I wanted to start a topic to get ideas from fellow desis about frugal living.
As we all know, cost of living is very high in Canada and there are just so many ways that people spend money that can be avoided or economized.

If fellow desis can share their own ideas and experience, it will be very helpful to others, especially new or prospective immigrants.

Sometimes even a small change in habits or lifestyle can save hundreds of $$ in a year.

Here are some of my ideas, please add your own.

1. Quit smoking. Smokes cost a lot of money in Canada, and it also increases your health insurance rates, not to mention the bad effect on health of self and family.
This can save hundreds of $$ in a year.

2. When buying a car, think of cheaper insurance rates. Narrow down your selection of cars and then go with the one that has the lowest insurance, even if it doesn't have great style. You will save hundreds of $$ in insurance.

3. Buy a used car, rather than new. This will again save hundreds, maybe thousands of $$$. Of course, make sure that the car is in good condition and not a khatara.

4. Get rid of the cell phone. Most people think they cannot do without it, but it is only a matter of habit. Cell phone fees are a big rip-off in north america. You can easily save between $50 - $80 a month by dumping the cell phone.

5. Reduce consumption of electricity by turning off lights when not needed.
Minimise the use of the automatic cloth dryer - hang out the clothes outside (of course only during summer).

6. Use public transit (if possible) for daily commute.
It will save on insurance rates as well as gas.
If live and work within Toronto city, then dump the car altogether and save hundreds of $$ every month.

7. Buy produce from local farmer's markets, instead of big chains like Superstore, Loblaws, A&P, Dominion and Food Basics. Produce is usually cheaper and fresher there.

8. If possible, make most food items at home, especially things like yogurt, fresh cheese, etc.

9. Do not buy things from store at full-price. These are hugely marked up.
Always check the fliers that come in the mail and compare prices.

At the same time, do not go raving mad when there is a big sale on and end up spending thousands of $$ on goodies and fashionable toys.

These are the ones I can think of now.

Please add your valuable ideas as well.

I had a boss who taught me agood lesson : he used to say, why do all accountants keep spending their precious time in devising methods to reduce (or even avoid) taxes and expenses? If only they spent this time in creative thinking and efforts to increase productivity and profits, it would do everyone good.

Your suggestions (except for saving electricity) seem to be the same - instead of trying to use that time to increase production and earn more income, you have devised ways to increase the time and energy required to do every household or office chore. Like do not use dryer, hang out clothes (so waste time in first hanging them out and then taking them down and then folding them nicely so that you can keep it below your mattress to 'press' instead of ironing them), or buy a used car to save money initially and then discard it sooner than you have to discard a new car and in the process, spend more money and time in taking it to a garage for repairs which will be more than that in a new car, do not take a cell phone and then waste your time in public transport doing nothing when you could use that cell phone and get a lot of work (both office and home) done while 'transporting' youself from one place to another, etc. etc.

By the way, you say that Canada has a high cost of living. I differ on that. The same man can have more things in life - like house, car, gadgets, holiday trips, entertainment etc here in Canada than in India with the same intelligence and same no of hours of work. So infact wouldn't it prove that Canada's cost of living is infact lower?

Chandresh

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Chandresh

Advice is free – lessons I charge for!!

Hello Chandresh Ji,

It's ok if you don't agree that Canada has high[er] cost of living.

My point is not to prove whether Canada has higher cost of living or not.
I am trying to get ideas from fellow desis on economizing and frugal living.

While being interested in frugal living, I am also environment caring.
The more electricity we as a society use, the more we are damaging the environment.
Modern society cannot survive without electricity, gas, etc. but it is our duty to economize its use.

Remember the saying that "We have not inherited the earth from our parents - we have merely borrowed it from our children".

Anyhow, I agree that it is better to make a dent where it matters most, rathen than pinching pennies.

Everyone has to draw a line where they want to stop and just do it the modern way (washing, or drying or ironing, whatever).

