Living in another country and starting a new life is always both terrifying and exciting. You might face new challenges you have not experienced. You might also learn a lot and grow in the process. Among the many struggles you may come across, the last thing you want is to mindlessly spend the money you have.
Planning to live in another country would always require a good amount of money. Whether you have submitted your application or still planning to apply, it would be best to have a solid fund that you could use when you decide. Creating your budget as early as now can help you identify how much you need to save.
Budgeting Tips for Canada Immigrants
To prepare yourself and prevent any financial emergency when you find yourself in Canada, here are some budget tips to keep in mind:
Your lodging is the most important concern you should have when you immigrate to Canada. Unless you have family members, you can stay with them. You need to decide whether you should rent or purchase a house. The answer depends on your financial situation and personal goals.
For example, if you plan to stay in the country during the validity period of your visa, then buying a house is not the wisest decision. However, if you plan to live permanently in Canada, perhaps home properties should be one of the first things you should do.
If you plan to do the latter, Remax Canada’s 2021 Housing Market Outlook can give you an idea of how much a house might be. This prediction table says that owning a home in Vancouver might require $1,320,800 while you would need $291,976 if you want to live in Winnipeg.
If you are not ready for that amount yet, you can always rent instead. Like other countries, the cost depends on the size, area, and demand in the location. According to Rentals.ca’s data, the average rental rate in their listing is $1,675 per month.
Another crucial factor to consider early is your mode of transportation. One great thing about Canada is how efficient its public transportation system is. You can get by even if you do not own a car. If you travel for school or work and want to save up for a vehicle, start looking into car prices in Canada.
At the beginning of this year, the average vehicle prices in Canada amounted to $40,000. The recent average cost of car insurance, a legal requirement in the country, would cost around $717 to $1,832.
On Food and Utilities
Other things you should add to your list is the following daily expenses:
- Food budget
- Electricity budget (Take note: Canada is a country with four seasons. Therefore, you would need heating and cooling.)
- Water budget
- Internet budget
- Miscellaneous/emergency fund
It would be best if you look into the latest average expense for each item.
On Health Insurance
You do not want to get sick in another country and feel helpless about your bill. Luckily, Canada offers free universal public healthcare coverage to all permanent residents and citizens. However, it still has limitations, depending on what province you live in.
Research on this and prepare a fund to address any health emergency you may encounter. Ideally, it would be wise to have health coverage before or upon your arrival in the country to cover those not included in the government’s offer.
Preparation is the secret to a more comfortable life abroad. By doing your research and budget planning as early as now, you can manage potential problems faster and more efficiently. Moreover, you can find solutions beforehand and avoid any stress or anxiety buildup. To help you prepare better, read through our other blog posts to find the best way to immigrate to Canada.
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