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The Global Grind: Financial Advice for Ghanaian Expatriate Workers in Canada

The Global Grind: Financial Advice for Ghanaian Expatriate Workers in Canada

20 Oct 2023


Did you know that people who suffer from high financial stress are twice as likely to report poor overall health? As an expat, you have more chances of becoming financially stressed due to the responsibility of initiating a money transfer to Ghana each month for your family.

While it is that shifting to Canada from Ghana is an exhilarating leap into new experiences, remember that it is not just about physical relocation. Finances will overwhelm you as soon as you step into the new country. Don’t fret because you are not alone as 100,000 Ghanaians living in Canada have gone through the same process.

Keep reading this blog to acquire the skill of strategic financial planning in the dynamic landscape of Canada.

Finding Your Financial Footing in the Foreign Land

Once you step foot on Canadian soil, it is important to secure your financial basis to reduce potential stress that can affect your productivity at work. Begin by opening a bank account with a reputable organization such as TD Bank, RBC, or Scotiabank. This will help you understand the financial opportunities in Canada a lot better. However, keep in mind that you will need your identification documents and proof of address.

Understanding the Canadian Dollar

The Canadian dollar is the dominant currency in Canada. It is important to stay up to date on exchange rates if you have to send money to Ghana regularly. Stay vigilant at all times because exchange rates are highly volatile. Your ignorance might make you lose the chance of sending remittance at a high exchange rate.

Budgeting with a Ghanaian Flair

Every region of Canada has its way of life and unique expenses. Stay true to your roots and keep your expenses only according to your specific needs. Whether you live in Toronto or Calgary, budget wisely on necessities and create more mindful purchasing habits. Use these tips for extra care.

Organize Your Invoices and Receipts

Organize your bills and receipts in case you need to refer back to one to dispute it. This will be essentially helpful for tax considerations and returns.

Documents can be physically filed using hanging files or expandable folders. If you choose physical filing, sort your documents by account or by month, whichever works best for you. If you get most of your bills and receipts by email, you might want to file everything electronically.

First Save, then Spend

Consider saving as a fixed cost and budget for it accordingly. According to billionaire Warren Buffett, it's imperative to prioritize your investments and avoid temptation. He also suggests that one should use automated deposits for effective savings. 

Include a Category for Contingencies

An expense may occasionally go outside of one of your budget's categories. This is where having a backup plan is useful. The catch is to make sure you aren't using it as a justification for excessive spending in any of your other areas. If you discover that you frequently go over budget for food, shopping, or any other expense, think about changing your budget rather than putting the extra money towards a contingency.

Take a Day Off from Spending

Set aside one day every week to only spend money on things that are required. This is a simple approach to guarantee that your weekly spending stays below your spending limit.

Consider going without spending for an entire month if you're finding it difficult to save money. The goal is to spend no money for an entire month except for the absolute needs and put all extra money into savings.

Be Mindful of Needs Versus Wants

"Needs" are defined as anything essential for your basic physical, emotional, and financial well-being. Some basic examples include food, rent, and debt repayment. These should be included in your budget at all times and there is no need to cut back on these items. You can also include a money transfer to Ghana in your needs to ensure the financial stability of your family back home.

Consider the 50/20/30 rule, which states that you should dedicate around 50% of your income to necessities, 20% to savings or debt, and 30% to non-essential products that will improve your lifestyle.

Explore Some Investment Options

Take your Ghanaian wisdom to the next level and learn how to multiply your earnings. Canada offers a diverse range of investment opportunities that include stocks, bonds, and real estate. Leverage your innate financial acumen and consult experts if needed to create unlimited wealth.

Learn About Taxes

Usually, according to the PAYE approach, your taxes are deducted directly from your income. However, non-residents who receive income from Canada from sources besides work or business are typically subject to a withholding tax of 25% of their gross income. Rent, royalties, dividends, income from trusts, and pensions are a few types of income that are subject to withholding tax.

Retirement Planning

As an expat, it is important to consider your retirement goals and start planning early for them. You can invest in Canadian business's pension plans to get good returns. This will allow you to enjoy your retirement years without worrying about money.

ACE Money Transfer Bridging Distances

Even beyond borders, Ghana continues to be near the help of ACE Money Transfer. It allows you to seamlessly send money to Ghana from Canada. ACE Money Transfer has been an industry leader for more than two decades. It offers market-competitive exchange rates, affordable fees, swift and secure transactions, and 24/7 customer service. ACE makes sure your financial relationships are impenetrable, whether you're conducting cross-border business transactions or sending remittances to your loved ones in Ghana.

The journey from Ghana to Canada is not just a geographical switch but a financial transformation that will add to your professional success. By following these tips, your financial choices can shape your prosperity in the new country. ACE Money Transfer can be your solid partner in facilitating financial connections. Sign up on ACE today to send money to Ghana from Canada for free.

FAQs

Q: Are there any Ghanaian communities in Canada that can help expats with their financial situation?

 Indeed, several Ghanaian community associations in Canada provide networking opportunities and help for financial guidance and assistance to fellow expatriates.

Q: Can I use the Ghana-Canada tax treaty to optimize my tax obligations?

Yes, the Ghana-Canada tax treaty prevents double taxation. It ensures fair treatment of your income in both countries.

Q: How can I stay connected with my Ghanaian relatives for better mental health and support?

You can incorporate daily calls and text messages to stay in touch with your Ghanaian relatives. You can also send them remittances using ACE to showcase your dedication and love.  

Q: Are there any specific events and educational programs for Ghanaians in Canada?

Yes, the Ghana High Commission in Canada regularly hosts events to meet with fellow Ghanaians. Sometimes, they also conduct workshops and discussions to enhance your expat life.

Q: How much time does ACE take to transfer funds to Ghana from Canada?

 ACE Money Transfer will deliver your funds to your relatives in Ghana within one working day.

Resource:
https://ottawa.mfa.gov.gh/diasporan-initiatives.aspx


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