Maja karo Aish karo pura time paisa paisa karkey mar jao gey.

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"Ever dance with the devil in the pale moon light?"
"I always ask that of all my prey."
"I just like the sound of it."

Hi
I completely agree with the comments of Mistar India. In the western world, having cash on hand is not viable. Hence, they make smart investments and watch their money grow. If somebody is looking at saving a minimum of $30,000 a year in the bank, they must earn a salary in the range of 90k to 100k(depends on whether you are renting or buying). Buying is always the best option. If possible, always buy a house that can not only house you,but also can generate a rent. Education centers like waterloo,London or Markham are the best bet. The house prices in these areas have gone up by about 35% in the past three years and will continue to grow. Don't buy in a locations,where there are no fundamentals in the community for growth. You will not gain much in the long term in these areas.
Regards,
Jay

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Orginally posted by chandresh

I would say you are wrong on both counts as well a bit confused on what you exactly want to know – I will elaborate on that:

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Orginally posted by nishitno1

Any one who is already saving that amount of $ 30000 a year ; please remember my question is meant that at what earnings and after a decent lifestyle you can save the amount mentioned earlier.

For Chandresh

If you are earning that amount why shouldn't one opt for house as you get appreciation as compensation for the mortgage intrest and other heat ,hydro etc expenses.

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It does not matter whether it is a rented or owned place. With 70k gross you would like to stay in a detached house which for a family of four would need atleast 3 bedrooms. On an average, it will cost you about 300k minimum to buy a decent house. With a down payment of 50 k, your loan will be 250k which at 4% interest will call for a mortgage of about 1,350 and other expenses (hydro, heat, taxes etc.) will be another 450 or so making it a total CASH OUTFLOW OF 1,800. Remember we are presently talking cashflow – and I had taken only 1500!!! This difference of $300 can be treated as your savings in the mortgage payment.

From appreciation point of view, there are two things:

1. It is neither guaranteed nor determined!
2. That is not to be considered as saving out of 70K and it is not reducing your cash flow. Yes it builds up your equity……but by savings did you mean revenue-expenses or did you mean equity growth by investments? So do not confuse the issue and be clear.

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I would also say 2 cars is needed but then i know Chandresh's son is almost my age so he is giving his perspective ; wheras the family in my mind is A couple middle aged with 2 Kids in thier 5-13 range .so That family can also do with just one car as well ;thats probably a small adjustment that we make.

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On the second point, I am old but not that old to have son of your age!!!! He still does not have a driving license, and even if he had one, that is not what I am talking about. If I take my one car to office, and I am making 70 k, do you think it is a pure 9 to 5 job??? No way. So who does your groceries, who takes your children who cannot drive for their project work to friends’ place, who takes them to dance class/basketball game/library. Do you do it all by public transport?? Not if you are earning 70K. You get one more car for your spouse. This is NOT a samll adjustment you have to make in Canada, where public transport is taken only when you cannot afford private, or in circumstances where driving will take you longer than by subway! these do not count when you go for groceries and extra-curricular classes!!

And that is what I said, if you are doing it that way, you are not living the life you could, or perhaps should with that income! Then why did one come to Canada? If the idea was purely to save money and live in difficult conditions, then perhaps you MIGHT be able to save, about 20k or so.

Chandresh

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Hi
I did not read all the replies before posting my earlier reply. I just would like to point out certain things for the first time to outsiders.

I lived a luxurious life in India. I received my first culture shock in Canada, when I bought my first desk. I had to assemble it myself!!! So I said, ok,that's the way it is. Having spent my industrial career in India for some time as a design engineer with lots of enthusiasm and willingness to open machines to understand them, I was not against doing the work myself.I lived with my cousins initially and then moved to a Toronto downtown apartment. I had to wash my dishes, had to stand in the queue(some times) for washing my clothes etc. Hum, I said, what;s wrong. What happened to my Indian life, where in, I had servants doing all these chores. Well,that's ok. I can also follow Mahatma Gandhi doing these chores myself.That wisdom never occured to me when I was in India. Back in Mumbai, when I used to get drunk in one of the discos and used to sleep in the same five star hotel,where the disco was. Here I am, doing all these noble things. Back in India, a middle class family can afford to hire a servant for doing most of those chores. Well, here the labour is expensive. I wish, If people like me had the same wisdom, calculative and saving minded life, India would have been the most prosperous country in the world.

Next, When some of friends and relatives used to come down to India from USA, they used to tell us all the fairy tales (filmy tales) about the luxurious life they live here. I remember clearly that one of my relative told me that he just walked into a car showroom to select a model and just drove back home in the car. Now the reality here is different. Yes, you can do that after taking a loan. My relative, as I know now, could not have possibly paid the cash for the car. It is a country where wealth is made with mutual agreements(debts). I now feel proud of the India that I knew, which was a poor country in these western guys mind,but a cash rich country. Untill the so called globalization has started, people used to buy what they can afford and need. The summary of life style here for most of the people(including goras) can be seen around xmas season. Lending companies advertise to borrow from them for buying gifts and vacations and after the season is over, they would advertise to borrow again to pay those earlier credit card bills off. There are creamy layers here as well. The people who are not part of the so called creamy layer(earnings in six, seven figures) and who are not stingy do live from pay check to paycheck. I have seen people marking their calendars with the pay days.

Anyways, I am not explaining my life here. (Somebody just said thanks)
One can never compare India with Canada. The best thing this country has to offer is the uniform(mostly) and no hassle public services, such as health care,which would prove to be a boon the middle class people who immigrated from India. I remember having paid Rs2500 for a CT scan in a corporate hospital in India back in 1990. Here the waiting list is long, but everyone gets it.

In order to satisfy my ego of living the same luxurious life in Canada as I lived back in India, I save little(not really),even after earning a gross salary of >>120K. I have spent almost five years now in Canada and have no regrets. As the quote goes,When you have a will, you have a way.

Regards,
Jay