Moving to Canada can bring unexpected costs, like medical bills, car repairs, or job loss. That’s why it’s a good idea to have an emergency fund, or money saved in case something goes wrong.
Continue reading to learn more about how you can start saving as a newcomer in Canada!
1. Start Small
You don’t need to save a lot right away. Even $10 or $20 a week is a good start. Try to save enough to cover 3–6 months of basic living costs like rent, groceries, and transit. Don’t worry if this feels too hard; saving even $500 can make a big difference during an emergency.
2. Open a Savings Account
Keep your emergency fund in a savings account. Try not to keep it in the same account you use for everyday spending. This makes it easier to avoid using the money by accident. You can also ask your bank to set up automatic transfers, so you save a little each time you get paid. Many Canadian banks have special accounts for newcomers with no monthly fees and free savings options. Be sure to ask what is available for you.
3. Create a Monthly Budget
Write down your monthly income and expenses, or consider using an online budget planning tool to see how much you can save. Look for small ways to cut costs. For example, cooking at home, limiting takeout, or using public transportation. This can help you save more for your emergency fund.
4. Access Community Programs
Newcomers may also be able to save money by using free or low-cost community programs. Some cities offer food banks, newcomer discounts, or support with housing and childcare. These programs can help reduce your monthly spending.
5. Use Only for Real Emergencies
Use your emergency fund only for serious and unexpected needs, like a job loss, urgent dental care, or helping your family in an emergency. Try not to spend it on things like gifts, eating out, or travel.
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