For the average Canadian, housing is typically the largest line item in their monthly budget. There is a general rule of thumb that you should be spending 30% of your income on housing. Canadians are spending as much as 50%. My advice? Spend 20% or less. I also recommend spending a lot of time shopping around and weighing your options before you move.
The cost of housing in almost every major city in Canada is increasing year over year. Once you find the place for you, buy it or rent it. Yearly increases in rent and interest rates are lower than the increasing costs of the rent and mortgages themselves. The sooner you nail down a place, the better.
Once you have a spot, stay there as long as it fits your lifestyle. Avoiding cashing out only to be greeted with more expensive housing. This also helps eliminate moving costs, give you leverage when you renegotiate services, and more. Every time you move, you risk needing to swap out furniture, buy appliances, and spend money that you wouldn’t need to otherwise.
If you can live far below your means, you’ll have more money to save and more money to spend on things you want. If vault ceilings and stainless steel appliances truly make you happy, that’s okay too. For some, a quiet, comfortable place to lay your head it enough.
Are you overspending on housing? Do you have any housing tips?