Every Cent You Spend
If you’re a newcomer to Canada, I want you to take a minute and give yourself a pat on the back. Not because you aced that test, and not because you got that job (although if you did, please pat yourself on the back…twice). Congratulate yourself on having the courage to start again. You left everything behind and moved to a new country in two suitcases (that’s too little a space to fit your whole life into). But you’re here! You did it! And if you’re anything like I was (I first came here in 2023 as a student), you’re probably hyper-aware of your finances, ruminating over finding a source of income. Any source of income. I’ve been there and it’s stressful. But, it doesn’t have to be. Yes, you’re on your own, but trust me, you’re not alone. Here are my top 5 recommendations on saving money as a newcomer to Canada before you find your first part-time job:
1. Account for every cent you spend
It might seem excessive at first, but putting all my expenses into perspective showed me where my money was going, and that made all the difference. When I was able to see where my money was going, I was able to trace patterns. And because I could trace patterns, I was able to break the ones that didn’t serve me anymore. I started doing this by using a Notion board where I tracked every cent I spent. I created categories and tagged each expense so that at the end of the month, I’d have a total sum of how much each “category” cost me. Building this database is the foundation of being wise with your money because it helps you -
a. Flag repeated expenses, some of which can be avoided
b. Notice if you’re overspending in one category and then question why
c. Create a realistic budget
2. Reason your expenses
Looking back at your list at the end of month can make room for not being able to recall why certain expenses were made. To tackle that, I created a notes column on my Notion database to reason any expenses that might not make sense at face value. For example, if I logged in, “burger from A&W,” I reasoned it with statements like, “treating myself,” or “didn’t have time to cook because xyz,” or “was out with friends,” etc. Putting a rationale to your expenses is usually what helps draw the line between an expense and a splurge. With your rationales in place, it’s time to audit your database.
3. Audit your database
Putting together a database and rationalizing your expenses is not enough. You need to spend time auditing it too. Look at every cent you spent and ask yourself, “Why did I spend this money? Was this an expense or a splurge?” If based on your “notes” and judgment, you deem the expense a splurge, highlight it. When you’ve gone through your list, take inventory of all the things you might have splurged on (if you didn’t that month, let me tell you, a splurge every now and then is a little necessary…for your own sanity as an international student…this is not me rationalizing my purchases of a million little trinkets). Is there a pattern to your indulges? What does that pattern tell you? For example, if you notice that you were spending too much money on takeout (I was), your goal to limit those expenses could be to create a healthy boundary and think about how you could incorporate cooking meals at home. If you don’t see a pattern to your indulges, question what that might be telling you. Maybe that’s a sign for you to judge if that expense really had to be made at that moment. Did you really need it or did you want it? If it’s all “wants,” creating a reward system might help. Now that you have the data, the audit and the pattern all in front of you, it’s time to create a budget that is unique to you.
4. Build a budget backed by data
Since you collected the data from your own experience, you have the numbers that work best for you. From groceries, transit, contribution to tuition, and miscellaneous expenses (trust me, you want to keep that grace space), having proof of what you’ve spent in the past helps build an estimate for the future. What I’d like to flag for you here is the importance of maintaining some breathing room. You don’t want to make a budget so rigid that you feel restricted, because feeling like that can lead to bitter emotions. That’s a rabbit hole you don’t want to go down on. So to prevent that, keep a $100-150 buffer to your estimated monthly expenses. One thing I did to make sure I didn’t feel guilty at the end of month was to hold myself accountable. What I told myself was - “The expenses have been made. It’s done and that can’t change. But what can change is next month.” So, if I went more than $X over my budget, I would account for it in next month’s budget; and that meant reducing my next month’s budget by $X. Holding myself accountable and giving myself restrictions (without feeling restricted) helped me develop a discipline towards my finances. One I strongly recommend you develop early on in your journey as an international student.
5. Don’t feel guilty for having fun
My last and final advice to you would be to make sure you don’t feel guilty for having fun. Sometimes having systems in place makes you feel like you can’t have a life outside of them. Having a budget in place does in no way mean you can’t treat yourself right or enjoy your time, taking in this new experience on a foreign land. All it means is that you reflect on where your money flows so that you’re able to hold down the fort should you need the funds on an immediate basis. Managing your money as an international student doesn’t have to be scary. You just need to know how to carve your own path and pick what works for you best.