Your Ultimate Money Guide to Living Overseas
More and more people are making the choice to move overseas for an adventure, a career change, or for retirement. While the prospect of starting over in a foreign country is exciting, it’s important to remember the practical side of things — your budget and expenses. To make the transition to a new home easier, consider the following practical tips for handling your finances when living overseas.
Budget Before You Go
Before you begin your journey, make sure to budget carefully. Take into consideration the costs associated with the move itself, such as transportation and accommodation, as well as costs for living in your new destination. Research the cost of living in the area you’re moving to and determine what your daily expenses will be. Get an idea of how much you will need in order to cover rent, food, utilities, a phone plan, and other key expenses so you can make sure to save enough before embarking on your journey.
Know the Currency Exchange Rate
When living in a foreign country, you will likely be dealing with a different currency. Make sure you’re familiar with your new country’s currency exchange rate and be sure to know what rate you’re getting when exchanging money. Additionally, you should research and compare banking institutions, as some banks offer better exchange rates than others. Knowing the currency exchange rate and finding the best place to exchange money can help you save money and navigate the financial landscape of your new home.
Open a Local Bank Account
Having a local bank account can be extremely helpful when getting settled overseas. It makes it easier to pay bills, receive payments, and shop online. To open a bank account, you will need to bring your passport, proof of address in the new country, and proof of income (salary slips, bank statements). You may also need to deposit a sum of money into the account. Many institutions offer accounts with no monthly fees and no minimum balance, so compare banks to find the best option for you.
Understand the Taxation System
If you’re living and working overseas, it’s important to understand the tax system of your new home. Research what taxes you will need to pay, such as local and federal taxes, and the forms you’ll need to submit. Also, make sure to familiarize yourself with any tax breaks, deductions, or incentives that may be available to you in your new country. They could help reduce your taxes due significantly.
Get Health Insurance
While living overseas, having health insurance is absolutely essential. Consider getting an international health insurance policy that provides comprehensive coverage in the country you’ll be residing in. International policies often provide a variety of extra benefits such as coverage for mental health and preventative care, and may even cover expenses related to trips back home. Before signing up for a policy, make sure it meets the necessary requirements in terms of coverage and price.
Secure Your Financial Records
When traveling overseas, make sure to stay on top of your financial records by keeping them safe and secure. Bring some form of identification when exchanging money as you may be asked to present it, as well as a copy of your bank statements. Additionally, be sure to keep all financial documents in a secure location, preferably locked in a safe, and keep your bank account details private.
Shop Around for Goods and Services
When living abroad, it’s important to compare prices when shopping for goods and services. Make sure you’re getting the best deal by shopping around, asking for recommendations, and using the internet to research different options. You could wind up saving a lot of money by finding the best bang for your buck.
When moving overseas, proper financial planning and being mindful of your expenses can go a long way. Be sure to budget before you go, get familiar with the currency exchange rates, look for banks with good exchange rates, open a local bank account, understand the taxation system, get health insurance, and keep your financial records safe. Shopping around for goods and services can also help you save money. Remember, with a little bit of preparation, you can make the most out of the experience and enjoy your new home.