How much money does it take to feel comfortably rich?
A cool half-million dollars annually would do it for most Canadians, according to an American Express survey. But even without that sum, the majority of respondents making the average household income of $58,000 (85 per cent) feel they are living quite comfortably; 10 per cent consider themselves well off.
As for whether or not Canadians believe money can buy happiness, 72 per cent of all those polled believe that it doesn’t. But when looked at closely, 31 per cent of affluent Canadians agree that money can buy happiness, compared to only 13 per cent of average earners saying the same thing.
More than half of respondents said that they don’t have enough spare cash to do or buy the things they enjoy. A cautious attitude towards money shows through in the study. The vast majority (82 per cent) said if they received an unexpected windfall, they would use it to pay off debts or to invest. Only 15 per cent said they would spend it.
When they do decide to indulge, regardless of income, Canadians say they tend to shop around for the best prices. Home improvements, entertainment, sports and hobbies, and travel are the top items on which people spend their discretionary income.
When asked about their financial priorities, the most frequently mentioned goal across all income groups was to pay off their mortgage or other debts (31 per cent), save for something specific (21 per cent) or save more in general (15 per cent).
While the majority of affluent Canadians earning more than $200,000 don’t think they live lavishly, they are twice as likely as most people to spend $2,000 per person on a vacation (48 per cent), pay $250 on a hotel room (58 per cent), drop upwards of $300 on an evening out to the theatre or a hockey game (32 per cent), and think nothing of regularly doling out $100 for dinner (94 per cent).
By contrast, most average income earners feel this kind of spending is excessive.
The 2003 American Express Survey of Affluence was based on telephone interviews conducted among random samples of 1,000 adult Canadians. Samples of this size produce national results that can be considered accurate within three percentage points, 95 times out of 100.
