Adapting and thriving in a new country as a migrant largely rises and falls on one’s aptitude in financial management.
Western countries have superior living standards and world class infrastructure, high wages are often spent on tax and bills.
This article presents 7 Golden Rules of Money which can be applied to help immigrants survive and thrive in a new country.
1. Save Before Spending
It is important that you allot a portion of your earnings as savings before spending. Instead of saving after spending, you should spend after saving.
2. Spend less than you earn
Spending less than you make is a rather simple and obvious strategy. It is important that you manage your resources such that you don’t rely on borrowed money. Have a budget to help you plan and regulate expenses.
3. Be wary of loans
The thing about taking loans is that it has to be paid back at some point down the road. Loans for mortgage and school tuition could be seen as necessary but it is important you avoid accumulating debts. Before securing a loan carry out your due diligence in evaluating the interest rates and repayment terns.
4. Invest in yourself
Invest in yourself through education. Furthering your education could have tremendous benefits as it increases your earning potential. Also, getting a degree from the country you reside in could be a smart move for your future employment prospects.
Consider an MBA if you are looking to transit to mid-level management. Costly but worth the time and money.
5. Pay off credit cards every month
If you have to use a credit card to make payments, it is important that you treat is as you would a debit card. Always make purchases on things you can afford.
Pay off your credit card debts monthly in order to stay out of debt and build your credit score.
6. Never buy a brand-new car
This does not apply to you if you are extremely rich. Otherwise it would be prudent to avoid purchasing a brand new car as automobiles depreciate quickly and steeply. This makes cars a bad investment. This principle pretty much applies to expensive mobile phones.
Purchase a fairly new car that has been leased out for the first two years of it’s life. This can yield benefits knowing it was the previous owner that took the hit of the depreciation.
7. Never ever lend money to friends
This could be a tough rule to follow but lending money to friends is a bad idea as there is a good chance they will not pay back. Meaning you could lose money and possibly damage your friendship.
Also, lending money to a friend with bad Financial habits could make you an enabler.