Whether you are planning to live overseas for an extended period or currently do, you need to know about money. Depending on your situation, you may have different financial questions on your mind. For example, if you are moving to New Zealand and want to open a bank account, you may want this guide to foreign exchange for expats. If you are moving to London and want to save money on transportation costs, there’s an answer for that too.
No matter what you’re looking for, there are ways to secure greater financial stability while living in a foreign country. Read on to learn how to be smarter with your money while living abroad for the short or long term.
Dealing with Debt
One of the most persistent problems that people face when living in a new county is debt. The most common type of debt that people leave behind is student loans and credit cards. If you leave behind debts when you move, you will have to continue to pay them off from overseas. With this, you could experience hiked up rates of exchange.
If you miss payments while abroad, you run the risk damaging your credit score. The best approach if you can swing it is to pay off all outstanding debts before you move. Or, have a dependable payment plan in place before you go. Always stay up to date on what you owe.
Exchange rates are tricky and they trip up a lot of new expats. Exchange rates are a common occurrence when paying for something using a foreign bank. They could be through your old bank or one in your new country.
Another thing to be aware of when it comes to exchange rates is, they have a habit of changing. This is dependent on what is going on in the local or global economy. Some financial institutions have special offers with low exchange rates. For example, you may qualify for an international credit card with low exchange rates.
Paying Attention to Taxes and Other Assets
If you are living and working in a new country, make sure you don’t forget about paying taxes and watching your investments in your old one. For example, if you have a savings account, the interest made on that is taxable. If you own property in your old country, even if you aren’t using it, it is still taxable.
If you aren’t sure if you have taxable income in your country of origin, consider consulting an accountant.
Opening a New Bank Account
One of the most important things to do when you arrive in your new abode is to set up a bank account. Once you set up a home bank in your new county, you will better be able to deposit, spend, and manage the money you earn in your new region.
If you are only planning to live abroad for a few months, you may be able to manage while using your old bank. However, if you are planning to live abroad for a year or longer, make sure you find a dependable bank.
Moving abroad is exciting and packed full of possibilities and new experiences. Many new expats get swept away in the here and now of it all. But while you are enjoying this period in your life, don’t forget to plan for your financial future. While living abroad, you won’t be immune to money struggles. Everyone has them. But if you have the knowledge and tools to tackle them head-on, you won’t have to worry.