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Set up direct deposit and skip the monthly fee. Free to open, and the Easy plan has no monthly fee. Worth doing if you will actually move your pay or your CRA deposits over, not if the card sits unused. Code BREMO2026.
50/30/20 Rule — See exactly where your money should go
Enter your monthly after-tax (take-home) income to see how to allocate it.
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Get KOHO Free — Code BREMO2026The 50/30/20 rule, popularized by Senator Elizabeth Warren's book All Your Worth, divides your after-tax income into three buckets: 50% for needs, 30% for wants, and 20% for savings and debt repayment. It's a simple framework that works well for most Canadians earning $40,000–$120,000 per year.
These are non-negotiable expenses you'd pay even in a crisis:
This is the category that builds long-term financial security:
The rule was designed for US incomes and lower housing costs. In Canada's major cities, you may need to adapt:
| City | Avg Rent (1BR) | Recommended Needs % |
|---|---|---|
| Toronto | $2,300–2,600 | 55–60% (housing crisis) |
| Vancouver | $2,400–2,800 | 55–60% |
| Calgary | $1,800–2,200 | 50% |
| Ottawa | $1,900–2,300 | 50–55% |
| Montreal | $1,400–1,800 | 45–50% |
| Smaller cities/towns | $1,000–1,500 | 40–50% |
If housing forces you over 50% on needs, the adjustment doesn't mean you're failing — it means compress wants to 15–20% and maintain at least 15% on savings.
If 50/30/20 feels too loose, consider a zero-based budget where every dollar is assigned a specific job. This requires more tracking but gives complete visibility and is powerful for people paying off debt aggressively.