{"id":30867,"date":"2013-01-17T23:32:34","date_gmt":"2013-01-17T23:32:34","guid":{"rendered":"http:\/\/www.ou.org\/life\/?p=30867"},"modified":"2017-04-20T04:18:43","modified_gmt":"2017-04-20T09:18:43","slug":"how-make-it-financially-israel-baruch-labinsky","status":"publish","type":"post","link":"https:\/\/www.ou.org\/life\/israel\/how-make-it-financially-israel-baruch-labinsky\/","title":{"rendered":"Aliyah<\/em>‘s Financial Realities"},"content":{"rendered":"

Know the Reality<\/strong><\/span><\/h3>\n

People decide to come on Aliyah<\/i> for a variety of reasons, including religious beliefs, familial or cultural ties, and a desire to be part of the gathering of the exiles.<\/p>\n

\"Israeli<\/p>\n

Whatever their motivating factor, the number one question that people ask themselves prior to making the decision is, \u201cCan I afford to come on Aliyah<\/i>?\u201d\u00a0 Other variations of this question include, \u201cCan I make it in Israel financially without compromising too much on my standard of living?\u201d \u201cWe\u2019re living in Israel but I don\u2019t understand how Israelis make ends meet.\u201d \u201cHow do I retire in Israel without compromising my financial stability?\u201d\u00a0 Or, \u201cWe want to make Aliyah<\/i> but have absolutely no idea where to start and how it will affect our family\u201d.<\/p>\n

Depending on their stage in life, some people\u2019s preoccupation with these issues relates to their children and grandchildren.\u00a0 Having raised their families in familiar surroundings, their offspring relocate to Israel, and the parents\/grandparents often feel a tremendous lack of ability to guide and help in very unfamiliar situations.<\/p>\n

I\u2019ve been hearing these questions for years in my financial planning seminars in Israel and North America, and they were the motivation for my recently published book, A Financial Guide to Aliyah and Life in Israel<\/i>.\u00a0 There are many people around the world – and even in Israel – who are thinking about making Aliyah<\/i>, but don\u2019t have the tools to evaluate whether such a big move is feasible, or how to do it.\u00a0 All these questions (and many more) are magnified by the lack of a comprehensive financial guide to help people through the Aliyah<\/i> process – from planning, to arrival and successful integration within Israeli society.<\/p>\n

Aliyah<\/i> is a dream that must be grounded in reality. \u00a0Many Olim<\/i>\u00a0(people who make Aliyah<\/em>)\u00a0<\/em>fail to plan correctly and return to their country of origin or spend years frustrated by their economic challenges in the Jewish homeland.\u00a0 Financial competence is an absolute necessity – not a luxury – when making Aliyah <\/i>and living in Israel.\u00a0 Potential Olim<\/i> should evaluate the effects that Aliyah<\/i> will have \u2013 not only today – but also 20, 30 or 50 years down the road.\u00a0 Today\u2019s Jewish family needs to learn effective money-management skills \u00a0for an increasingly complex international financial world \u2013 something all the more complicated for those considering settling in a country that is fundamentally different than their home country.<\/p>\n

While many Olim<\/i> can use English in Israel to get by with the day-to-day tasks of living – especially in communities where there are large numbers of English speakers – this should not lead you to conclude that the financial system in Israel is similar to that of other Western countries. \u00a0It is not.<\/p>\n

Forget everything you know about managing your finances in your country of origin.\u00a0 Things run differently in Israel, for better or for worse.\u00a0 Israel\u2019s unique financial system has developed from its unique international standing of being surrounded by enemies and unable to build financial relationships easily with its neighbors.\u00a0\u00a0 By necessity, it has created its own unique standards, a convergence of Western and Middle Eastern cultures – with a moat-like independence. It\u2019s no wonder that so many people “can\u2019t figure out the system.”<\/p>\n

While I’m not advocating competing with your neighbor, the \u201cJones\u201d or \u201cCohens,” I find that because finances can be such a taboo subject, people often have no perspective as to where they are in the financial health continuum.\u00a0 This lack of information blinds them from making the right decisions.\u00a0 They then look back years later, wondering why nobody shared with them the keys to successful financial planning when making Aliyah<\/i>.\u00a0\u00a0 I have found that providing this perspective can be one of the most crucial elements in successfully planning and implementing your Aliyah<\/i>.<\/p>\n

Shalom Bayit (Peace in the Home)<\/b><\/span><\/h3>\n

Whatever financial issues one is struggling with will be exacerbated after the move to Israel. Without the flood of additional challenges brought on by Aliyah<\/i>, financial stress is already the number one cause of friction between spouses in Western society.\u00a0 In my own experience, I have seen the terrible shalom bayit<\/i> issues that arise from a lack of financial acumen and even more importantly, a lack of financial direction.\u00a0 Financial stress not only breaks apart the family unit, the core fabric of society, but it causes us to avoid making decisions, or to \u201cfreeze up.\u201d \u00a0Financial inactivity does more than just prevent us from getting ahead; it too often also causes us to fall backwards into a bigger and bigger hole, thus perpetuating a cycle of financial instability.\u00a0 When people don\u2019t know what to do, they often procrastinate, which has severe negative ramifications.\u00a0 Doing nothing (or putting things on hold) might seem like the easy way out \u2013 but in the end can ruin one\u2019s life.<\/p>\n

Plan Ahead<\/strong><\/span><\/h3>\n

Money is important, but it is only a means towards fulfilling our potential in this world. The less time that we need to devote to it, the more time we have available for family, personal growth and fulfilling our dreams and our potential.\u00a0\u00a0 It is therefore vital to take control of one\u2019s finances before making Aliyah<\/i>, whenever possible.\u00a0 <\/i>Creating a solid foundation for financial health allows you to spend the least amount of time necessary worrying about money, free to pursue life\u2019s priorities.<\/p>\n

Financial planning of any sort is not an exact science but rather a process of calculating odds, and there are many variables and unknowns to consider prior to Aliyah:<\/i><\/p>\n