How to Successfully Manage Your Personal Finances
Know this: after your studies, you could very well choose to stay in Greater Montréal for monetary reasons. Living in this metropolitan area is financially advantageous.
Overall, compared to most similar-sized cities, life in Greater Montréal is cheaper. The Economist Intelligence Unit’s studies show that the cost of living in Montréal is lower than in Toronto, Vancouver, Boston, New York, Chicago and San Francisco.
This reality can be explained by several factors including:
- Housing costs – Especially advantageous compared to those in many other big Canadian and American metropolitan areas.
- Healthcare costs – Clearly lower in Canada than in the United States.
- Childcare costs – The affordable universal daycare system means childcare costs are lower in Québec than elsewhere.
Photo credit : Sébastien Roy
That said, to reach your desired standard of living more quickly, you'll need to plan accordingly.
Here are three building blocks to healthy personal finances:
Make a Budget
Excluding debt payments, a sum between $20,000 to $25,000 has been evaluated as the annual average budget needed for a single person to live comfortably in Greater Montréal (after tax, a net income of about $20,000 represents a salary of about $25,000). Teaching institutions such as the Université de Montréal or UQAM, offer information (in French only) on typical budgets and cost of living for students.
But to know how much money you'll really need, it's best to plan your budget.
Monitor Your Credit Rating
Making sure you pay your bills and pay off your debts in a timely and consistent manner will help you build a good credit rating, enabling you easier access to loans afterwards.
Think Long Term
In the area of personal finances, it's always wise to look into the medium- and long-term future. If you are starting your career in Greater Montréal, you'll certainly find investment opportunties to ensure your future.
Did you know?
As a foreign student you can file a tax return to claim a tax credit for your tuition fees. However, to be entitled to this credit, you need to be able to declare a certain income. If your income is insufficient, you can also carry forward these credits for future years, when you will start working for example. Inquire about this when you file your Québec and Canada income tax reports.
As a foreign student you can file a tax return to claim a tax credit for your tuition fees.