Why Being Thirtysomething is So Financially Stressful

The thirtysomething years are supposed to be some of the best times of your life, right? You’ve probably already gotten your career off to a flying start (or at least now know what you want that career to be;) you might be married, maybe you even have a child, or several. And you may even own your own home; maybe even with your own car sitting in the driveway. So what’s to be stressed about? Easily summed up, all of the above.
Recent reports have shown that it’s when you’re in your 30s that you’ll be the most financially stressed than in any other time of your life. While having a job, a home, a car, and maybe even a family all looks good on paper, and are all great goals to achieve in life, they all have a downside – they all cost money. And it’s that money that has people in their 30s so stressed out.
Canadian couples, on average, are usually in their late 20s or early 30s when they get married. There is some good news there (other than the fact that you’re now with the one you love) – reports have also proven lately that married couples generally fare better financially than people who are single. However, getting married and being married still costs money. Once those married couples then start having children in their early or mid-30s, that’s when things become really tricky on the family’s balance sheet.
Even with a nice cushy salary that comes with that career, in Canada it costs over $60,000 to raise a child to the age of 5. Add in even one more child and you’re already over $100,000 in child expenses alone, before you start getting to all those other payments such as on your home and car.
But there’s some good news on that front, too. Canadians generally don’t find their monthly mortgage payments to be that stressful. Because most have paid rent before paying their mortgage, they find the amount to be the equivalent or at least very similar to what they’re used to paying for their housing. But, there is still a big difference with being a homeowner – aside from the perks of having an actual investment now. The downside however, is that many people aren’t prepared for the maintenance costs of their home. A leaky roof can set you back $5,000. If your furnace goes, it could cost as much as $10,000. These costs add up – quickly – and these are the costs that so many people in their 30s find so unexpected and have such a hard time dealing with.
Many of these thirtysomething Canadians then turn to other “good” forms of debt in order to pay for these home-maintenace costs (which The Globe and Mail reports to eat up a whopping 48% of a couple’s annual household income.) Many savvy homeowners know that while credit cards and personal loans aren’t the best way to borrow, they turn to home equity loans such as HELOCs. While these are good forms of debt, and using equity that’s already been put into the home, they’re still forms of debt that young homeowners weren’t prepared for – and that adds to their stress.
One of the biggest reasons why Canadian thirtysomethings are so financially stressed during those years is simply because there’s a lot of pressure during that time in their lives. Not only do they need to raise their children (and pay to raise them,) they also need to make mortgage payments, do odd repairs on their home (and pay for those repairs,) put money away for their children’s education, put money away for retirement and of course, always pay themselves first with every paycheque. And if they happen to be working towards a promotion in their career at the same time, even better!
Being a Canadian thirtysomething can be tough, yes. And financially stressful, no doubt. But one of the ways young Canadians can help themselves most is by taking a deep breath and relaxing. Not everything has to be done at once, and if you’re already accomplishing your own goals at this point in life, there’s really nothing to do but congratulate yourself. When it comes to the costs of life, yes there can be many. But these too, don’t need to be tackled all at once. Remember that it doesn’t really make a lot of sense to sock money away in your RRSPs if it means you’re going to miss one of your mortgage payments.
Do what needs to be done today to keep yourself in the good financial standing that has gotten you this far. Then map out a plan of where you want to be and what you want to do in your 40s and 50s, financially-speaking. Then relax, the rest will come. And you can get back to enjoying your thirtysomethings – years that really should be some of the best in your life!