How to live a richer life—no matter your age

Elbows up! We Canucks take pride in our country, so it was initially a shock when the latest World Happiness Report (WHR) revealed that Canada’s happiness ranking plummeted from fifth place in 2015 to 25th place in 2026. Economic challenges in the same period have surely played a part. “While financial concerns aren’t new, costs have gone up and disposable income has gone down,” says Lorna Eastman, CFP and president of Lorna Eastman and Associates in Victoria. “Worry erodes happiness.”

Our country’s economic output per person, known as GDP (gross domestic product) per capita, is one of the only economic ranking factors in the WHR, but Canadians are concerned. The most recent Canadian Survey of Consumer Expectations, by the Bank of Canada, for instance, found that consumers are pessimistic about their financial health and more likely to miss a debt payment. Still, Eastman and other experts say there are plenty of proactive things Canadians can do to boost savings and satisfaction and reduce stress at every age and stage. 

How gen Z can be happier and wealthier

Education costs, high housing prices and fewer job opportunities are making it hard for gen Z (born between 1997 and 2012) to replicate their parents’ financial journey. “We are going through a cultural change,” says Anthony McCanny, a PhD student specializing in happiness economics at the University of Toronto, noting a dramatic decline in WHR scores for Canadians under 25. “We need to change our expectations—success may look different than what we expected.” 

Rich life tips for gen Z

• Let’s normalize renting—while home ownership is often synonymous with success, it can wait. (Do open a first-home savings account, aka FHSA, if you intend to buy.)
• Consider moving to a more affordable city, town or province so you have more disposable income.
• Start developing smart financial habits that last a lifetime, such as putting aside money from every paycheque into a tax-free savings account (TFSA) or a registered retirement savings plan (RRSP). This and many tips in this article could apply to any age, really.

“Tracking your money in and out will also give you greater insight into your financial situation and where you have control,” says Eastman. (Banking apps can help.) 

How millennials can be happier and wealthier

While some millennials (1981 to 1996) are quite financially secure, others have had a late start or have bought a high-priced house that’s gone down in value, with a mortgage coming up for renewal. Child care costs can also pack a punch. As Jason Heath, CFP, an advice-only planner with Objective Financial Partners says, “In this cohort, people are struggling with questions like, ‘Do I pay down my debt?’ ’How do I stop working someday?’ and ’How do I become financially independent?’” 

Rich life tips for millennials

• Avoid debt or pay it off when you can, and shop around for credit with low interest rates whenever possible.
• Keep saving money and consider paying for your own pension via an insurance company if you’re self-employed or if your company doesn’t offer a plan.
• Get financial advice sooner rather than later, so you can course correct early.

“Having some clarity on your money situation, no matter what the current financial picture, results in less stress and greater happiness,” says Eastman.

How gen X can be happier and wealthier

For gen X (1965 to 1980), debt and the high cost of living hurt. Parents in this cohort are more likely  than in previous decades to be subsidizing education, rent and even house down-payment costs for young-adult children.

Rich life tips for gen x

• Maximize TFSA and RRSP savings.
• Save or invest more if you’re renting, single or starting to experience health challenges.
• Consider downsizing to a smaller home or a more affordable community, here or even abroad.

Financial happiness doesn’t have to be complicated. “I met with clients last week who live in an expensive Toronto home with a big mortgage,” says Heath. “If they were to downsize, pay off their debt and dedicate that cash flow to retirement savings, it could really make a difference.”

How baby boomers and traditionalists can be happier and wealthier

Cash flow can be challenging when you’re a baby boomer or a traditionalist (1928 to 1965), paying for today’s needs and a retirement nest egg. On the flip side, the financially secure may be reluctant to spend and truly enjoy retirement.

Rich life tips for boomers and traditionalists

• Research future care costs and work with a planner to create a retirement income plan for maximum tax advantage. 
• Think about deferring CPP and OAS benefits until you’re 70 to receive larger monthly payments.
• Help kids and grandkids if you can, but don’t jeopardize your own financial health.
• Use disposable income on experiences that boost your quality of life, or donations that make the world a better place.

Heath finds that the majority of retirees are hesitant to spend and hesitant to gift money or assets to children or charitable organizations “They’re trying to minimize tax and maximize their estate, but lots of people have more money than they need for their own retirement.”

Can money make you happier?

Stabilize your finances but remember that money really can’t buy happiness. Research suggests that once you’re making enough money to meet basic needs, other happiness contributors matter more. As McCanny says, “Social relationships or doing something with your time that you feel has purpose or meaning—those factors become really important.” Heath agrees. Work on smart money goals, but don’t sweat it if you’re not raking in millions. “I’ve worked with thousands of clients, and if people don’t have money, they can be stressed and unhappy, but people with a lot of money can be stressed and anxious for different reasons,” says Heath. “I think a lot of people play the lottery, thinking it’s going to solve all their problems. But there really isn’t a significant increase in happiness.”