Mar 27, 2026
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If you think struggling to make ends meet is a problem only for low-income earners, think again.
Even among Canadians earning $100,000 or more a year, nearly 30% say they are living paycheque to paycheque, according to a 2024 report by the National Payroll Institute.
For those caught in this cycle, each month can feel like a race to the next payday, leaving little room for emergencies, unexpected expenses or even the simple joys of life.
But personal finance expert Suze Orman says there's a way out.
“The most important thing, really, for everybody to understand about their money ... is that you have got to live a life below your means, but within your needs,” Orman said in a 2023 interview on CNBC.
Here are six practical steps she recommends to help you break free from living paycheque to paycheque.
Tip 1: Tackle high-interest debt fast
“Debt is bondage. You will never, ever, ever have financial freedom if you have debt,” warns Suze Orman.
The average Canadian now carries $21,427 in non-mortgage debt, while total consumer debt in Canada has climbed to a massive $2.53 trillion, according to the latest data from Equifax Canada.
High-interest balances are dangerous to your financial health. Credit cards and payday loans are especially damaging, silently draining your income and trapping you in a vicious cycle.
Orman’s advice is simple but powerful: focus on the balance with the highest interest rate first, attack it aggressively, and make minimum payments on the rest.
Even small extra payments can build momentum quickly, reduce stress, and free up cash so you can finally move beyond living paycheque to paycheque.
If you have multiple high-interest balances, consider consolidating your debt into a single loan at a lower rate through Loans Canada. Instead of juggling multiple monthly payments, you'll have one predictable payment to manage each month.
This can both ease your interest costs and improve your credit score. You can shop for the most competitive interest rates on personal and debt consolidation loans, since Loans Canada specializes in comparing rates offered by different lenders.
You don’t need a minimum credit score or annual income to receive personalized loan offers.
If you owe a substantial amount, you may also want to see if you qualify for a debt relief program to clear a significant portion of your debt.
You can get a free consultation with a debt relief expert who can work with you to help clear your debts and rehabilitate your credit with a plan tailored to your needs.
If you owe a substantial amount, you may also want to see if you qualify for a debt relief program to clear a significant portion of your debt.
You can get a free consultation with a debt relief expert who can work with you to help clear your debts and rehabilitate your credit with a plan tailored to your needs.
Tip 2: Build a realistic emergency fund
Statistics Canada reports that 25% of Canadians cannot cover an unexpected $500 expense.
This suggests on unexpected expense — such as a major car repair or a job loss — can push many households into debt.
"You need as much money in the bank that makes you feel secure," Suze Orman said in an interview on CNBC.
She advises that anyone serious about getting rid of debt should find ways to scale back spending. Instead of looking for one big-ticket expense you can drastically cut or eliminate, look for at least a dozen monthly expenses that you can cut by at least 10%.
That extra money can be redirected toward building an emergency fund, which will help reduce financial stress and protect you from accumulating new debt.
One practical place to store those savings is a high-interest savings or chequing account, so your funds remain easily accessible while earning more interest than a traditional savings account.
For example, accounts like the EQ Bank Personal Account combine the everyday convenience of a chequing account with the benefits of a high-interest savings account.
When you fund the account and set up direct deposit, you can earn 2.75% interest on every dollar, while still keeping your money accessible if you need it.
The account also comes with $0 monthly fees, no minimum balance requirements, and even free ATM withdrawals anywhere in Canada.
In other words, your emergency fund stays liquid and flexible, but it’s still quietly working for you in the background.
Tip 3: Automate savings, even small amounts
For those living paycheque to paycheque, especially older adults trying to catch up on retirement, every small contribution matters.
“A portion of every paycheque should go directly into savings — automatically,” says Suze Orman.
The key is consistency, not the size of the deposit. Even $25 to $50 from each paycheque can grow significantly over time when set up to transfer automatically.
One easy way to invest on autopilot is through platforms like Wealthsimple Portfolios.
