Making money and getting a job is probably the first thing on your mind when arriving to Canada. You have a few savings to start off your new life. But unless the financial and banking system back home are identical to the one in Canada, the earlier you grasp these crucial tips, the better.
1. What is a credit score?
A credit score is your financial profile that determines how much of a risk you are in reimbursing loans and paying off your debt. Lenders will verify your credit score before lending you money. This information is required for financial transactions so you will need to build a credit history for the future even if you don’t need money now. The best way to build credit is by applying for a credit card and by making purchases with itand paying the amount by the due date.
2. What is corrosive debt?
Are you using credit cards as a source to to fund your daily expenses or your lifestyle? According to Doris Belland, debt for an item that takes money out of your jeans (liability) without putting it back in (asset) is corrosive debt. This is especially true if it comes with interest costs in the range of 18% to 24%.
3. Should I rent or own a home?
If owning property means living beyond your means, it should also be avoided. You may want to first rent and have an understanding of the expenses involved in owning a house before you make the leap. Before making such a decision, ask yourself: do I have a stable job, enough income and a pre-approval for a mortgage. Engage your financial advisor in this assessment.
4. Should I save?
The point of saving is to minimize the financial impact of an emergency. How much you save depends on you. The ideal situation would be to own a Savings Account for planned big item expenses, and an Emergency Fund for unexpected purchases or serious life events.
5. Getting things for nothing
Few things are ever free. Make sure to read the fine print on the documents before signing them. There is no obligation to always sign on the spot when presented with a document. If something is stated as free but you are required to make a purchase: then it’s not free. If you are not required to give money in exchange, you are probably giving away your personal data, your time, your patronage or some other form of commitment.
For specific legal advice, please contact Olalere Law Office for a consultation either by phone or Whatsapp at +16137997572 or reach us via email Olalere@CanadianImmigrationLawyer.com. We care to see you move, settle and prosper in Canada.
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