As a newcomer in Canada, you’ll be making numerous important decisions as you settle into your new life. While it’s not always easy and you’ll definitely be facing challenges, your decisions from the get-go will impact your life immensely in the coming years. It is thus incredibly important to make prudent decisions in order to reap its benefits later on. Money saving tips are essential especially for a newcomer.
If you’re a newcomer in Canada, you would have probably done your research on how things are in the country and the cost of living. If you’re planning to go and you’re reading this blog, you’ve already taken the first step toward your research!
Earning money in an unknown land and managing your finances is definitely a very precarious task. First and foremost, as a newcomer in Canada, a basic understanding of how to earn, save, and invest your finances will help make well-informed decisions. This basic but holistic understanding will able you to lead an efficient life and help you achieve your long and short-term financial objectives. So, Let’s learn come money saving tips here:
Knowledge is Power, So Know and Understand the Basic Terminology!
In a foreign country, you’re bound to feel out of place and a little confused about how to make your money, but learning the technical and financial nuances can help you in the long run. No matter if you’re in a new country or in your own home, a basic understanding of your finances help in managing your funds efficiently.
It is imperative for you to handle your investments judiciously, the money you borrow and spend should be a careful decision made after a moment of thoughtful deliberation.
A golden rule which has been recommended throughout the years in this situation must be remembered – expenses must be incurred after wise and thoughtful allocation of your money toward all the investments you’ll make, funds for any emergency situations, or paying toward any Insurance that you have. As a newcomer to Canada, you need to be mindful of ways to earn and invest. Some of the steps to keep in mind are:
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Budgeting
When it comes to handling and managing your money, the assured step is budgeting. Budgeting helps to have a proper hold on the money you make and how prudently the money multiplies. You can use tools to better manage your funds as well, use a spreadsheet to make a note of your income. Make a spreadsheet that is realistic and the budget is detailed with the various forms of income you have and the fixed and variable expenditures into account. Budgeting can really help you in your money saving in Canada.
Keep in mind that you may have to shell out money for regular needful expenditures like accommodation, commutation and groceries to name a few. Alternatively, you may segregate other miscellaneous expenses under the “wants category”.
Moreover, adhering to your set budget will aid you in collecting your wealth and will help you save a huge sum of money. This now collected wealth will help you achieve your financial goals on top of the personal goals you’ve made which in turn tremendously improves your standard of living.
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Self-Educate About Canadian Banks
Unlike most countries, Canada has two types of accounts: Chequing Accounts, and Savings Accounts. Chequing accounts are primarily used for payments, and for transactions on a daily basis. In contrast, the savings account carries lower interest on the amount deposited and the account user usually refrains from depositing all their money in the savings account.
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Improve your Credit History in Canada
It is mandatory in Canada that the credit system is maintained well. If the credit is well-maintained, the result enables you to make investments, purchases etc. A good credit score can really save your back when you’re planning to make more difficult decisions. A good credit score has proven benefits like flexibility, purchases made stand free from exchange rates or even acquiring loans becomes easier.
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Beware of Fraudulent Transactions
Being aware of fraudulent translations is applicable to any individual irrespective of being a newcomer or not. You can meet with fraudulent activities in any country, and it’s important to look out for such dishonest individuals and deceitful acts. It’s best to get it checked with your bank or with the concerned organization to avoid any unscrupulous activity.
Little Tips to Save an Extra Buck
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Be on the lookout for already furnished apartments for rent
Furnished homes can make your lives very easy because they save you the hassle of going out and selecting and buying new furniture. So you save a lot of effort, money, and time. It also saves you the inconvenience of wondering what to do about the furniture when you move out.
When you’re new to a country, it’s very likely that you will move to someplace else, finding a better fit for you, someplace that meets your budget and your convenience is essential. And keeping tabs on such apartments can make the difference.
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Live close to amenities
Your life becomes much easier if you choose to live close to amenities and it also serves as an excellent cost-saving idea. If you check your expenses toward the end of the month, you’d probably notice that petrol/diesel takes up a massive chunk of your expenses. Living near your school, office, grocery stores, and places you often visit means that you could casually walk there and save a lot of money.
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Buy clothes in the clearance season
Another great money saving tip is to buy out of season. You can purchase brand new clothes up for huge sales from clearance! Most clothing stores put out-of-season clothes and other items on sale with great discounts. You could end up saving a lot of money just by buying clothing for the future than right now.
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Bike or cycle for shorter distances
Not only is it great exercise, but biking or walking can help you save a lot of money. It is one of the best ways to travel from one place to another. Again, this is beneficial only for shorter distances. Also cycling or walking is great for fitness purposes, hereby a win-win for multiple reasons.
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Use public transport
If you have to travel for longer distances and walking or cycling is not feasible, consider using public transport. There are numerous reasons why you should choose public transport over your own car. If you buy a car, you need to pay for car insurance, maintenance, and gas. Not to mention the cost of purchasing the car itself. Having a public transport pass costs around CAD 150 a month, that is a very good price compared to owning a car.
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Sign up for grocery store weekly flyers
Most grocery stores in the country offer weekly flyers that give discounts on some items. A few of these grocery stores will need you to sign up for their flyers to give you access to the discounts but a lot of them will not.
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Practice the art of cooking
It is tempting to eat at a restaurant, just stop by and pick up a burger but it may not always be a good choice, both financially and for your health. It is one of the greatest money saving tips, to cook your own meals. If you’re craving a particular food, you can get the ingredients and cook yourself a gourmet meal. It will definitely cost you a lot less than the ones in restaurants..
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Shop in thrift stores
Another one of the great money saving tips in Canada is shopping in thrift stores, which can surprisingly save you a lot of money. Shopping in thrift stores rather than some fancy branded stores is cheaper and more sustainable. You can find vintage clothes in thrift stores for massive discounts, sometimes 95% lower than their original price!
Some people are concerned about the quality of the products they buy but when you’re buying make sure to inspect the quality of the clothes well and you are good to go. Usually, thrift stores themselves will sort the good stuff and throw away the bad before they stock their shelves.
A penny saved is a penny earned, and these cost saving tips will sort you well for your shift to Canada. All money you earn when saved judiciously goes into your wealth accumulation and will help you in achieving your long-term goals.
Newcomers in Canada must be vigilant of the steps taken, as any new move can make or break your future goals. Whenever or wherever possible try to save your earnings and be prudent in your decisions so you see better results for yourself.
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Frequently Asked Questions
Budget and segregate your expenses and spend your money thoughtfully and judiciously. These little money saving tips in Canada will definitely help you a lot.
Redesign your budget and make it fit your needs and wants, do not overindulge yourself in material desires, invest prudently. Coupons and flyers are beneficial for finding out any deals or discounts that you can benefit from. These cost-cutting strategies will help you in your wealth accumulation.
Follow the rule of thumb- 50/30/20 rule! spend 50% on needs, spend 30% on wants and save 20% of your income.
In Canada, the average saving was 9,972 (Canadian Dollars) in 2021. In 2021, Canadian households saved on average of roughly 3,133 Canadian dollars less than in 2020.
Money saving in Canada is not a trend that is observed often. Many factors like emotions, knowledge, habits, and other behaviors lead Canadians to save lesser amounts of money. But the country is witnessing a shift in their average savings post-pandemic. How can I do cost-saving in Canada?
What are cost-cutting strategies?
What is the best way to save money in Canada?
How much is the average Canadian saving?
Why do Canadians save so little?
