How to Save for a Down Payment Without Upending Your Lifestyle

For most Canadian buyers, stockpiling money for a deposit means budgeting. And while living frugally can be a great way to save up some much-needed cash, not everybody is excited about the idea of cutting luxuries or splurges out of their day-to-day spending. Here’s how to stick to a saving-friendly regime while still enjoying life.

Keep spending on things that give you joy or boost your well-being. When you’re looking at expenses to cut, think about the things you don’t necessarily use on a consistent basis. Can you do without Netflix and Amazon for a year? How about that gym membership you don’t even use? On the flip side, if going to the gym helps boost your mental health and make social connections, keep it.

Ditch the complicated budget apps in favour of a single spending limit. If you have several different budgets for different areas of life—food, clothing, etc.—you might find it overwhelming to keep track of each one, not to mention frustrating when you go $5 over your grocery budget and $2 over your clothing budget and your app sends you angry emails. Keep it simple by sticking to a few main categories, like fixed payments (bills) and spending money. Then, put the rest of your income into savings.

Don’t compare yourself to others. One of the downfalls of social media is that it forces us to compare our lives to a very selected image of the lives of others. That gorgeous influencer who just closed on a downtown condo? That’s only half the picture. Trust that when it’s your time, your hard work will pay off. Keep your eyes on your own goals and don’t get distracted by what social media wants you to see.