I do stand by my suggestion of buying used cars.
I did qualify by saying that they should be in good condition.
I meant like 3 or 4 years old.

By that time, the first owner has eaten all the depreciation on the car.
If the car is in good condition, you can use it with limited repairs for many many years.

I have known people who bought a 4 year used car, ran it for 10 years till it was literally smoking, sold it (or donated it) and then bought another used car !

If you are careful in selecting a car, you will spend a lot less in annual maintenance and repairs then on the loan payments and high insurance on a new car.

Would you rather have an additional $5,000 in your pocket every year or prefer not to make one or two extra trips to the repair shop, if needed?

Anyhow, I am just trying to get ideas on how senior desis here economize and save.
Don't tell me that you don't economize or cut costs in any way !

If you do, please share ideas, if you don't mind.

I don't want this thread to turn into a debate - just post your own ideas.

Thanks everyone

I also don't agree that cost of living is 'lower' in Canada as stated by Chandresh, perhaps he is right when compared to India, the affordability in Canada may be higher than in India.
However it is all relative. Cost of living in the US is certainly lower than Canada.
and cell phone plans/fees are nothing compared to Canada.
for example even when we compare flight prices, they are outrageous in Canada compared to the US.

From a consumeristic perspective (although I’m an accountant) – my additions:

Try shopping for good prices on the internet. Particularly, stores like Sears and the HBC stores have a lot of deals online through their ‘outlet’ sites. Especially true of this time of the year, since they try to dispose off inventories that had been built up during the holiday season. Not everything is a bargain, but every now and then, you do get some great stuff. Shopping online cuts down the amount of time you would need to browse products when you’re buying branded. If you want to avoid delivery charges, pick up in-store from a store near you.

Participate in loyalty programs and redeem for rewards. I’ve hardly paid for car washes in the past 12 months, thanks to the Air Miles and Esso programs (would otherwise cost me about $40pm for 4 washes for 2 cars), have also picked up half a dozen CD’s (as in compact discs) thru Air Miles.

the idea of getting a used car is good becasue if u buy a new car, the second you drive it out of the parking lot it turns into a used car and it depreciates in value, so might as well get a few years old car in good condition, who someone needs to sell coz of money issues from buying that new car but had taken care of their once new car.

a money saving way shouldnt compromise quality as far as possible and everyone is a judge of that for themselves. some people would say buying bottled water is a necessity but that wouldnt sit well with me, so it is a personal choice.

i would not compromise on quality of moisturizing lotion but i would go for a cheaper brand tub cleaning agent. everyone is different though.

i would add that dont deprive yourself of something you need or like if it is inexpensive as only by going for it you can get it out of your system and move on. e.g. if u want to try out mcdonalds sandwich or starbucks. but do restrain yourself if you want a playstation...

those are just my ideas..

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smile ...

Mentality of Immigrants is what's effecting Canada to increase their standard of living. People in US don't tend to think of hanging their clothes outside to save electricity. That's why Canada has very few restaurants because many immigrants will not like to spend a lot of money out to eat.

I am from LA and people here live life like it's meant to be lived in America. It's funny how people complain about how expensive it is to live in Canada/America but yet they are willing to give up everything in India and come here, why? Just how you can't wear bikini and walk around in India, you can't hang clothes outside in Canada.

I guess the person who started the thread might have some clothes hanging in his balcony or backyard during summers (LOL) You act and behave differentely and then expect to fit in and make more $$$.

Dude, you guys got to change. The more people spend the better the economy gets. Maybe that's why Canada is not known as country who developes because people in Canada don't buy a lot of things so for Canada its wise to import items, it's cheaper.

Flight prices and almost many things are equallent when you convert Canadian dollars into US. for example you can go to Air Canada or America West.com and compare price from LA to Toronto, it's the same, they just convert the price accordingly. And many other things that I buy in LA is almost if not the same like in Toronto.



Anyways, didn't mean to insult anyone, just my .02