Living in Canada is great. The country boasts of high quality of life and plenty of opportunities. But, if you’re planning to relocate here, you’ll need to know what it’s like to live here. One of the things to know is how much you should earn to live comfortably in the city. So, what is a good salary for a single person in Canada?
The average monthly cost for a single person in Canada is $2,471 per month. Thus, a single person needs to earn around $40,000 after-tax salary to live comfortably. This covers expenses such as housing, transportation, food, healthcare, utility bills, and entertainment. This may vary by location.
Regardless, a good salary shouldn’t just cover the cost of living but also leave enough to save. Thus, earning above that should be the priority, especially since the average income in Canada is above $50,000. Here, we discuss the expenses that a single person in Canada needs to meet and what’ll amount to a good salary.
Expenses for a Single Person Living in Canada
As a single person in Canada, your monthly expenses will generally be lower than that of a couple or family, but that doesn’t mean it’s a good thing either. Since you’re most likely living alone, you’ll have to foot all your bills by yourself. Here are the expenses you’ll have to spend monthly.
1. Housing
Everyone needs a roof over their head. In Canada, like several other countries, that’s where most of your monthly income goes. Whether you’re living alone or splitting the rent with others, you’ll likely spend over 30% of your monthly income on housing. Housing costs for single people come in the form of rents. Fortunately, a single person in Canada will spend substantially less on rent than other households since they’ll most likely get a one-room apartment.
You can further reduce your cost by getting an apartment with others. In this case, everyone will have their private rooms, but there’ll be shared spaces such as the kitchen, laundry room, and sitting room. Of course, not everyone is comfortable with this arrangement. So, you need to make sure it’s suitable for you before doing it.
When determining the housing costs, location is key. Rent in Canada varies across cities and provinces. Generally, living in any province’s major or capital city will cost you more than staying in a small town. The average cost of monthly rent is $1,167 to $1,338. But cities like Toronto, Vancouver, Victoria and other capital cities have the most expensive options.
You’ll find a one-bedroom apartment that costs less than $1000 in several parts of Canada. The size of Canada makes it possible for you to still find quite cheap places, even in the most expensive provinces. If you can’t avoid living in a major city, you can cut costs by looking for a place in the suburbs or a bit far from the city centre.
2. Transportation
Unless you’re working remotely, a daily commute is part of your monthly expenses. Even when working remotely, you’ll still spend on transport as you have to go out for one reason or the other. Your mode of transportation in Canada can be heavily influenced by where you live. For example, staying in Toronto, Vancouver, Montreal, and several other major cities in the country might make it unnecessary for you to get a car.
These major cities usually have comprehensive transportation options such as trains and buses accessible for those within the central areas. You’ll find a taxi in every city too, and if you’re trying to go somewhere in style, there are ride-hailing services at your disposal.
But if you’re staying in the suburbs or a small town, you may need to get a car. In most cases, the transportation options in these areas aren’t sufficient or could conflict with your schedule, and a car is the best way to avoid getting stranded. Buying a car can be quite expensive, but it’s usually a one-time capital expense. On the other hand, the cost of maintenance, gas, and insurance can be quite high monthly. Canadian spend an average of
3. Healthcare
Thanks to the universal healthcare program, you might not need to spend anything on your healthcare in Canada. Even if you have to, it’s usually low, and private insurance can cover it. In some cases, your employer will provide access to this insurance for you. However, universal healthcare in Canada doesn’t cover everything, which means you might need to pay for certain things. So, it’s always good to set aside something for these costs. The average cost of private health insurance is $756 annually.
4. Food
This is the most important need of every person and even comes before the shelter. Fortunately, Canadians don’t spend much on food, whether eating out or buying groceries. In most cases, the overall cost of food is somewhere around $500 monthly. But it could vary significantly based on your age, gender, location, eating habits, etc. Still, food is one area where individuals can still reduce their monthly expenses by changing their habits appropriately. Habits such as meal planning, eating out less, buying in bulk, etc., can help save costs.
5. Hobbies and Entertainment
Depending on what you do for fun, you’ll also be spending some of your income on entertainment and hobbies. This covers everything from gym membership to a night out with friends. Each Canadian city has its entertainment scene with slight variation in costs. So, it all depends on how much you plan to spend.
6. Utility Bills
Utilities include gas, electricity, water, and garbage. You can’t spend up to $200 on this in most cases. But it’ll still depend on where you’re living, the size of your house, and how often you use these utilities monthly. Splitting the bills with others in your apartment can help you save costs to a certain extent. You also need to include the cost of internet and cell phones in your utility.
In Conclusion
A single person in Canada needs around $3,000 monthly; this means they have to be earning well above that to live comfortably in the city and still have enough to save.