Financing a move to Canada: Smart ways to make your money work for you

Moving abroad can be a thrilling time. You will get to experience a new culture, meet new people and find new franchise opportunities.

Financing a move to Canada: Smart ways to make your money work for you

Moving abroad can be a thrilling time. You will get to experience a new culture, meet new people and find new franchise opportunities. It can also be a daunting task as you set up your new home, start a new job and move away from the support system you’ve always known. One of the most important things you can do when you relocate is ensure that you have enough funding to live comfortably.  

This can be challenging to plan for, as you will often not be fully aware of all the costs you will face until you are living in Canada. It is crucial to prepare as fully as possible. Research as much as you can about the area you will be moving to and find as many ways to make your money work for you as possible. This article will explore some of the best ways to fund your relocation to Canada.  

Make a budget and stick to it

The first step of any financial plan should be a budget. You should work out your budget the moment you decide to move to Canada. Work out how much you will need for the initial move – travel costs, movers, visa fees and the initial cost of renting a place to live. You will need to ensure you have all this and more when you make the move.  

It can help to sit down and assess your monthly income and outgoings. Write everything down and see if there is anything you could pare back on. For instance, if you have multiple TV streaming subscriptions, you could cut back on these and save the money instead. Once you have worked out your budget, you should stick to it strictly.  

Pay down your debts

Moving while in debt makes the entire process more difficult. The more debt you have, the more you will be paying each month in interest and other associated fees. In this scenario, spending money can help you to save money. Paying down your debts means fewer monthly outgoings and less money spent over time on interest. If you are in significant debt, it may be beneficial to put off your move until you have reduced the debts significantly.  

Make smart use of credit cards

The credit cards you use can have a big impact on your finances. You should look for credit cards that offer cashback or rewards for using them. For instance, you could get cashback credit cards that offer 2% cashback on purchases from a specific brand or of a particular type. Over time this will earn you money with minimal effort on your part. Ensure you read the fine print to be sure the credit card will be worth it for you. Consider the places you shop and choose a credit card that will be most effective.

Choose a high-yield savings account   

Look for savings accounts that offer 1% or more interest rates. Savings accounts can be one of the best ways to make your money work for you without significant input from you. You should shop around to find the best high-yield savings account. You should consider all of your options, including smaller and online-only banks, to find the best savings account on offer.  

You should always look into a bank and savings account thoroughly before you settle on one. Ensure that you will be getting the most from the account and that the bank is stable and reputable. Once you have opened your savings account, you should put as much into it as possible to make the most of the high interest rate.  

Get advice from friends and family

If you are unsure how best to handle your finances, getting advice from friends and family can be beneficial. You should choose someone with good financial health and have an open and honest talk about your financial goals and your plan to relocate to Canada and ask for their advice. They will be able to give you advice without any agenda. 

Consider the different people in your life, and choose someone you trust. Let them know that you admire the way they’ve handled money and finances and that you would be grateful if you could pick their brains for an afternoon to help you budget and plan your finances.

Talk to a professional

After speaking to a trusted loved one, talking to a professional can be a good next step. Often finance professionals will have a vested interest in offering you a certain product or specific advice, which is why it is beneficial to speak to a loved one with your best interests at heart first.  

A professional will be able to build on the advice you’ve already received and offer further insights. Talking to a loved one beforehand will ensure you know exactly what you’re looking for from your financial adviser. Financial professionals can be particularly helpful with more complex or niche financial concerns, such as funding a business or your investment options.

Build an emergency fund  

It is crucial to have a solid emergency fund before you relocate to Canada. Ideally, this should be as much as six months’ wages. This will ensure that you have an excellent cushion for your moving expenses and any unexpected costs that may arise, as well as give you plenty of money to invest in your new accommodation in Canada.  

Invest in Canadian stocks 

Investing is an excellent way to make your money work for you. It can be daunting to know where to start on your investment journey. You will need the money to invest, a reliable broker and an idea of what kind of stocks you want to invest in. You should choose a trustworthy brokerage that you know will keep your money safe and have your best interests at heart. 

Before investing, it is essential that you do your homework and understand how stocks and the stock market work. There are plenty of helpful resources online to help you get started. Take a look at this excellent article from Wealthsimple for a guide on buying stocks in Canada and some excellent tools to help you start on your investment journey.  

Consider passive income

Passive income is often seen as the holy grail of making your money work for you. It is income that accumulates every month without you having to work at it. Investing in stocks, as mentioned above, is an excellent form of passive income.  

Another popular form of passive income is investing in real estate. Owning properties to rent allows you to make income each month with minimal effort on your part. It is important to note that managing multiple rental properties can become time-consuming, so if this is your goal, it may be beneficial to find a reliable property management company to deal with the day to day on your behalf.

Continue your education

Investing in yourself can be one of the smartest ways to make your money work for you. The more qualifications you hold, the stronger your worth will be in the jobs market. You should consider the different career paths ahead of you and look into the various training and educational opportunities you could seek out. It can help to consider your education as the way you market yourself – making employers keen to offer you the best jobs and the highest salaries.  

Start a side hustle

Starting a business on the side can be a great way to boost your income. Consider your skills and what you have to offer. For instance, you may be a whizz at web design, copywriting or accounting. All of these skills and more can earn you a decent supplemental income through freelancing. This can be an excellent way to boost your finances and make your relocation easier.  

Factor in your retirement

It is crucial not to forget about your retirement when it comes to financial planning. Whether you plan to remain in Canada indefinitely or return to your home country, you should ensure that you consider what you will do when you retire. The earlier you plan for retirement, the more comfortable you will be when the day arrives. You should ensure that you invest as much of your monthly income as possible into a high-yield pension plan.  

Invest in promising businesses or a franchise

Becoming a silent partner in a business can be an excellent way to make money while letting someone else do the hard work of running a business. In return for your investment, you will receive a portion of the profits if the company succeeds.  

Investing in a new or promising business is not without its risks. If the company fails, you will lose out on your investment, and you will have little to no control over how the business is run.  

Find a furnished property

When looking for a place to live in Canada, it can be beneficial to find somewhere that comes fully furnished. This means you will have to spend less to get yourself set up in your new home. It is a good idea to look at multiple properties to find the one that will give you the best home base for your first months in Canada. Consider options for accommodation that includes all utilities as well as furniture. 

ABOUT THE AUTHOR
Zoe Price
Zoe Price
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