5 Financial Tips If you’re Moving Abroad

Tuesday, June 1, 2021

There are many reasons why you can decide to move abroad. It can be a job promotion, a retirement plan, or a traveling experience. For any reason you choose to become an expatriate, you need to have your financial affairs in order.

1. Finances

Most people are excited about moving abroad to experience different and new cultures. They get all arrangements squared out but often forget the financial aspect of planning. For instance, researching inheritance laws in other countries may not be something on your to-do list. Below are a few financial tips you should know if you are moving abroad.

2. Exchange Rates

You should be aware of the exchange rates in the country you plan to move into. The currency rates may increase or decrease your money. It would be best to account for the change as you form your budgets on utilities in the new country. Sometimes you can over budget or under budget if you are not aware of how the foreign exchange rates affect your funds.

Use a trusted money transfer service rather than dealing with banks yourself. Money transfer service make sure you get the best deals in the exchange rates. Always consider security, transfer speed, and user experience before settling on a transfer service. Use the best service that serves your needs.

3. Online Finance

Online financing helps you handle your money at minimum costs anywhere in the world. When you decide to become an expatriate, you will not stress moving funds from one bank to another. You access your accounts, pay bills and buy essentials in the new location through online transactions.

Online finance also makes the following possible:

  • Make international business payments. You can conduct your business from anywhere in the world without incurring extra charges.
  • Send money to your friends and family
  • Transfer funds to yourself from anywhere in the world

However, you cannot close your bank accounts immediately after or before moving. Ensure you have set up all your electronic bank statements and online banking network of the new location. After the set-up is successful and functional, you can close your other bank accounts. Some people make the mistake of ignoring official procedures with online banking.

4. Leave No Debt

Make sure you leave no debt in your name when you move abroad. Debt follows you anywhere. Even renouncing US citizenship doesn’t excuse your debt. Becoming an expatriate in debt becomes more expensive and complicated to pay back. You have to factor in the tax regulation of the new and former country.

Oversee creditors can take action to collect. Ignoring payment demands invites terrible consequences. To avoid such trouble, set up a recurring payment plan that will cut off a percentage from your accounts. You can also hire a financial advisor to help you manage your financial portfolio.

5. Secure Health Insurance

It is crucial to deal with your health insurance before moving abroad. Expatriate medical insurance depends on your medical history, country of origin and coverage and age. Find out how your account interacts with the policymakers to get the premium package.

Get a plan that offers worldwide coverage if you plan to travel a lot. Find the best deals by researching policy prices and countries with insurance limitations. Most health insurances don’t extend to high-risk regions such as active war zones or politically unstable areas.

6. Close Credit Card Accounts

Allow yourself enough time before moving abroad to close your credit card accounts. Closing all your accounts at once could damage your credit score, which is difficult to recover. Unless it is an emergency relocation, close your accounts over time.

Additionally, it would be best to give your credit card issuer a heads up before closing an account. Closing an account without warning raises a red flag which could spoil your credit score or have your account suspended. Leave one or two credit card accounts open even though you never plan on coming back. You may decide you want to return or visit and the accounts will be helpful.

Successful Relocation

Moving abroad is a tasking but exciting venture. Make sure you make the transition as easy as possible for you and your family. Apart from your finances, take care of all other essential aspects you need to survive in a new environment.