Protecting Yourself Financially When You Move Overseas

Nov 8, 2021 | Lifestyle | 0 comments

Traveling to new places may be a thrilling new chapter in one’s life, especially if you’re planning to move abroad for quite some time. However, for your travel dreams to come true, a solid financial plan is required.

Moving to an entirely different country can be a pricey endeavor, one that will leave you surprised and scratching. You also have to cope with new currencies, pricing, and general difference in the cost of living. To help you avoid some of the most typical financial blunders while relocating, take a look at these tips.

1.  Save up right now

It’s best to start saving immediately if you’re serious about living overseas. Before you travel overseas, it’s a good idea to save for seven to nine months in a bank or a low-risk savings account that’s easy to access. How much you’ll be needing is entirely dependent on how your lifestyle is. Your job, marital status, current currency rates, and the international network determine the amount of money you should set aside. There are many factors to it, and it’s best to include them in your decision-making process.

You want to save enough to be able to afford your rent or mortgage, security deposits and other charges, emergency medical expenditures, and repatriation costs, at the very least. It’s also essential to plan for your move and set aside money in case you need to visit your friends and family in your native country. There’s also a chance that you might have to suddenly move back as well.

2.  Don’t forget to factor in cost of living

Of course, before you decide to live overseas, you have to afford to live in that country. Many people travel for financial decisions, such as finding better work opportunities. But ultimately, you still need to have access to necessities such as food, shelter, water, and other things.

Include a comparison of the cost of living in your strategy. Some countries have a considerably higher cost of living, especially when compared to third-world countries. Some countries also have a different pricing spread, where utilities or resources cheaper in your country will be more expensive there.

This will also help when you’re looking to buy a condominium unit for sale or property overseas, as you would have an idea of how much it would cost you. When you factor in the cost of living, it’s always best to shoot a bit higher, especially if you haven’t been to that country before. This gives you leeway to work with and will allow you some space in case of emergencies.

3.  Manage your bank accounts and credit cards

It’s very tempting to go ahead and close your financial accounts like credit and banking accounts and then transfer everything to the country you’re going to. That’s not exactly the best way to go about it, however. Before you decide to close your bank accounts, study how it will impact or affect your credit standing. Closing credit cards with balances can potentially harm your credit, which will then make it difficult for you should you need to take out a loan in your home country.

However, it’s also essential to begin the search and application process for your overseas accounts before you even leave your country. You most likely won’t open bank accounts yet, but knowing your options will help a lot. Delays in creating a bank account might lead to financial hardships.

You can have problems obtaining housing, acquiring a credit card or a phone, or getting your paycheck if you don’t have a local account. That’s why it’s important to check what banks would need from you before you relocate so that you can gather paperwork. Knowing what sort of paperwork you’ll be needing while you’re still in your native country will save you from a lot of hassle.

4.  Don’t underestimate the feedback of locals

One of the most efficient methods to get information is to speak with a local. Talk about their ways to save money, the places that give the best deals, and the general prices of things. Migration support systems, specialists, and even your friend network can all be valuable information sources. Just don’t be scared to seek guidance from the locals, especially since the majority of people are eager to offer their expertise.

Another thing you can do is to talk to ex-pats or people who’ve also gone through a similar thing. They can share their experiences, and tips, and tricks, and what they would have different. All in all, people’s feedback and experiences can save you from many problems, so don’t be afraid to ask.

best,

– a contributed post

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