We have heard varied views about how Indians are able to save a few dollars after they settle in a decent job. 500 dollars sent to India every month translates into Rs. 17,000/- here. I want to know whether something like this actually workable. Because the more you improve your financial status in Canada, the more reasons you may find to spend in Canada!

My query is as below:

What is the breakup of cost of living in Canada in various stages of settlement:

First Phase: The Struggle period of odd jobs (how much you broadly spend on accommodation, food and commuting), and how much are you able to earn net (after taxes, if any).During this phase should one bring along his/her spouse and children?

Second Phase: When you are in a better job, and maybe rest of your family has joined in. Again, Cost of accommodation, food, car (can we expect?), and other incidentals. Again, in what range can one expect to earn?

Third Phase: When you have the job you think you deserve, and your spouse is also working. Things look fine. (Can one expect to buy a house at this stage?) So now you have the home loan installment, in addition to the regular expenses. What should be the comfortable level of income at this stage?

I request the senior desis to please advise if the above stages are correct.Kindly improve on the above and let the group know the \"Earnings vs Expenses\" breakup for each stage of settlement.

Thanks and best regards,

Vishal Grover

Vishal,
Your question is very relevant and well put forward. But it lacks one important criteria.

I have a friend who has a gross salary of about 75k and he feels a bit tight on that and wants his wife to start working as soon as possible. He is highly educated and has had atleast 15 wonderful years in middle management level and therefore has developed a style of living for which 75K is just enough, but not good enough.

I have another friend who feels that if he can continue with a job which gives him about 38k, he would be very comfortable and much better than the life he has led in India.

Not only in Canada, but I had a colleague in Hong kong who just wanted to go back because at a salary of about 100k Canadian, he was not able to lead that lavish life that he led in India in a small but his own - business

So the main criteria is : what has been your lifestyle before you came to Canada. That will decide how much income is enough. One can be happy to start his struggle in Canada from a one bedroom basement apartment while someone else might not want to take anything less than a 2 bedroom condo, though he might be ready to do odd jobs. In such a case, the first one will save enough to send money to India soon enough, while the other will be eating into his savings he brought to Canada.

So before anyone should try and answer your question, they should put forward the assumptions they are making or may be you should elaborate on the present situation and expectation of a would be immigrant. Universal replies are very very dangerous believe me - they can be immensely misleading.

-----------------------------------------------------------------
Chandresh

Advice is free – lessons I charge for!!

You can refer to this link regarding expenses

http://www.canadiandesi.com/read.php?TID=245&page=1#959

One room basement apartment can be shared between 2 persons and the rent would be around $350 ($700/2). Two rooms apartment shared between 4 persons could turn out around $250-300 or more depending on location and total rent of apartment.

Labour jobs can pay anywhere between $7-$10 depending on the work and companies. You would usually work 40 hours a week.

To bring your spouse and children or not during struggle period would depend on job market situation and adaptability also. Job market currently is dull because of the Christmas holidays. It would be too much of a struggle if you land at this time with your spouse and if neither one is able to find a job. Sometimes, it could also happen that husband is unable to find a job but wife is able to do so quickly. In some jobs, women are preferred.

Car would cost you around $500 per month including insurance and gas(petrol).

Well, the second and third phase would depend on your skills, demand of your profession in Canadian market, your network in Canada, "Canadian experience" and personal and job references in Canada, etc.

Car and a house is possible irrespective of the phases(a couple doing labour jobs) but savings might be closer to nil.

-----------------------------------------------------------------
Give free food http://www.thehungersite.com ||

I think sending 500$/month back home is quite ambitious. Even if you have a higher income, remember that almost 50% is gone by way of taxes (unless you have a business on the side and have more room to be creative with your accounts...especially, since the idea is not personal savings but sending money back home). If you buy a house there are a lot of factors that increase your expenses. From personal experience...expect to spend atleast $500+ over and above your mortgage. This would include property/school taxes, electricity/heating, summer/winter tools and equipment, repairs etc not to mention home improvement (which can drastically increase the monthly expenses). Home improvement is a booming business to be in and not without reason.
So even at phase 3 sending 500$/month home is not very realistic. I think your chances of doing that are better when you have your own sucessfull business. Ofcourse, if you are earning 200k but can make do with a smaller house and frugal spending habits, everything is possible.

Like Chandresh mentioned a lot depends on your standards of living. One shoe does not fit all.

About the second phase> what can one expect to earn? This is highly relative. Office admin jobs 10-15 $/hr. Depends n the kind of jobs. Same for phase three.

Also unlike back home, some people buy a 250K house after 10-15 yrs of doing phase 1 jobs.
I think one major criteria most newcomers are not aware about is the importance of CREDIT in north american life and CREDIT WORTHINESS. i.e: your credit standing in North America. The longer and more balanced your credit history is, the easier it is for you to get credit. Be it for a new house or a car. e.g: if you get a 200k job within a month of landing here and you have no savings/collateral and no credit history. You will probably find it difficult to get a car/house loan aproved. On the other hand a couple who have a 10 year credit history in good standing, and earn only 60K at labor jobs will find it easier to get a loan. So it is very important to maintain a good credit history. There are ways to access your credit rating from companies like equifax.
for more info read

https://www.econsumer.equifax.ca/ca/main?lang=en

and more importantly

https://www.econsumer.equifax.ca/ca/main?forward=/view/common/template.jsp&body=/view/education/credit_ed.jsp

-----------------------------------------------------------------
Recommended Services- Servicedomino.com
http://www.servicedomino.com

What are your minimum lifestyle requirements? That would determine how much you need to earn to break even. In Canada, eventhough housing is expensive, cost of food is very less.

50% tax is not true, although it makes a good story.

No, you do not need 10 year credit history, 1 or 2 years of good credit history will allow you to buy a house/car on loan. If you contact a mortgage broker, he/she may be able to get you a housing loan even if you had 0 credit history but a good job.

Yes, I do understand that lifestyle requirements are very relative. Well I would presently classify myself in \"Upper Middle Income Group\". Which means I reside in a fairly decent locality in Gurgaon, near Delhi(2 bedroom accommodation). Lifestyle includes commodities like car, various electrial & electronic appliances at home, public school education for children (2 kids)...and what else do I add?

Correct me if I am wrong, I understand that such a lifestyle is very basic in Canada.

Regards

Vishal Grover

Since Sujata is more knowledgable about the subject and seems to take umbrage at how others present their opinions about their experiences maybe she can also clarify after 75K of anual income how mouch federal and provincial taxes comes to(if you do not have a business). Last time I checked in Quebec it comes almost 48-50%. Are there ways to go around it? yes. There are various tax shelters. To send $500/month home? Doubt it!
Compared to people with short credit history ones with longer ones will find it easier to get loans! With or without Brokers. 10 years of credit history is not a requirement (if you read *carefully* I was making a comparision).

Also, I personally know a broker who can get you a house loan even if you are on unemployment! The idea however is to give prospective immigrants as much information as possible that is why people can make their own opinions after reading links like the equifax one i posted.

Sujata,
Its easy to poke holes into peoples opinions inorder to come across as superior. It is totally another thing to prove yourself so without having to try pulling other people down . Therein lies the difference between being smart and being wise. You are the only one who decides which road you want to go down. Also if i start poking holes about your posts(you do leave me enough opportunities to)...this forum would only degenerate into a mudslinging fest. So try to be civil and combat what you consider as inappropiate advice with a higher standard of advice withot hitting below the belt.
Anyway, I wish only the best for you.

-----------------------------------------------------------------
Recommended Services- Servicedomino.com
http://www.servicedomino.com