Living in Toronto On a Budget

Toronto is one of the biggest and most famous cities in Canada, which makes it an attractive destination for many people. Although many people might want to live in Toronto, it may be hard to afford one of the homes for sale in Toronto if you’re dealing with a strict financial budget. Thankfully, there are several things you can do to make it in just about any city, but especially in a city like Toronto. So how can you cut back and secure your finances enough to afford a Toronto residence? Here’s how to live in Toronto on a budget. 

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Rent

One of the biggest areas you’ll have to budget when living in Toronto is your rent or mortgage payments. The most common recommendation is to spend about 30% of your take-home pay on living expenses, leaving plenty of room for other financial commitments. Unfortunately, this isn’t always feasible, so you may have to spend a higher percentage to secure a place to live. Just be sure that you aren’t overspending on your living situation, and you definitely shouldn’t be spending over half your paycheck paying rent and utilities. 

Groceries

Another area you should be able to shave money off of is food and groceries. If you want to spend less money on food, then you’re going to have to start eating out less and cooking more. Although it may take extra time and effort, cooking your own food is much cheaper than ordering food from restaurants. This is especially true when you factor in delivery fees and tips from new delivery apps such as DoorDash and UberEats. To save even more money, buy food items on sale and try collecting and using coupons when buying groceries. Budgeting your food will take a lot of work and may even require you to learn how to cook, but it will be well worth it once you see your savings. 

Transportation

Transportation is another big area of life that people waste money on. First, you’ll want to avoid splurging on a fancy new vehicle. While a nice car may sound nice now, it’s much smarter to have a cheaper option when on a budget and save up for nicer items for when you can really afford them. Gas prices are also really high, so you’ll want to avoid overusing your car. Try taking alternative methods of getting to locations such as walking, biking, or utilizing free public transportation. You may even want to start carpooling with friends or coworkers to different locations, just so you can reduce and share transportation costs. 

Entertainment/Social Life

Entertainment and social life is something many people struggle to budget for, especially younger generations. There are plenty of common entertainment traps people fall into, including going out for drinks, watching movies at the theater, visiting coffee shops, and buying video games and consoles. While you don’t have to completely cut entertainment out of your budget, it should only be a small part of your expenses. It’s easier to budget when you treat yourself once in a while, but just make sure only a small percentage of your money is going to wants rather than needs or savings.