As new migrants embark on their new life in a new country, navigating through the complexities of financial planning can often pose a considerable challenge. 

Christchurch-based financial advisor Reshma Shetty has some tips for migrants, including defining short and long-term financial goals and breaking them into actionable steps.

Migrants often find it challenging to set aside funds while juggling various life goals, such as purchasing a house, establishing a business, or raising a family. 

This is where a financial advisor can help. Reshma Shetty has been helping migrants manage their finances and facilitate a prosperous life.

Born and raised in Gujarat, Shetty completed her graduation at Mumbai SNDT. 

In 2007, she moved to Queenstown in New Zealand. Her professional life here began at National Bank, first in Queenstown and later in Christchurch.

After spending nearly a decade working at National Bank and ANZ Bank, Shetty says she chose to become a qualified financial advisor to not only leverage her banking expertise, but also allow her to help her clients in a more meaningful way.

Shetty has also owned several businesses, and her involvement in the community goes far beyond her business endeavours. She believes in giving back and making a positive impact on the lives of others through various community outreach programs.

“Witnessing individuals I guided in their early careers now thriving with prosperous businesses or successful investments is the ultimate reward. Even a simple phone call or message expressing gratitude for the advice given, and the achievement of their desired goals, brings immense satisfaction to me,” Shetty says.

On challenges faced by new Indian migrants, Shetty shares, “The Indian community in New Zealand often faces financial concerns due to a lack of information or making incorrect decisions, such as overcommitting to unnecessary short-term loans, credit cards, or car loans, leading to excessive spending.”

She advises young migrants to “take control of your finances by creating a budget, diversifying income streams, learn from mistakes, and know that it is never too late to achieve financial success”.

Shetty has a set of crucial recommendations:

Assess your current financial status

Begin by evaluating your income, expenses, debt, savings, and investments. Make a comprehensive list of all your financial obligations, including loans, credit card balances, and monthly bills. This assessment will provide you with a clear picture of your financial health and help identify areas that require attention.

Create a budget

Develop a budget to take control of your money. Track your expenses for a month, categorise them into essential and discretionary, and analyse your spending patterns. Set realistic spending limits for each category, ensuring your income covers your expenses. Regularly review and adjust your budget to stay on track.

Reduce and manage debt

Develop a strategy to tackle your debts effectively. Prioritise high-interest debts and consider methods like paying off your highest-paying debts or lower-rated debts.

Build an emergency fund

Save for unforeseen expenses by building an emergency fund. Aim to have at least three to six months' worth of living expenses set aside. 

Set financial goals

Define both short-term and long-term financial goals. They could include paying off debt, saving for a down payment, or planning for retirement. 

Seek professional advice

Consider consulting with a financial advisor who can provide personalised guidance based on your specific circumstances. They can help you analyse your financial situation, create a customised plan, and offer expertise in areas like investments, tax planning, and retirement savings. 

Shetty says, “Embarking on a journey towards financial stability requires both time and effort. Be patient with yourself as you navigate this path and remain steadfast in your commitment to effect positive changes. 

“By implementing these invaluable tips, you will find yourself on the road to achieving not only financial stability but also your most cherished financial goals.”

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The above tips are not financial advice. Please consult a qualified financial adviser for personal advice.