This includes monthly bills for mortgage or rent, property taxes, insurance, etc.ĭepending on the city you live in, it could be very difficult (or impossible) to stay within this budget, so you can consider things like getting a roommate to lower your monthly house expenses (by splitting the cost of housing), supplementing your income by renting a room or floor in your home (if you own it), or AirBnB-ing your place. HousingĪt 35%, housing accounts for the bulk of your average monthly expenses, sitting at a median of about $1,378 per month. So, how much should you spend a month on each type of monthly expense? Using the average percentages most experts agree on, here’s how your money should be spent each month. This, of course, varies from province to province due to different provincial tax rates. So instead of having close to $5k to work with on a month-to-month basis, we actually only have about $3,937 for all of our monthly expenses. But we need to pay taxes, so we need to base our monthly budget on our net income, also known as take-home pay. Now, if we're working with the average Canadian salary, which is $1,209 per week, that works out to about $4,836 per month. In our free Budget Planner + Expense Tracker, we break your spending down into four main monthly expense categories: Housing, Living, Work, and Personal expenses, and each of these categories can have various subcategories. For example, the median after-tax income for non-senior families was $93,800 while the median after-tax income of female lone-parent families was roughly $52,500. Again, this is just an average across all provinces and age groups. If you need more specialized help on setting your monthly budget percentages or determining your average household expenses, you may want to seek out a financial advisor or a debt relief service provider.įirst things first: We're going to be working with the average Canadian salary, which is about $62,900 a year (or about $1,209 per week). So, we recommend that you use the following information as a basic guideline. How much you should spend on different monthly expenses will change dramatically depending on your income, family situation, and even where you live. It should be noted that the answer to the question “how much should I be spending a month” can vary. Get a Head Start on Budgeting Your Household Expenses: Try out our free Budget Planner + Expense Tracker! In this blog, we’ll provide the 411 on how much you should be spending in each category, tips to help you budget monthly expenses, and explanations of common living expenses. “How much should my monthly expenses be? What are the average monthly living expenses in Canada? What are some tips I should follow on how to budget monthly expenses?” These are all common questions that people might have about monthly bills and living expenses. While having a budget helps you easily see how much money you have coming in and how much you've got going out, many people wonder how much they should be spending on various monthly expenses, such as home, transportation, groceries, and more. We’ve been talking a lot about the importance of creating a personal monthly budget lately.
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