The story of Kristjan, a 35-year-old digital artist, is a fascinating glimpse into the world of personal finance and the emotional complexities it can entail. But is his financial success a cause for celebration or a source of moral dilemma?
Kristjan, who resides in a prairie city, has quietly amassed over $1 million in savings and investments, a remarkable feat for someone his age. He earns approximately $200,000 annually from his professional corporation, paying himself a salary of around $94,000. His financial journey began right after high school, when he lived with his parents and taught himself 3D animation using online resources, setting the foundation for his thriving career.
And this is where the story takes an intriguing turn: Kristjan and his partner have diligently saved, but he confesses to feeling guilty about their financial success. He says, "The feeling of guilt comes from having quietly saved more than most of my family, friends, and peers, and witnessing the financial struggles my generation faces." But there's more to this guilt than just financial disparity. Kristjan worries about the impact of AI on his career and the middle class in general, a concern that weighs heavily on his mind.
His saving strategy has been aggressive, prioritizing investments over leisure. He confesses, "I focus on compounding gains." This dedication has led him to work tirelessly, even taking on back-to-back eight-hour shifts for different clients in a single day. Such dedication has its consequences; he admits to struggling to take time off, knowing that a week's vacation could cost him $5,000 in potential earnings.
Kristjan's financial prowess is evident in his savings and investment accounts: $50,000 in a corporate checking account, $518,266 in tax-free savings, $303,878 in registered retirement plans, and $182,000 in non-registered and corporate investments. However, his financial journey hasn't been without challenges. He incorporated his business to manage tax obligations, and to access those funds, he executed a surplus strip, a complex tax maneuver. This move was stressful due to impending tax law changes, and he felt moral qualms about it, but the potential financial loss was too significant to ignore.
Kristjan's monthly expenses provide a window into his lifestyle: he allocates $500 to savings and investments, $1,600 to his mortgage, $1,439 to household and transportation costs, and $660 to food and drink. He also spends $2,385 on miscellaneous expenses, including $500 on cycling gear, $100 on donations, and $150 on electronics. But here's where it gets controversial: his spending reveals a lifestyle that some might consider extravagant, with a Corvette, a $6,000 bicycle, and a penchant for DoorDash during stressful periods.
The Paycheque Project aims to shed light on the financial lives of young Canadians, offering a judgment-free space for millennials and Gen Zers to share their stories. Kristjan's narrative is a compelling example of the financial decisions and emotions that shape our lives. It begs the question: How do we balance financial success with our values and the well-being of those around us?
