Let’s face it, most of us have been heavily influenced by our parents in multiple areas of our lives. Whether it be our interests in food, clothing, the neighbourhood we live in, or even the car we drive, our decisions relate to our childhood beliefs. Money is no exception. If your parents were spenders, you are more likely to be a spender, if they were mattress stuffers, you more than likely will save, and if they were investors, you guessed it, you’re likely to be an investor.

This begs the question if you want to retire, and I’m assuming you do if you are reading this, which method (spending or saving) will allow you to reach your goal and get there sooner?

Let’s turn to the handy dandy research WEALTHSIMPLE has conducted to answer the question.

If the average Canadian requires $1.7million to retire, let’s take a snapshot of where we stand in our net worth (assets—liabilities). Spring Financial released the median (the mean would skew towards the high net worth individuals) net worth of Canadians earlier this year. It is a sobering series of graphics. Our net worth tends to increase until age 55-64 and then steeply declines. This is likely explained by retirement and continued drawing down of reserves. Usually, this is because typical retirees do not have other revenue streams savings naturally erode. Another feather in the cap of creating multiple revenue streams. The last graphic illustrates the net worth of certain geographies of Canada. The discrepancies can be tied to a variety of factors (cost of living, employment opportunities, population size etc).

Take-home point: Take action, invest early and often, and develop multiple revenue streams. Anything above zero compounds.

If you're interested in learning more about getting your financial house in order and how to set up your financial life, please consider registering for the recorded beginner course.