Saving Abroad - 5 Tips for Every Expat

If you have just moved abroad, you may suddenly see an increase in your income. To make the most out of the new affluence, recent expats should set up offshore savings accounts for their newfound wealth. Among other savings tips, expats should start by making a budget and sticking to it. With careful cash management and wise savings plans, expats can see their offshore savings grow exponentially.

Develop a Budget

There are many nations around the world that have a lower cost of living. If you find yourself in a nation like Taiwan, Cambodia or Indonesia, the cost of living will be so low that you may find it unnecessary to develop a budget. No matter how low the cost of living is, you should still plan out your monthly expenses. By creating a budget, you can ensure that all of your hard-earned money does not go to waste. Figure out your monthly expenses and calculate a spending budget. Stick to this budget and save any amount of money that is leftover each month.

Make Adjustments

Over time, you may find that your budget is too large or it just is not big enough. This is perfectly normal for someone in a new country. As you learn more about the region, you will be able to adjust your budget so you can live within your means and still send income home.

If you find yourself running out of funds at the end of the month, consider increasing your budget. Nothing is worse than ending up with no money at the end of the month. If the lack of funds is due to poor money management, you can start tracking your expenses in a notebook to see where the money is going.

Create a Savings Account

It seems logical, but so many people forget this step. You can create an offshore savings account to start building your nest egg. Try starting one in your current country of residence. While you are still figuring out budget issues, you will be able to easily access your funds. An offshore account is also beneficial because it will normally carry lower tax penalties than an account in the United Kingdom.

Save Six Months of Living Expenses

Most financial advisors will recommend that you put away six months of living expenses in a savings account. Wherever you place this money, it has to be easy to access in case of an emergency. If you suddenly have a medical emergency, you will need this money to be easily reached and not locked up in stocks or bonds.

Buy Your Ticket

At some point, everyone will return to the United Kingdom to live or visit. Purchase this ticket at least three months in advance. As your departure date approaches, the ticket will become more expensive with each passing day. By buying it in advance, you can save some money and keep your nest egg intact.

Expats should always start their trip abroad with a budget and a savings account. As time goes on, they will be able to adjust their budget appropriately and save more of their income. Plan carefully and you can develop a nest egg, retirement savings or just additional money for travelling.
Categories : Investing

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