And what is left? Not much.

So when I read that if you want to get ahead in business you need to dress the part, and spend 5-10% of your gross income on clothes, I just laughed.

Something doesn't add up.

Maybe the talking heads who come up with this stuff should try living in the real world for a bit first.

I have never in my life spent $3000 a year on my own clothes, let alone double that. I'm not sure I spend that much per year on clothes for the entire family!*

Of course, I hate shopping (except for books) so perhaps that has something to do with it.

*although with Erik growing approximately an inch a week (hyperbole), it doesn't feel that far off sometimes

1 comment:

Leanne Haines said...

None of it makes sense. It does scare me how much more I am going to have to spend on Connor now that he is growing out of "kid size" clothes. I just spent $35 on sneakers for him today -- size 6, last size before mens sizes. I've never spent that much on sneakers for him -- hopefully they will last longer than the typical 3 months!