5 Budgeting Steps for Filipinos in Canada

So, you’ve heard about budgeting and maybe even tried it once or twice, but it didn’t stick. Or perhaps you think budgeting will force you to cut back too much, leaving no room for enjoying life. 

Don’t worry—budgeting isn’t about restriction; it’s about giving every dollar a purpose. When you create a budget, you’re permitting yourself to spend on the things that matter to you.

As Filipino immigrants, budgeting in Canada comes with unique challenges. Not only are we covering daily expenses here, but we’re also often supporting family back home. 

Balancing these obligations with savings goals and the cost of living can feel overwhelming. However, a well-thought-out budget ensures you can manage all while working toward your dreams. 

Here’s how to create a budget that truly works!

Step 1: List All Sources of Income

To start your budget, list all your expected income for the month.

Include all sources:

• Income from your main job
• Income from part-time jobs or 2nd job
• Overtime or bonuses
• Child or Spousal Support
• Child Tax Benefit

Imagine Maria working as a healthcare aide on weekdays and as a cashier on weekends. Here’s how her monthly net income might look:

• Main Job: $2,500
• Weekend Part-time: $500
• Overtime: $300
  Total Income: $3,300

This total will guide how much she has available for expenses, savings, and that essential family support fund (remittances).

Step 2: List Your Expenses

Next, list all your monthly expenses  separating your needs and wants into 2 different categories. As immigrants, we often have expenses both in Canada and for family back home, so be sure to account for each in your budget.

Needs:

• Essentials like rent, food, transportation, bills, and family support.

Wants:

• Occasional treats such as takeouts, entertainment, and hobbies.

If you send a regular amount back home, create a specific line in your budget for it. For example, if you send $200 monthly, set it as a dedicated expense to manage this commitment while balancing other priorities.

Let’s see how Maria manages her budget:

• Rent: $1,200
• Groceries: $300
• Transportation: $100
• Bills (Internet, Utilities): $150
• Family Support or Pera Padala: $200
• Personal Savings: $100
• Fun Money (dining out, movies): $100
  Total Monthly Expenses: $2,150

This setup leaves Maria with $1,150 to allocate toward other goals, like additional savings or unexpected expenses. When you know the difference between needs and wants, it’s easier to cut back in areas that aren’t essential if your budget gets tight.

Step 3: Subtract Expenses from Income

Now, subtract your total expenses from your income to find out what’s left for other goals. Ideally, you want your income to match your expenses, creating a “zero-based budget.”

For Maria, after subtracting her $2,150 in expenses from her $3,300 income, she’s left with $1,150. Here’s how she might allocate it toward her goals:

• Emergency Fund: Building a small fund (about $1,000) for unexpected costs
• Debt Repayment: Using the Debt Snowball Method to prioritize paying off her debts
• Savings: Investing in Canadian registered accounts like TFSA, RRSP, FHSA, or RESP to grow her savings

In Maria’s case, her focus is on building a small emergency fund of $1,000 to cover unexpected costs while she works on paying off her debt. Once she’s debt-free, she can fully fund her Emergency Fund with 3-6 months’ worth of expenses to add a more solid financial safety net. After her Emergency Fund is complete, Maria can then start saving and investing toward her future goals. By assigning a purpose to every dollar, Maria knows exactly where her money is going each month, keeping her on track toward financial stability.

Step 4: Track Every Transaction

Tracking your spending is key to sticking with your budget. At first, it may seem tedious, but tracking reveals where your money really goes. Every time you buy coffee, pay a bill, or send money to the Philippines, log it.

Juan, another immigrant, found this step essential. By tracking expenses, he realized he was spending $150 a month on coffee. With this insight, he switched to brewing at home, which freed up money for a travel fund he’s building for a vacation to Palawan.

Pick a system that works for you, whether it’s a notebook, spreadsheet, or budgeting app. The goal is to keep yourself accountable and stay aware of your spending patterns.

Step 5: Plan a New Budget Each Month

Life isn’t the same month to month, so your budget shouldn’t be either. Some months, you’ll have extra expenses like birthdays, balikbayan boxes, or Christmas gifts. Planning for these “irregular” costs helps keep your budget on track and reduces surprises.

Before each month begins, review your income and expenses to make any necessary adjustments. For example:

• School Supplies: Allocate funds for back-to-school essentials.
• Holiday Gifts: Start a small monthly savings amount to cover Christmas gifts for loved ones back home.

Each month, adjust your budget to match these needs while keeping your bigger financial goals in mind.

Why Budgeting Matters (Especially for Us!)

Budgeting isn’t about limiting your happiness; it’s about finding freedom and peace with your finances. By giving each dollar a purpose, you get control over your money, reduce stress, and actually make room for guilt-free spending.

And don’t forget that budgeting is a skill. It may take a few months to get comfortable, but each month you’re creating a stable foundation for the better life you’ve worked so hard to build here in Canada.

So start now—give it a try and see how even a simple budget can create the change you need.