There is a spectrum of benefits living in a metropolitan city like Toronto — from the bustling theatre and entertainment district to the serene waterfront. It’s a city that offers several possibilities and unparalleled diversity.
Living in a big city often comes with a higher price tag compared to other towns in Ontario. It’s easier than you might think to spend money on everyday activities or social events. This can negatively impact your budget, especially when you’re likely paying a significant mortgage.
If you’re considering moving to Toronto, these three budget tips can help keep you on your best financial footing.
Prioritize Your Debt
Before you plan nights out with friends, have you taken a look at your current debt situation? If you’re moving to a new city, especially one as cost-heavy as Toronto, it’s essential to know if you’re contributing as much as you possibly can to your outstanding balances.
By simply taking the money you would spend on a dinner at that new restaurant and putting it towards your balance, you’re taking a significant step forward — paying only the minimum balance is the easiest way to prolong your debt. If you have multiple creditors to answer to, you may need to research personal loans in Toronto — in the case of consolidating debt. It can be helpful to receive one swift lump sum to pay off your most pressing balances.
Choose Your Neighbourhood Wisely
While there are sought-after neighbourhoods in the city, those areas will cost significantly more than up-and-coming areas. It’s enticing to live in the middle of the action, but when it comes to your finances, it may be more constructive to live slightly outside of your desired area.
Home prices in Toronto are rising quickly, which means homeowners should consider their second or third neighbourhood preferences. As those areas begin to develop, you have a greater chance of building more equity based on your home’s rising value. Plus, with the money you’re saving on a cheaper mortgage, you have more capital to designate to your savings, investments, or the odd evening out.
Find Freedom in Free
It’s easy to get caught up in the excitement of a big city since there’s never a shortage of activities or events to take part in. Learning how to manage spending in a big city will significantly impact your spending habits as you settle into your new home and lifestyle.
In a dynamic city like Toronto, several cost-friendly activities are available for young professionals and families alike to take advantage of — from the numerous parks across the city to the free festivals that operate in the summertime.
That’s no to say you can’t treat yourself once in a while and enjoy one of the city’s restaurants or attend a live theatre event. You should remember that spending in moderation is key — and that finding the excitement in free activities can be just as fulfilling. Your wallet will thank you in the end.