Ottawa man in his 20s saves for home ownership while handling financial pressure
He puts $800 monthly into his TFSA and $170 toward an interest-free student loan while living in a basement apartment.
OTTAWA · A man in his mid-20s living in Ottawa is saving for a home while feeling pressure from peers and media about the future of work. Grant, who works in government relations for a utility company, has $5,650 in a savings account and $22,000 in a tax-free savings account. He says his biggest financial worry is home ownership, describing it as a big looming thing that makes him feel if I'm not doing the right things now, it will never happen. Grant adds that his generation has been fed the idea that there are going to be no jobs, a sentiment fueled by news about artificial intelligence replacing workers.
He allocates $800 from his monthly pay to his TFSA, noting he still has a lot of contribution room from entering the workforce later after graduate school. Another $170 goes toward paying down the interest-free federal portion of his student loan, a strategy he calls going low and slow. Grant and his girlfriend share a two-bedroom basement apartment downtown, with his portion of the $2,200 monthly rent being $1,100. He pays $80 for electricity, while his partner covers gas, and water is included in their lease.
Other monthly expenses include $42 to help with his partner's car maintenance and $15 for transit, as they live centrally and walk often. He spends $25 on Uber rides, which he says are weirdly cheap in Ottawa, and $60 on alcohol for social occasions. Grant budgets $150 for going out, calling it by far, the hardest part of my budget to police. He and his partner treat themselves to a $150 dinner three or four nights a year, but otherwise limit outings to a drink or an appetizer, not both.
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Streaming services cost $55 monthly for a Bell bundle, a shared Sportsnet account and splitting DAZN for football with his partner. He spends $30 on apps including Spotify, a Globe and Mail subscription and Apple storage. Grant allocates $50 to sports for summer rugby and winter pickup hockey, and $60 on hobbies like a weekly card game and backpacking gear. His cellphone is covered by a family plan, for which he says, Thanks, Mom, and he budgets $13 monthly for occasional sports betting.
Grant made early financial choices to build a foundation, attending the University of Guelph where his father worked, granting him free tuition. He lived at home for two years before moving in with friends, a decision he saw as a sacrifice. That was one of the first financial sacrifices I think I made, giving up that residence-life experience, he said. He later felt comfortable spending $40,000 on a master's degree and living costs in Toronto, saying he had a handle on his finances by then.
After graduate school, he completed an internship in Ottawa and secured a full-time job. Now, he wrestles with balancing saving for the future with enjoying his youth. I am just fearful that in 10 to 15 years, I will look back on my 20s with regret that I didn't do enough, or the opposite, where I find myself in a difficult financial position when it comes time to think about kids, homeownership and retirement planning, he says. Grant says automatic payroll deductions for savings help him spend on leisure without guilt.
With files from The Globe and Mail