Living in a big, metropolitan city like Toronto comes with many exciting benefits and opportunities, but it’s also grounds for significant overspending. It’s hard to say no to outings at downtown restaurants or to shows in the theatre district, but when it starts impacting your monthly budget, it’s time to reevaluate.
Managing your spending is crucial in cities where there is a lot to do and various amenities at your disposal. When you have the tools and resources to manage your money effectively, you learn to enjoy your home and everything it has to offer without worrying about debt or needing to find convenient loan services in Canada to get you out of tricky financial situations.
Whether you’re a single working professional in the city, a family of four, or anything in between, these tips can help you learn how to manage your spending when living in a big city like Toronto.
Build a Structured Budget
If you’ve never had a structured budget before, you’re not alone. Many working professionals struggle to outline their expenses every month, especially when the temptation to pay for convenience is always available in major metropolitan cities.
There are various budget tools you can utilize, from simple spreadsheets to a convenient budget app, which can help you track your spending, savings, and investments on the go. When you’re honest about your income and spending habits, it can give you the encouragement you need to hold yourself accountable and prioritize your financial health. Start small — maybe you cut back on one luxury per month — and you’ll start to see results sooner than you think. You can then make the best decisions for your situation moving forward.
Make Monthly Budget Appointments
Accountability can make or break your finances, so it’s important to make regular appointments with yourself, or your partner or family to go over your finances and ensure you’re always making the smartest spending decisions.
These appointments also give you the opportunity to identify where you can continue to cut back, whether or not you can invest more, or even if you can afford to treat yourselves and enjoy more nights out without the rest of your budgeting being negatively impacted.
Take Advantage of Public Transit
Owning a car certainly has its advantages, but you’ll likely spend hundreds of dollars per month on gas, insurance, and repairs or general maintenance. Instead, take advantage of the public transit opportunities in Toronto or your city in Canada. Every major city offers monthly passes which allow you to incorporate that cost into your budget with ease. To save even more money, consider walking or biking in the warmer months and you’ll save even more.
Embrace Free Activities
One of the biggest advantages of moving to a metropolitan city is the variety of free activities and amenities at your disposal. If you love being outdoors, spend more time at local parks with friends or go on weekend hikes. If you’re into arts and culture, many museums will offer free weeknights or discounted deals throughout the week. It’s likely the majority of your expenses are coming from social activities, why not encourage our friends to embrace the free options your city has to offer, and watch how much you save every month.
