The cost of living in Canada: Introduction
If you’re a Toronto resident then you’ve seen the cost of living in Canada continuously rise. However, the cost of living in Toronto has risen over 20% faster than in the rest of Canada. And, the cost of living is now 36% higher than it was in 2002.
The cost of living in Canada: What StatsCan says
According to Statistics Canada, a few categories were responsible for most of the gains – gasoline, food from restaurants, passenger vehicles, homeowner replacement costs and mortgage interest costs.
The cost of living in Canada: 6 Reasons The Cost Of Living In Toronto Causes Many To Downsize Their Life
In the last 10 years, the cost of living has skyrocketed. In 2008, Toronto’s living wage – the minimum amount necessary for an individual to meet their basic needs – was $16.60 per hour or an annual income of $34,000.
Since then:
- The cost of childcare in Toronto has risen by roughly 30%
- Rent has gone up an average of 13%
- Public transit cost has increased by 36%
- The average price for a 1 bedroom condominium downtown is about $400,000
- An average price for a single detached home $1.2 million
- The average price for a litre of gasoline is $1.37/litre (with predictions that it could soon reach $1.50/litre)
The cost of living in Canada: How much do you need to live comfortably in Toronto?
According to a report by the Toronto based think-tank, the Wellesley Institute, a single person between the ages of 25-40 would need to make between $46,186 and $55,432 – after tax – to live the good life in the Greater Toronto Area.
They arrived at that figure by first accounting for the basic costs of survival, like food and shelter, and then considering the costs associated with quality of life categories like social participation, which includes things like hobbies, travel and socializing.
“This figure indicates the total cost of supporting an individual’s ability to thrive, which is defined as meeting their basic material needs, enabling connections to community and family, supporting educational and professional advancement, and ensuring long-term financial security,” the report states.
The cost of living in Canada: Is the cost of living forcing you to change your lifestyle?
For many, the answer is yes. You can’t cut down or out on necessities like housing, food, transit, and daycare. But, you can:
- downsize into a smaller place
- eat in instead of going out
- bring lunch to work
- cut designer coffees
- be very selective about entertainment
- rethink having a car
- take a stay-cation instead of a vacation
- use coupons
- stop impulse purchases
- leave your plastic at home…
The cost of living in Canada: Change your lifestyle before too much debt ruins your life
Changing your lifestyle to live within your means is the smart thing to do, or you could end in a debt spiral. If you’re already there, the Ira Smith Team can help.
We can’t lower the cost of living or find you a fantastic, cheap place to live, but we can help you solve your financial problems. Give us a call today because with immediate action and the right plan you can be back on your feet financially Starting Over, Starting Now.