Financial planning for immigrants in Aussie

We arrived in Sydney on the 4th of December 2018, ready to start our new life in Australia! It’s been an amazing journey so far.

The amount of research, paperwork, and admin required in moving here is exhausting. There are so many steps you need to follow and it seems like you are constantly making decisions in the build-up to the move. But, when you finally arrive you breathe a sigh of relief and realize that it is all worth it.

Unfortunately, once you start to settle in the research, paperwork, admin and decision making starts all over again! Only this time everything around you is unfamiliar and you need a GPS just to do the grocery shopping!

A key objective for my wife and me in settling into life in Australia, and having to start over with almost everything, was to limit the number of errors we make. I’m a firm believer that to be “successful” in life/personal finance/sport it’s about making smart, “correct” decisions consistently, and equally important, limiting poor decisions. When we fail in an area it’s not typically the result of one huge mistake, but rather a series of small errors that compound over time and lead to “failure”. Like getting into debt. It’s seldom that people incur massive, unaffordable debt overnight, but rather a series of poor decisions to take on more and more debt until it’s too much to manage.

In the investment book Winning the Loser’s Game, Charles Ellis compares investing to tennis. The best players in the world hit enough good shots until their opponent finally makes a mistake (the winner’s game). Amateur tennis players tend to lose points because they make basic mistakes and unforced errors (the loser’s game). If we cut down on unforced errors and reduce mistakes in our lives we can improve the outcomes.

When arriving in a new country you need to limit your errors. First, because it’s really expensive living here and you want to get it “right” the first time, and second because some of the decisions you will make are incredibly important. If you have kids picking a school is probably your top priority. Even if you don’t have employment lined up yet, they will need to go to school and you want to ensure it’s a school the kids will fit into quickly with as few teary days and as little stress as possible. There is little room for error.

Then you need to choose a new home. Which means you need to decide on an electricity and gas provider. What internet company do you use and what package do you take? Should you buy a lawnmower or get a monthly service-which is really expensive. Either way, you need to pick from about 10 brands of mowers and 10 different mowing companies! Then there is the small issue of filling up with petrol, checking oil and tyres! The learning curve is really steep. You don’t have any personal experiences to fall back on. You have to start everything in life from scratch. At the same time.

I was a financial adviser in South Africa for over 15-years, and to provide advice in Australia I had to study additional courses to be qualified before we arrived. So from a personal finance perspective, my background has given me a significant advantage over most migrants-from choosing a bank, to how best to structure a home loan, deciding on an insurance company to what medical insurance provider you choose, and whether to add on a silver gold or platinum “extra’s” package? As soon as you start work you need to have decided on which Super to use-assuming there isn’t a default option which may not be an attractive option. What investment strategy will you follow? Should you have your insurance inside or outside your Super? What impact will all these choices have on your tax affairs? Is your Will still valid?

The decisions you need to make are important and will need to be made almost immediately and continue for some time in the future. To thrive you will need to limit your mistakes along the way.

To help you manage your financial life, you can partner with a financial adviser. They can assist in guiding you through the important financial decisions that you will face, and provide peace of mind that your financial affairs are under control and on track.