For many newcomers to Canada, personal and financial goals may feel like they are moving in opposite directions. You want to say yes to everything—travel, dining out, live music, social events—but you’re also thinking about building an emergency fund, saving for retirement and getting out of debt. Add to that the cost of settling in, a limited credit history, and (in many cases) living off savings or a survival job, and it’s clear that trying to do it all at once can be risky.
This post is not about me, but I will say this: My family and I have chosen to focus on building a strong financial foundation before pursuing all the extra stuff. At the same time, we are all too aware that it is easy to fall into the trap of trying too hard and losing motivation. If the journey of building a better life becomes less fun, you may have a hard time remembering why you moved in the first place.
You can’t do it all at once – and that’s okay
The truth is, it’s hard to prioritize when you’re trying to settle in and feel like you belong. The urge to do and see it all is real. But when your early years in Canada are funded by personal savings (or worse, high-interest credit), impulse spending can quickly become dangerous.
Without a financial plan, it’s easy to overspend— and because newcomers often have no credit history, the only credit products available may have high interest rates and tight restrictions. One misstep and things can go bad quickly. Instead of trying to do everything, consider What really matters in the short term. What helps you feel grounded? What creates forward momentum? What is truly urgent and what can wait?
Focus on the basics
There is a difference between building a life and decorating a life. In the first few months, start with the essentials—those things that will give you stability, reduce stress, and set you up for long-term success.
Earning, Saving and Spending in Canada: A Newcomer’s Guide
Here are some financial goals worth achieving early on.
1. Build your credit history
If necessary, get a secured credit card and use it for manageable expenses, like phone bills or groceries. Pay off in full each month. This helps you build a strong credit profile, which will ultimately open the door to lower interest rates and better financial products.
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2. Set up an emergency fund
Even if you start small, building a financial cushion can give you breathing room. Try to set aside enough money to cover basic expenses for a month and add more over time.
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3. Understand the Canadian financial system
This includes understanding the differences between TFSAs, RRSPs, RESPs, etc. Many financial institutions, community organizations, and nonprofits offer resources for newcomers. Take advantage of them.
Compare the best TFSA rates in Canada
4. Avoid high-interest debt
Payday loans or quick cash offers should be avoided unless absolutely necessary. These products often come with extremely high interest rates that can lead to long-term financial stress. If you’re not sure, ask questions. Seek advice before borrowing.
5. Make small progress on long-term goals
Even a small, regular contribution to a child’s education fund or your own retirement savings can have a huge impact over time. The key is to get started.
But don’t put life on hold
Now comes the important part: Building a financial foundation doesn’t mean you have to live a boring life. You don’t just move here to pay bills and build spreadsheets; you move here for more than just paying bills and building spreadsheets. You moved here for something more. If you take away everything that is fun or fulfilling in the name of discipline, you may find yourself questioning whether the move is worth it.
What helps me is learning to make room for both – a night out every now and then, a concert ticket, a vacation with my family. Nothing luxurious, just a moment to remind us that we are here to live, not just survive.
Happiness doesn’t have to be expensive if you plan for it, it just needs to be intentional.
One sentence changed my view
Recently, I saw a quote on Instagram that still stands out to me:
“Your life changes when you realize you’re not accumulating wealth for things you can afford. You’re accumulating wealth for problems you won’t encounter. Emergencies that won’t destroy you. Opportunities you can seize. Stress you won’t feel. Wealth is peace, not possessions.”
