Ask any immigrants and we’ll tell you that one of the major reasons why we came to Canada is to explore better opportunities. And what does that translate to?
A lot of our successes depend on our ability to stay afloat and manage our finances. Period.
We, at The Immigrant Life understand the importance of having firm grip on our finances. Why? We’ve been there too. Or rather, it’s part of our daily struggles and realities. And sharing lessons learned on the way is our way to helping another fellow immigrant. We all have our different realities but it pays to leverage on the experiences of others.
Having the right attitude towards money and expenditure will help us stay on track. We need to learn, as immigrants, how to pay off our debts and break the cycle.
Scary Economic Realities
Bloomberg reports that 60% of Canadians face insolvency while 1 out of every 5 Canadians say their debt situation is worse than it was 5 years ago. The same study reveals that respondents say that they are within $200Cad of not being able to cover their monthly bills. 49% of respondents also said that they aren’t confident in their ability to cover their expenses without going into debt.
Statistics Canada reveals that on the average, Canadians owe $1.50 for every dollar of disposable income that comes their way. Meaning that we are spending twice on the average of what we earn.
However, think about this. No one was born with debt.
So, how do we end up being in debt?
Oftentimes, debt creeps in unconsciously. At other times though, we go into it conscious of our decisions. It then gets to a point where we literally no longer care after trying so hard to get out of it. It then becomes a rat race. The more we try to get out of it, the more we get into debt till we end up resigning with frustration.
A major way out of it is to have the right perspective of money. Money is a reward for solving a problem. It is not what you work for but what you attract. Having the right attitude towards money and expenditure will help us stay on track. We need to learn, as immigrants, how to pay off our debts and break the cycle. The more we get a grip on our habits and make the right decisions, the more we will get out of and stay out of debt.
Also if you just immigrated to Canada apart from acclimating yourself to a new country, home, and job, you’ll also quickly realize the benefits of building a credit history. Whether you’re looking to lease a car, buy a home, get a cell phone, or get a credit card, you’re going to want to start building a credit history right away to get access to lending products at the best rates available. Financial institutions use your credit history after it’s been established for a period of 18 months. It also involves other factors like your savings history, net worth, income and ability to provide a security deposit, such as a down payment on a mortgage. These strategies should go a long way towards establishing a credit history for new immigrants that will prove critical when you need support to build on that dream.
Listen more to the Episode 72 of The Immigrant Life Podcast.