Cost Of Living – Tips to Help You Manage
Estimated reading time: 5 minutes
Living in Canada is expensive. The cost of living in Canada is among the highest in the world, even compared with other equally prosperous nations.
Housing costs, energy bills and food prices are the main driving force behind this recent surge. But, of course, there are other factors to consider as well.
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Throughout the last thirty years, there has been a rise in living standards across Western economies.
Many have enjoyed the positives of their country steadily climbing.
As a result, disposable income has increased, leading Canadians to take up other hobbies, such as gambling.
Online roulette on Bodog is an example of a digital casino where you can unwind and play your chosen casino game.
However, it would be best if you always gambled responsibly.
If you see gambling as a source of entertainment, not a way to earn money, you will be okay.
Yet, if you start to chase losses or spend too much time gambling, stop immediately and speak to somebody.
With that said, the definition of the cost-of-living crisis is relatively broad when we discuss a rise in living standards.
It includes various economic measuring tools, such as life expectancy, health care, crime rate and currency value.
Canada is one of the countries, alongside many in the G8, that benefitted during this period.
What Is Driving The Cost Of Living Crisis In Canada?
This may not be a consolation to many Canadians, but many countries are experiencing a similar issue.
Across the globe, many of the world’s biggest economies are experiencing cost of living issues, such as Australia, the United Kingdom, and Argentina.
The latter is currently experiencing inflation of around 98% and is at risk of hyperinflation.
Like Sarah Coles, senior financial analyst at Hargreaves Lansdown, mentions, supply problems have surged energy prices, which have led to energy prices increasing tremendously since April 2022.
The conflict in Ukraine has affected this, deteriorating the state of fuel and energy prices, leading to inflation.
The main issue in Canada is that supply chain issues and global inflationary pressures drive inflation.
As the essentials along the supply chain increase in cost, the impact reverberates around the economy.
A key example is the cost of oil. Once oil prices increase, it impacts food production and transport, and the overall price of both commodities goes up.
Times are hard. But, hopefully, today, we will be able to give you some tips on how to stretch the budget and make the most of your Canadian Dollars.
Shop At Discount Retailers & Make Your Own Meals
With many major supermarkets having to increase prices due to these supply chain costs, many Canadians have opted for discount stores to obtain food products.
It is nice to enjoy a meal at a restaurant or a takeout from time to time.
When times are hard and the cost of living starts to hit, cutting down on these luxuries is one of the most common ways to save.
Making meals yourself with cheaper ingredients is a surefire way to keep more of your money.
One of the best features of the internet is the ability to find budget-friendly recipes.
Examples include Jalapeno Poppers, Crispy Sweet Potato Fries, and Cauliflower Pizza, which are inexpensive meals that could incorporate leftovers.
With that said, take advantage of the food you buy throughout the week while minimizing waste. This will save you large amounts of money in the long run.
So, before going grocery shopping, check your pantry, freezer, fridge, and cupboard – is there anything that could go bad that you could still incorporate in various recipes?
Could you possibly freeze some leftovers to reduce your spending?
Note that you can find hundreds of budget recipes online, and it is one of the most effective tips to save money.
Watch The Energy Bills
Sometimes lowering the heating and putting on a few extra layers is a good way to save energy bills.
It depends on where in Canada you are, of course. However, if the weather drops below -20, try to keep the heat on!
Your apartment or house should provide some insulation by default, so make sure to retain heat in the house as much as possible by covering up gaps in doors and windows.
However, if it is something you can cut down on, this could save you a serious amount of Dollars over a few months.
Water bills could be another area where you can try to trim costs.
- Take shorter showers
- Run a bath instead of a shower
- Turn the tap off when brushing your teeth.
Related: How to sign up for the Ontario Electricity Support Program
Public Transport & Vocation Costs
Again, depending on the area you’re in, this could be problematic.
However, if you live in one of the big cities in Canada, using public transport instead of a car will save you money.
If you’re travelling to work, try carpooling with a colleague and split fuel costs.
Currently, fuel prices are through the roof, which is a direct consequence of rising political tensions with Russia.
If you prepare your meals at home for work, you will save money on other overheads, such as spending money in a local cafe or restaurant.
Implementing these tips will help you stretch your budget further if you can.
Hopefully, if the economy begins to pick up, the cost of living crisis will become a secondary issue. But unfortunately, many economists predict these financial strains will persist throughout 2023.
However, hopefully, toward the end of the year, we can see a turnaround in some of these costs and a brighter economic outlook lies ahead.
Canada will likely follow suit if other world economies see inflation slow down and their economic outlook improves.
These tips always come in handy even when the economy is in a better position, especially in times of crisis.
Learning to be frugal prepares you financially for a better future, regardless of the economic sentiment, and there’s no time like the present.
Thanks for stopping by,