Happy Financial Literacy Month November. It is hard to imagine bills that are more than your income but it is real if you do not have any financial literacy. I talk about Ann, a woman who barely was able to keep her head above water as she worked, ended up in bankruptcy protection at 64 years old with debts and losing her home (article).
Unlike Ann, the average Canadian has this much household net worth (wealth after expenses). At 64 they have nearly $1 million (after expenses) and at 40 they have nearly $500,000 (after expenses).
They got there by controlling their expenses as their income remain relatively fixed (article). Ann’s mistake was her variable expenses while her income stayed the same including an unexpected dental fee that set her back. When Ann sold her home in a boom real estate market it was still not enough to cover her bank debts in full.
People who avoided Ann’s mistakes and achieve the average net worth for their age do not live like Ann (article).