Good salary, but I still can't make ends meet. Is that normal?

You’ve had difficulty making ends meet for some time. However, you have a good job and a steady income and you don’t overspend. You’re not alone. Many people in Quebec are in the same boat and it’s not necessarily the result of poor money management or unnecessary expenses. Unfortunately, it’s today’s reality.

Everything costs more

In Quebec, like elsewhere in the world, the cost of living has soared. Rent, groceries, insurance, gas, and mortgages all cost more. Therefore, even though you earn a good salary, you may feel financially overwhelmed. This isn’t due to poor money management on your part. It’s because the basics cost much more now.

The more you earn, the more you spend

As we all know, when your salary increases, you treat yourself to a more comfortable life with a larger home, more reliable car, family outings and short trips every now and then. This isn’t extravagance. You’re simply leading the normal life you believe you deserve.However, when prices are constantly increasing, you can end up struggling financially even if, on paper, your salary appears to be sufficient.

We want to keep up with others

Due to social media and societal standards, we often compare ourselves to others without even realizing it. We see other people buying a home, going on vacation or upgrading their car and we’d like to do the same. However, don’t forget that what you see on social media is not necessarily the reality. It doesn’t mean that everyone is doing better than you.

What can you do to improve your financial situation?

Here are a few simple ideas.

1. Pinpoint where your money is going

   We often fail to realize how quickly small purchases can add up. Making a budget can help you get a clearer picture. When you list and compare your income and expenses, you can see exactly how much you’re spending.

2. Reduce your spending where possible

   This doesn’t involve depriving yourself, but reviewing certain habits. For example:

   • Consider whether you really need all your movie, TV and music streaming subscriptions;
   • Renegotiate your Internet, cellphone and cable TV contracts and compare insurance quotes, for example;
   • Where possible, turn your lights off at home, turn down the heating and choose a cold wash on laundry day;
   • Take public transit or cycle instead of using your car;
   • Vacation in Quebec this year or opt for a staycation and rediscover your city.

3. Reduce your grocery bill

   By checking flyers, preparing meals to take on outings, cooking at home more often and bulk buying, etc.

4. Avoid piling up credit

   Monitor your credit card use to make ends meet. Pay in cash and avoid impulse buys.

In the current context, many people who have a good salary are also struggling to make ends meet. If, after trying to reduce your expenses, your debts are still weighing you down, consult a Licensed Insolvency Trustee who can help you find concrete solutions. Don’t wait until you’re on the brink to seek help. Contact our team of experts! We can help you regain financial peace of mind.