How to manage your finance as an immigrant in Canada – You are reading this article means you want to immigrate to Canada or you are a new immigrant in Canada thinking of how you can manage you finance properly.
Immigrating to a new country can be overwhelming and a Canada like Canada where some provinces and cities are quite expensive to live in, you will have to prepare yourself financially to be able to cope with life in these places.
Canada is a wonderful and lovely country to immigrate to and presently it is welcoming a lot of immigrants from different places as it has initiated an agenda to invite about a million immigrants into the country within 2021 to 2023. So it would be wonderful being among the immigrants that would be immigrating to Canada but you wouldn’t want to be stranded in a new country because of lack of proper financial management.
Managing your finances properly will help you gather yourself in your first year of immigrating to Canada and help you meet some basic needs of staying in the country like accommodation, food, clothing and other necessities.
It is not really easy getting used to the way of life and spending as an immigrant and you cannot fully prepare for this but you will have to on your own part work on how you could always have funds to fall back on in times of emergencies because sometimes you might not really have anyone there.
To help you adapt easily and faster to life in Canada as an immigrant, we have highlighted some ways you could try to manage your finances as an immigrant in Canada and make sure you enjoy every bit of it without being frustrated. These tips are going to help you live in Canada without running into debts.
Without further ado, let’s proceed…
- Prepare a budget
The first thing in trying to manage your finance and also save up money as an immigrant in Canada is to create a budget. Are you wondering how creating a budget will do the trick of managing your finance? Well, it will actually help you know what to spend money on and what not to spend money on. It will help you monitor and curtail your spending. Life in your country and Canada might be quite different but creating a budget will help you control your finance no matter where you are.
As someone that is new to the environment, you will have to understand the cost of living in the province or city you are staying and set your budget in par with it. You budget could be daily, weekly or monthly depending on the individual but try creating a comprehensive monthly budget of things you spend money on and know your wants and needs.
This budget will help you control your finance and help you save money too. It will also help you prepare for unplanned events as you will have some reserves in your budget as miscellaneous.
- Stick to your budget
One thing is preparing a budget and another thing is actually sticking to that budget. Well, we won’t say that it is always rosy and easy to stick to the budget you have prepared but you will have to put your mind to it if you actually want to manage your finance properly.
When you follow the budget you have prepared, you will be able to monitor your spending and also save up money. You will have to spend according to what is in your budget and you budget should be created in a way that your expenses doesn’t exceed your income or money coming into your pocket so as not to incur debts.
- Cut down on your expenses or spending
You are in a new country; you wouldn’t want to be extravagant especially if you didn’t come for vacation or sight-seeing. If you came to Canada to work and live, you will definitely have to cut down on your expenses and the best way to do this is following your budget.
As an immigrant in Canada, try to spend money on your needs rather than your wants but in order to do this, you will have to know your wants and needs and be able to differentiate them and also arrange your needs according to how pressing they are.
It can be expensive living in Canada but you shouldn’t spend money unnecessarily.
- Know the banks in Canada
This also is very important as it will help you know the bank that is close to you and the type of bank account to open while in Canada. There are actually five major banks in Canada and some other smaller banks in communities and online.
Whatever your financial needs may be, you will have to get acquainted with the bank that is close to you especially if you will be receiving frequent cheques from your home country.
You can decide to open a savings account or a checking account in one of the banks in Canada. The savings account will keep some funds as savings as you won’t really have access to it on a day-to-day basis and it will be for future purposes unlike the checking account which is for day-to-day transactions. Either of the account depends on the individual.
- Understand your cash flow and be in control
This is where some immigrants get it all wrong. What is your cash flow? It is actually the way money comes in and goes out of your pocket and you will have to understand how money comes in and goes out of your pocket to avoid cash flow mismanagement.
Understanding your cash flow will guide you in preparing your budget and knowing how to spend money. You will have to be accountable for every dollar you spend as an immigrant whether on grocery, rent, clothes etc. you have to be in control of your cash flow.
- Use credit card
A lot of people have some misconceptions about the use of credit cards especially if you are not used to using it but the truth is that credit cards will help you curtail your expenses if you do it right. With the credit card, you don’t need to carry money around and you could pay for goods and services using the card at stores that accept the card.
The credit card is given to a customer or cardholder with the condition to pay back the borrowed money in the card at an agreed time and with or without interest. The card allows you purchase goods and items and if you use it wisely, you won’t run into debts.
The credit card is not for luxury but for necessities and as an immigrant, you should be careful on how you use credit cards so you don’t incur so much debt.
- Don’t engage in impulse spending
One thing that will make you overspend is impulse spending and this is spending money on things you didn’t plan for. For you to manage your finance as an immigrant in Canada, you will have to avoid impulse spending and make sure you stick to your budget. Unless that needs is very important, if it not on your budget, don’t spend money on it.
You will have to have financial discipline and self-control when it comes to managing your finance.
- Try to get a job in Canada
When immigrating to Canada, you will have to work on getting a job either before you immigrate or after you immigrate to the country. There are some immigration programs that require you to secure a valid job offer before you can be eligible for the program and this is also important as it will help you stabilize even in your first year as an immigrant.
There are many job opportunities in Canada and the Canadian government is trying to hire foreign skilled workers to come fill the labour shortages in the country. So if you have a skilled or work experience in an occupation that is in-demand in Canada, you wouldn’t have a problem securing a job in Canada even as an immigrant and this will also help you in applying for permanent residence in the country.
Try to look up for occupations in-demand in Canada under the National Occupation Classification (NOC) under the Federal Skilled Worker Program and Federal Skilled Trades Program.
- Immigrate to a province that is less expensive to live in
Well, many people will want to immigrate to provinces or cities where there are high job opportunities. It is good but this comes with a price you know. Cities like Toronto, Vancouver, and Montreal are populated and industrious but also they are expensive to live in.
It might not really be easy to live in these cities unlike living in the Atlantic Provinces or other less expensive provinces. There are still job opportunities in the less expensive provinces or cities and you will still get to save up money too.
- Cultivate saving habit
This is very important for everybody and as an immigrant; you will have to take this seriously. Cultivating saving habit will help you save up money and prevent you from being taken unawares by unforeseen events or emergencies. Though you cannot really prepare for emergencies your savings will help you take care of these unforeseen events even before thinking of borrowing. It will also help you to meet up with your needs and pay up bills early.