Jul 262013
 

Recently read in the news that the average Canadian household now has a net worth of $400,151 CAD, a record high. Yay, time to partay\(~o~)/ This is great news because more money translates into better purchasing power so buying goods and services become more affordable, relatively speaking.

I didn’t know exactly why my net worth has been going up so quickly since the beginning of this year, but it makes more sense now with this new information. I think by being exposed to hot markets my personal finances has somehow benefited 🙂 The study points out that Vancouver still leads the country with the most wealth as the average net worth per household here is a whopping $662,600. Wowzers that’s a lot of money 😀 So far my net worth isn’t even close to that number yet but if I stay in Vancouver and continue to save and invest I’m sure one day I will become average as well haha. money_buy_happiness

At my part time job for example, a lot of students I work with bring capital to the school from foreign countries. The money allows for them to get an education and is a source of income for the local Vancouverites like myself 😀 Win win.

And Saskatchewan is apparently the leader of economic growth. Real estate prices increased 7.7% last year. Good thing I locked in the contract to buy the farm earlier this year for $172,500. I remember blogging about it in the spring and was nervous that I might have overpaid. But now I realize even if I did, the spread is probably gone by now anyway 🙂 I hope my land will continue to grow as other people look for investment opportunities in the prairies. But who will be the greater fool? hehe.

This study is quite telling, but of course average isn’t always a good barometer of relative wealth because the numbers can be heavily skewed by the ultra wealthy. So let’s find out what the median household net worth in Canada is 😀 Last year a study that I blogged about showed the median net worth per adult is $89,014. And from the 2011 Census, we know that there are 13,320,600 private households in Canada. We also know that Canada has approximately 35,000,000 people. This means that there is roughly 2.63 people per household. If the median person is worth $89,014 then the median household would have a net worth of roughly $234,000. Probably not very scientific, but it gives us a ball park figure anyway.
Disclaimer: I’m bad at math 😛

As you might have expected the median household net worth at $234,000 is much lower than the average 🙂 Nevertheless I probably still have a couple years to save before I’m considered median lol. Speaking of wealth, I recently published a new page dedicated to net worth statistics 🙂 

 

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Random Useless Fact: How to propose to someone if you’re on a tight budget 😛

burger_engagement_ring_cheap

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16 Comments on "We’re Becoming Wealthier"

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krantcents
Guest

I tend to ignore averages and statistics because they’re usually used to make the writer’s point . It may be biased or not. The number does not matter if you are deep i debt or have a net worth that is higher. I usually measure myself using my goals and progress.

hungry hungry artist (@blerghhh)
Guest

I’m doing my best to keep those averages down! My NW peaked in February and is now a whopping 12% less. Oh well… Showing the exact same trend as last year.

Financial Underdog
Guest

The science of stats completely boggles my mind sometimes. Everybody keeps talking how average people are in debt to their eyeballs and can’t pay their bills – yet the average wealth is close to a half a million dollars.

Agent Fang
Guest

Ah im not climbing uo on the ladder to wealthy. Lol on the ring in burger! That would have been my dream proposal.

Jon
Guest
Jon

You make a good point, with such wealth disparity in Canada the difference from the median to the average would likely be very large!

Phil
Guest

Nice post. Here’s a thought, but how do these numbers account for those that get future pensions? It is a questions I rarely see brought up or discussed. Many public servants will end up with these types of pensions as will many unionized groups. Their net worth’s would be calculated as low, but future income flow will still be there. Statistics are important to spin the numbers for bias opinion, trust me I worked with them for many years. The key to knowing whether or not you are doing okay or are on track, is that you are living on less than you have coming in. Do this for your entire life and bank any difference for any unforeseen, but statistically present emergencies, and you will live a comfortable life. – Cheers.

Alex Yang (@yyangalex)
Guest

they should publish net worth numbers ex-primary residence. it would 1, remove some regional difference due to real estate pricing variation, and 2. remove a relatively hard to access portion of the net worth. also would be helpful to see how much people would be affected by a real estate down turn.

ie: one Vancouver real estate couple recently in the news not only both worked in RE, but had almost all their net worth tied up in RE, including their primary residence, and 1 or 2 investment properties, that were cash flow negative! even if they were at the national average, thats a very low quality net worth

ps: that picture is so true. my friend and i always say, whoever said “money cant buy happiness” obviously just didnt have enough money! LOL

Financial Samurai
Guest

Good stuff mate! I didn’t see this before I wrote mine. It really is awesome how wealthy everybody is becoming.

Let the good times roll!

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