Come what may, expenses, income and how to survive in a new place are some factors which cannot be ignored if you are planning to go anywhere in the world. You cannot manage without thinking about your initial expenses.
Before you move
You need to find out what the initial expenses are if you are planning to settle in Canada and are different for different cities in Canada. Whereas there are some items and services which are similar across the whole Canada.
The cost of living is different for different people, from being a student to a professional to a businessman to a senior citizen. But some basic expenses are common for everyone.
Proof of funds
First of all you need to prove to the Canadian government that you have sufficient funds for your family and yourself, hence the bank balance should be maintained according to the average bank balance.
Cost of living may be different
The life you will be living in Canada will be different from your home country.
There is a chance that you will have to do a different job than the job you were meant to do due to some unavoidable and unforeseen circumstances. Hence it will have an effect on your financial status.
Earning a higher income in your home country and earning a higher income in Canada is very different because the standard of living won’t be similar in both the countries. Talking about particularly Canada, the cost of living will most probably be higher than you are used to.
One half of your take home salary will go in the household expenses.
These expenses include the cost of your :
· Heating and other utilities
· Health insurance
Cost of home
Housing and other utilities put a big hole inside the pockets of most of the Canadians, 35-50% is the estimate. This includes the cost of renting your home or paying your mortgage (a mortgage is long term loan). It also includes the often-high cost of heating your home and paying for electricity, telephone service and water.
Renting an apartment is preferred by most of the immigrants than buying an apartment. Rent can vary from minimum $350 for a room to $2000 for a larger apartment or large house. You can take assistance from an immigrant-serving organization where you plan to settle according to your pocket.
Buying a house is the second option after renting because of the formalities involved in the process. Banks and other lending institutions give mortgage loans. They decide whether you have enough income, enough assets(things you own) and a good credit rating. Most banks will ask you to pay 10% down payment on the front end of the cost of the house from your own money. In addition to your mortgage payments, you will have to pay for property tax and household insurance.
Usually monthly bills vary from 50-70CAD (Canadian Dollars)
Some provincial and territorial health programs may not cover some newcomers for the first three months they are in Canada.
Check with the ministry of health in your province or territory as soon as you arrive in Canada to see if you will need to buy extra health insurance.
The cost of basic expense will depend on the size of your family. Food is the most basic expense after shelter. The cost of eating in restaurants or spending on specialty items will be double of what you spend at home, so spend wisely. Clothing expense will take approximately 10% of you take-home salary. Second-hand shops sell very low cost good quality clothes and can be preferred most of the time, designer stores can be avoided if you are struggling with other expenses which are mentioned above in the article.
Alcohol and Cigarettes
Some people treat alcohol and cigarettes as basic expenses so let me tell you that it will put a big whole in your pocket , plan wisely, as alcohol and cigarettes are heavily taxed making them costly.
There are 2 options for transportation, public transportation or your own car. If you are planning for a car, there are two options, one is buying a car and second is leasing(rent) it. When you own a car, you will have to keep in mind the overall regular expenses which includes, maintenance, gas, monthly loan payments, registration and insurance. Leasing a car will have all these expenses, except the car won’t be yours.
Best option is to use public transportation, or walk if your place of work is on a walking distance.
It will include some very important expenses, which includes medical expenses (prescription medicines not covered in insurance), long distance calls to friends and family in your home country.