Montreal financial worker in his 20s makes over $200,000 and is about to buy first home

Name, age: Ralph, in his 20s

Annual income: $214,000

Debt: $0

Savings: $84,500 in savings account, $86,100 in tax-free savings account (TFSA), $107,400 in registered retirement savings plan (RRSP), $16,700 in first home savings account (FHSA)

What he does: Financial research

Where he lives: Montreal

Top financial concern: “We’ve been lucky enough to be living on two salaries. If one of us had to lose their job, that would be my primary concern.”

When Ralph was growing up, money was often a subject of conflict in his home. He says it led him to grow up paying close attention to his income and spending.

“Since I was 15 years old I’ve had a spreadsheet where on a monthly basis I put everything in there to keep track of my finances,” says Ralph, who lives in Montreal and works in the financial sector, making more than $200,000 a year with a raise coming any day now. He has a university degree and a chartered financial analyst designation.

“I was lucky enough to not have to work while I was studying,” says Ralph, whose parents set aside money for his education. “It was a tremendous opportunity for me not to have any student debt.”

He has been with the same firm for his working life, rising through the ranks in jobs that have afforded him a very comfortable lifestyle compared with many people his age. He has a car, enjoys skiing and tennis, and is about to buy his first home, on Montreal’s south shore, with his partner. It will cost about $700,000, he says.

Ralph had been approved by the bank to buy a home as expensive as $1,050,000, but felt a mortgage that high would put a strain on his lifestyle.

“That’s too high for monthly expenses,” he says.

The couple currently lives in a rented condo. The new place will be a step up size-wise, but will require a commute. “It’s in a newly developed neighbourhood and conveniently close to the train station,” he says,

He estimates a monthly mortgage payment of about $2,810 at the new place, which is less than he pays in rent, but knows there will be other new costs to factor in on top of that. The couple is considering having children one day and may move again to a larger home down the road.

Ralph’s income is double what his partner makes, so they split their housing expenses and big-ticket costs proportionally, while they split day-to-day life costs such as utilities and gasoline evenly. It’s worked well that way so far, he says.

“Every year we reassess our financial condition,” he says, while adding that having regular talks about money keeps both partners on the same page. “The most important part is we have open channels of communication.”

His typical monthly expenses:

Investment and savings: $9,583

$7,000 to savings. “Mostly in short-term Government of Canada treasury bills.”

$583 to TFSA. “80 per cent U.S. equities, 15 per cent global equities.”

$1,333 to RRSP

$667 to FHSA

Servicing debt: $0

Household and transportation: $2,313

$1,900 to rent and parking space. “My partner pays $1,000.”

$48 to renters insurance

$30 to utilities

$30 to gas

$28 to car insurance

$167 to car maintenance. “Regular service and tire changes.”

$35 for transportation. “Bike share and transit.”

$10 for Uber

$41 to cellphone

$24 on internet

Food and drink: $860

$400 on groceries. “My monthly portion.”

$340 on eating out. “Including coffee shops.”

$120 on alcohol

Miscellaneous: $3,999

$1,622 to income tax. “Federal $714.08 and Quebec taxes $908.18.”

$80 to entertainment

$33 on Netflix

$15 on subscriptions. “Oura Ring, The Athletic, Apple iCloud, Patreon.”

$224 on clothing

$480 on sports

$10 on haircuts. “Doing it at home, with a professional haircut on a quarterly basis.”

$50 on contact lenses. “Partly covered by insurance.”

$95 on other medical expenses

$1,050 on vacations. “A big trip during the summer and this year we had two big weekend getaways in October.”

$150 on donations

$100 on gifts. “I like to give a lot of gifts to my family.”

$15 on books

$35 on weekend getaways. “Road trips out of the city.”

$40 on toiletries. “Hair gel, soap, etc.”

Some details may be changed to protect the privacy of the person profiled. We want to thank them for sharing their story. Are you a millennial or Gen Z who would like to participate in a Paycheque Project? Send us an e-mail.