Establish your plan for financial success: Five tips for reaching your savings goals
Credit to Author: Daniela Cohen| Date: Thu, 23 Mar 2023 15:27:01 +0000
During her first five years in Canada, working multiple service jobs to earn a living, Andreina Romero almost gave up on her dreams of further education.
Finally, with the encouragement of her family, in 2001, she finally applied for college and then university at 25 years old.
“I had no funds saved for school whatsoever, so I asked for a student loan and grant,” says Romero. “I was already married at the time, so for the first two semesters, I focused on my studies, and we got by with my husband’s salary. I refused to ask for another student loan after the first one for fear of accumulating too much student debt.”
Over the eight years Romero spent completing her bachelor’s and master’s degrees, she took on numerous jobs, including working at a university cafeteria, at the food court in her neighbourhood mall and as a tutor, yet she was perpetually short of funds.
“At one point during the last semesters of my master’s degree, I had three jobs: I was a TA in the department I studied at, I was a French tutor and I worked at a downtown Vancouver bookstore,” says Romero. “I visited, in tears, the student financial services at my university, more than once. The severe financial strain I was in during my studies dissuaded me from pursuing one of my dreams, going for a PhD.”
Romero’s story is not unusual. Making ends meet as a newcomer to Canada already poses a challenge. Saving for larger financial goals, whether that’s paying for tuition, buying a home or starting a business, may sometimes seem impossible in the short term.
Other than working extra jobs like Romero did, here are five tips that can help you save money to reach your goals as an immigrant or refugee in Canada.
Tip #1: Identify and set your savings goals
Come up with a concrete financial goal you’d like to reach in a set time frame. Write it down and then and break it down into monthly amounts, even if they are small. Commit to meeting your monthly savings target, and pay yourself before spending money on less important expenses.
Tip #2: Create your savings fund
The easiest way to achieve Tip #1 is to have a separate bank account for your savings. If possible, have your monthly target amount automatically transferred into this account each month. This way, you resist the temptation to use those funds for other things.
Tip #3: Where possible, cut your costs
This can be complicated during a time of rising costs but look at areas where you can cut expenses in your life. These may be temporary sacrifices until you get closer to your financial savings goals. As well, compare prices when buying items large and small, find promotions and deals on goods and services, and consider what purchases you can put off and which you can’t. A library card, for example, can get you discounts in some communities. Meanwhile, better deals can often be found on smartphone plans, credit cards and groceries with a little online research.
Tip #4: Get expert support
Talk to a trained financial advisor for counsel on short-term investments that can grow your savings faster. These professionals can also help you strengthen your savings plan, understand your financial behaviour and recommend strategies to boost your savings.
Tip #5: Explore whether a loan can help you reach your financial goals, faster
In some cases, borrowing money can be the right choice for you as a newcomer to Canada. For example, Windmill Microlending, a Canadian charity offers affordable microloans, of up to $15,000, exclusively for skilled immigrants and refugees to cover costs of professional development courses, training, accreditation and licensing costs, even childcare and cost of living while you study. A loan from Windmill has helped their newcomer clients to grow their incomes more than three times. Furthermore, 97 per cent of Windmill clients repay their loans in full.
Take the time to explore which of these, or other options, could help you get closer to your financial savings goals. Like Romero’s journey, the path toward your goals might be difficult at times, but they are ultimately achievable.
The New Canadian’s Financial Pathway to Prosperity, an informative guide presented by Canadian charity, Windmill Microlending, shares tools and tips to help you build a financial foundation in Canada while setting you up for long-term prosperity. As a charitable organization, Windmill focuses on supporting immigrants and refugees in establishing their lives and careers in Canada, offering affordable loans to pay for the costs of training, education and professional development. Learn more on Windmill Microlending’s website here.
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