Their pre-built portfolios are tailored to your retirement goals, risk tolerance and investment horizon, so whether you’re saving for retirement, a home or building long-term wealth, there’s a portfolio that’s right for every investor.
Expert-managed and designed to weather market ups and downs, Wealthsimple takes care of the heavy lifting: automatic contributions, dividend reinvesting and smart rebalancing keep your investments on track.
You can invest through RRSPs, TFSAs or non-registered accounts, all from an intuitive online dashboard or their easy-to-use mobile app.
Trusted by more than three million Canadians, Wealthsimple manages over $100 billion in assets and provides $1 million in eligible coverage through the CDIC for chequing accounts and CIPF for investments. Plus, as licensed fiduciaries, Wealthsimple's advisors must put your financial interests first.
As a Money.ca reader, get a $25 bonus when you open your first account and fund at least $1 within 30 days.
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Visit Wealthsimple for up-to-date terms and conditions.
Tip 4: Know your starting point
Before you can make meaningful progress with your finances, it’s essential to understand exactly where you stand. Track your income, monthly expenses, debts, and credit score — writing it down or using a budgeting app can make this process much easier.
This is especially important for older adults with less time to save. Knowing your starting point helps you focus on high-impact actions, like paying down debt or boosting savings, and plan for long-term security.
As Suze Orman reminds us, “It’s impossible to map out a route to your destination if you don’t know where you’re starting from.”
A quick daily check-in of your accounts can show you exactly where your money is going.
An app like YNAB makes it easy to get a clear, big-picture view of your spending and net worth growth.
Its goal tracking feature helps you prioritize both short- and long-term objectives — from saving for a dream vacation to funding a down payment on a home.
Plus, detailed reports on your spending and net worth give you actionable insights, so you always know where your money is going and how close you are to hitting your financial milestones.
The easy-to-use platform allows you to simplify spending decisions and clarify your financial priorities. Plus, you don’t need to add your credit card information to start your free trial today.
Tip 5: Make spending intentional
“Stop leasing cars, stop eating out, stop doing the things that make your life easier … because in the long run it’s going to make it harder,” warns Suze Orman.
You can start by tracking your spending for a month. This simple step reveals patterns and highlights areas where you may be overspending.
One area where many people can save significantly is home and car insurance. Regularly shopping around and comparing rates between insurance providers can make a big difference in your budget.
Auto insurance premiums have climbed 18.9% since October 2020, according to Statistics Canada.
This jump suggests you might be overpaying every month if you’ve simply just auto-renewed your policy.
While average annual premiums in Ontario hover around $1,927, for instance, many experienced drivers with good credit and a clean record can find rates closer to the $1,500 mark by shopping around.
By using a comparison platform like Rates.ca, you could potentially save $500+ by comparing 20+ quotes from top-rated auto insurance providers to ensure you aren't paying a hidden ‘loyalty tax’ to your current insurer.
Just answer a few basic questions, and Rates.ca will show you the most affordable deals in your area in as little as 3 minutes.
Not only is the process 100% free, but you could also potentially save 20% by bundling your auto and home insurance together.
Tip 6: Protect yourself and your loved ones
Suze Orman emphasizes that true financial stability isn’t just about budgeting and saving — it’s also about protecting what you’ve already built. That’s why life and disability insurance are part of her “Financial Strength Test.”
A term life policy can help replace income, cover major debts, and provide stability for your family if the unexpected happens. Term life insurance is usually less expensive and more flexible than whole life insurance — and the payout is tax-free.
Disability insurance is just as critical, especially since your ability to earn an income is often your biggest financial asset.
With PolicyMe, you can get an instant life insurance quote after you fill out a form with your age, income and smoking status. You’ll get quotes based on the coverage amount and term length you select.
Phil is a writer at Moneywise with a background in public relations, financial communications, and copywriting. Educated in Cambridge, UK, he has vast experience creating content for several blue-chip corporations. He enjoys research, and his favorite quote is, "When prosperity comes, do not waste it.
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