![]() ![]() These included fixed expenses that are uniform and. If you live in Canada’s far north or in a city where homes are very expensive, you may have to cut back more than an average Canadian would in the “Food” or “Housing” categories in order to afford your higher living costs. Expenses that are mandatory to maintain your quality of life. ![]() Spending more in one category may mean that you’ll have to cut back in another category to make your budget balance. Life is all about choices, but you can’t choose the maximum amount in all spending categories. ![]() Thats the money you have right now to allocate to each expense category. These guidelines are only recommended ranges. Check out this list of more non-monthly expenses you might want to add to your. You may also notice that if you spend the maximum amount in every category, you’ll exceed 100% of your income. It’s important to know there is nothing wrong with exceeding this limit as long as your budget balances (your expenses don’t exceed your income). However, if you happen to have young children in daycare, have high education costs, take nice vacations, tithe, or have hobbies or recreational interests that aren’t cheap, you’ll quickly exceed the suggested maximum for this category. In the essentials category, include fixed expenses such as housing costs, insurance, student loan payments, tuition, and car payments, as well as necessary. The guidelines suggest you spend 5 – 10% of your income in this category. The category in these guidelines that people will most commonly exceed is the “Personal & Discretionary” expense category. Don’t rely on credit for these unexpected expenses.
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