Create a Personal Budget

A personal budget is simply a plan for how you will allocate your after-tax income each month. It reveals where your money actually goes — which is often very different from where you think it goes — and identifies opportunities to redirect spending toward your financial goals.

The most effective budget approach for most Canadians is the 50/30/20 framework: allocate roughly 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment. Adjust these ratios based on your income level, cost of living, and financial goals.