Surviving the ‘T-cession.’ How Torontonians are enjoying a high-cost-of-living lifestyle without breaking the bank

Despite the excitement over their upcoming wedding, high inflation and interest rates have meant looking for ways to stretch every dollar for Lyndsey Leask and her fiancé. 
Though the couple was already doing their best to save with their November nuptials fast approaching, rising costs have forced them into doubling down on frugality.
“Realistically, every cost has gone up so significantly that we didn’t have a choice on that,” says the 34-year-old Leask, an operations manager living in North York.
Many Torontonians are increasingly feeling the pinch. According to a September report by the Toronto Region Board of Trade, total spending in the city is down in recent months, signalling a “T-cession” — a downturn in economic activity — is upon us. 
Data collected by fintech firm Moneris during the Toronto International Film Festival last month bears that out finding that while we’re making more financial transactions — a 31 per cent year-over-year rise during TIFF — we’re spending fewer dollars compared with last year — an eight per cent decrease in dollars spent. 
While the Canadian economy is expected to expand moderately next year on the back of interest rate cuts, individuals are tightening their belts and remain cautious about their financial future.
It’s a phenomenon Charles St-Arnaud, chief economist with Alberta Central, calls a “me-cession,” where people cut spending and behave as if we are in recession — even though we’re not.
In practice, says Moneris’ Kipling Macartney, director of emerging solutions and value-added services, this suggests Canadian consumers still have disposable income, but appear pickier on where and when to spend, opting to hunt for value.
“People still want to participate and go out, and it’s not that money has dried up,” Macartney says. “It’s that people are looking for value for the cost of their experience.” 
If you want to get more bang for your buck and not sink into debt while still enjoying all Toronto has to offer, experts suggest spending within your means and judiciously planning short- and long-term savings goals.
For many, this will mean getting more creative, knowing when to say no and, yes — sticking to a budget.
For Leask and her partner, not sacrificing life’s pleasures while staying on budget includes making at-home cocktails instead of going to bars, swapping nights out at restaurants for relaxed park picnics, and turning grocery shopping into a date by heading down to St. Lawrence Market and taking in its sights and sounds. Occasionally, they’ll eat dinner at home and then head to a local dessert shop for an after-dinner treat as a substitute for a full — and expensive — dinner date.
They even invite friends over for at-home tasting menus that satisfy their inner foodies and encourages them to experiment in the kitchen instead of dishing out cash on high-priced restaurants.
“So, stuff that we just can’t afford to do at a formal restaurant anymore but we still like the experience,” Leask says. “Even if the food’s not as good — let’s be real.”
Jessica Moorhouse, a personal finance expert and host of the “More Money” podcast, says that advocating for yourself in social circles can help make expensive excursions more budget-friendly. If you can’t afford a proposed outing, speak up and make your concerns known, she advises. Using the so-called ‘loud-budgeting’ trend, you can go out just as often, but not overdo it.
“It may feel super awkward and uncomfortable,” Moorhouse says, “but no one cares about your money, you’re the only one that does. Why would you let someone else dictate how you spend your money?”
Similarly, Janet Gray, an advice-only certified financial planner based in Ottawa, encourages awareness and frankness above all. She says operating within your means is crucial. With digital banking and tap-to-pay all but ubiquitous, she recommends digital alerts and even self-imposed account freezes to keep yourself in check.
Even a separate spending-limited credit card used specifically for going out could build awareness of how often and how much you’re spending, she adds, building in hard stops along the way.   
“We just need to get really proactive about our money and aware of our money,” Gray says, “and make sure it’s going to the places that will pave your future rather than leave a path of regret behind you.” 
For Leask, this means planning and tracking weekly (and monthly) expenses using a spreadsheet that keeps her household aware of where their money is going and when. She logs her expenses every few days and breaks them down into categories that helps her subdivide and dissect her spending habits. 
“We really have better tastes in food than we can afford to pay for,” Leask laughs. “It’s just changed our approach to how we host people.” 
Ultimately, spontaneous spending doesn’t have to be avoided completely but is best confined to your budget, adds Jason Heath, managing director of Objective Financial Partners in Toronto.
“I personally don’t believe that life should always be about spending less money,” Heath says. “It should be about spending the amount of money that you can reasonably afford in the grand scheme of things.”