Financial planning is very much necessary especially when you arrive in a new country to live and work. However, you can split your plan into short term and long term<\/p>\n
Here are some of the essential steps (leaving opening bank account) which are equally applicable and important to your short and long term financial plan.<\/p>\n
Open your Bank Account
\nThe first step is to open a bank account as soon as you arrive and start settling. If you are married and have children then you may like to have a joint bank account with your spouse as your Canada Child Tax Benefit (CCTB) money may be deposited directly to your bank account. Here are websites links of some banks and financial institutions:<\/p>\n
Bank of Montreal \u2013www.<\/em>bmo.com<\/a> Some banks are offering many incentives to newcomers. It is better for you to have that information, compare and then decide which bank is suitable to your needs.<\/p>\n There are many factors to consider when you choose a bank to open your bank account. You may ask these questions before you make up your mind to open a bank account:<\/p>\n Budgeting is an important step towards financial planning. Many newcomers and immigrants think that they will prepare their budget when they would start earning. This is not a good planning approach. You should have your budget in place whether you earn or not. Even if you don\u2019t have any source of earning in the beginning, you have to spend the money on bills, grocery and other items anyway. Sobe careful in your spending and try to draw a very clear line between the \u2018need\u2019 and \u2018want\u2019.<\/p>\n When you start earning, revise your plan based on your net pay or take-home pay. Take home pay is the amount that you receive after usual deductions income taxes, employment insurance (EI) and retirement pension contributions etc. This deduction may range from 15% to 30% of your earnings. If your income is under taxable limits, you may get some of your deducted income tax amount back when your file your annual income tax.<\/p>\n List down all your expenses<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rent \/Mortgage Also calculate your earning including income from employment, CCTB and GST\/HST credit .<\/p>\n It is a good practice to look and analyze your budget at the end of each month and adjust your next moth budget accordingly. This exercise would let you know where you actually stand. Keep a close eye on your bank statements. It will give an exact idea about your earning and spending and the bank charges as well.<\/p>\n When you feel that you are gradually settling start saving for children education through Registered Education Saving Plan (RESP) and also for your retirement through Registered Retirement Saving Plan (RRSP)<\/p>\n If your situation permits, you may start saving money to buy a house and therefore, arranging the down payment for it. However, don\u2019t make a hasty and emotional decision to buy a house. Give your time till you have some steady and guaranteed income and you know where you want to live.<\/p>\n Financial planning is very much necessary especially when you arrive in a new country to live and work. However, you can split your plan into short term and long term Here are some of the essential steps (leaving opening bank account) which are equally applicable and important to your short and long term financial plan. … Continue reading Financial Planning<\/span>
\nCanada Trust –www.tdcanadatrust.com<\/a>
\nCIBC –www.cibc.com<\/a>
\nRoyal Bank RBC – www.rbc.com<\/a><\/p>\n\n
Prepare your budget<\/strong><\/h3>\n
\n–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Public Transport \/Car expenses
\n–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Insurance \/Bills
\n–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Internet\/Telephone
\n–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Grocery \/ House keeping
\n–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Clothing
\n–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Health \/Medication
\n–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Entertainment \/ Socializing
\n–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Others<\/p>\nLong term goals<\/strong><\/h4>\n