Monthly Expenses in Canada

Monthly expenses in Canada are a well-planned endeavor. Either you ensure that you have your finances in order or you will be asking yourself where all your money went. Immigration is a choice that you make when you plan on moving to a different country. But the choice is always yours. And this choice needs to be a calculated one, you shouldn’t be going: Where did all my money go?

There isn’t much information online as to how much you will be spending in a month. The general idea that Canada Immigration has provided on this is the Proof of Funds that they request you to submit whilst applying to become a Permanent Resident of Canada. This allows the immigration officers to ascertain that an individual can survive 6 months in Canada without a steady stream of income. These limits are updated on a yearly basis considering the inflation in the economy here.

How much is enough?

Well, this question remains for until the end. It is never enough for a human being. But still there is a limit to how much you need to survive. Economics divided a human beings’ requirements in to two categories, Needs and Wants! It is for the people to understand what they want to categorize and where.

“Needs are limited but Wants are ample and they don’t die down easy.”

Needs are a necessity for an individuals’ survival like air, water, food and shelter etc. These can be anything that a person would require to live a healthy life. As it is mentioned, they are backed by the individual’s purchasing power.

Depending on your purchasing power, wants are generated. These are your wishes, desires and aspiration. Things you can live without, but you choose not to live without them.

Life in Canada:

Your life in Canada as an immigrant and the expenses that entail is dependent on your choice of life. These are things that you decide, and you choose. There are people who tend to keep their life simple and choose to live off on less. And then there are those who decide to go all-in and are left with the same question: Where did all my money go? MAYBE!

Choosing to live an exclusive life is again a choice, but you must work for it. Expenses creep on you if you don’t keep a check and balance between your income and your expenditure.

Monthly Expenses in Canada:

There are different types of expenses when you move away from needs and wants. Your choice your decisions drive where your money goes at the end of the day. We classify monthly expenses in Canada in to two different types: Fixed and Variable. Both these expenses total your monthly expenditure and getting to know them keeps you financially strong and stable.

Depending on your choices, fixed expenses are those that you pay on a monthly basis without fail. Variable expenses are those that differ from month to month. You can save on our variable monthly costs but cannot save on the fixed ones.

An Insight on Monthly Expenses:

When coming to Canada, you need an idea as to what monthly expenses in Canada you will be looking at. There are expenses that you may not want to take on but there are some that you cannot avoid. The decision is yours and you need to decide on how you would like to live. Following is an overview of fixed expenses for a month considering a family of 4:

1. House Rent/Lease – CAD 1,200
2. Renter’s Home Insurance – CAD 40
3. Hydro and Gas Bills – CAD 200 to 250 Average
4. Internet and/or Phone Bill – CAD 50 to 100
5. Cellphone Bills – CAD 150 (2 Phones)                              
6. Car Loan/Lease – CAD 350 to 500
7. Car Insurance – CAD 250 to CAD 350
8. Groceries – CAD 400 to 600

These expenses are dependent on your own choices, having and keeping a car as I mentioned in my earlier blog is a luxury. You don’t need to have one unless you want to keep one. Other than that, expenses are similar in all provinces. You need to find the right amount that you are willing to pay before you convert that into an expense for yourself.

Now keep in mind, these don’t include your shopping mall trips, buying of winter clothes and boots and the coffee breaks here and there. And don’t forget those dine-ins that you would love to do, restaurants in Canada have their own charm. Everything else is just extra. You need to be mindful and plan your finances properly so that you don’t end up like this:

Suggestions:

Keeping it cheap in the first few months is the key to a successful settlement. You don’t want to end up using all your savings settling in, and then you don’t have leftovers for lunch. Use your resources scarcely and try to find yourself a job or an income source as early as possible after landing in Canada. You would need those savings for that gift that you wanted to give yourself on achieving this milestone.

Finding your calling and your dream job may not come as easy. It might take a while, therefore never give up. We will talk about finding your first job in Canada next. Don’t forget to keep it simple until then. Stay Strong and Stay Safe.

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