Let me tell you what personal experience travelling the world has taught me. No matter how much you plan, living in a foreign country is not always a bed of roses. There is no other aspect of life where this is as evident as your finances. No matter how much you think you save ahead of travelling, managing finances in a foreign country is a quite challenging task.
A lot of things can mess up your finances if you don’t look out. First there is the different bank policies across borders. What about the foreign exchange? Taxes and transaction fees have shocked some people into paralysis. I should know. My jaw once dropped to the floor as an overseas expat years ago.
Managing your finances in a foreign country requires a whole special set of knowledge and skills. Luckily, I shall be sharing them with you in this article. Just read on.
Open A Local Bank Account
Yes, I know you have your own multiple bank accounts in your home country. However, running your finances from your home country’s bank account is not a sustainable money strategy. As soon as you can, make sure you open a local bank account.
One of the advantages of opening a local bank account is that you don’t have to pay all those expensive international ATM fees. For any simple use of the ATM, your foreign ATM card incurs more charges. Both your bank and the local bank charge you.
If you are earning money in your new location, opening a local bank account is a no-brainer.
Set Up Online Banking
When opening a local bank account, make sure the local bank includes an option for online banking. After all, this is what you would have done in your home country, anyway. In a foreign where communicating in a strange tongue can be difficult, online banking can help you avoid visiting banks often.
Another good thing about online banking is that it makes it easy to quickly complete transactions. Tracking your transaction history is just as easy. You can get insights on your online banking transactions, all from the comfort of your apartment.
Understand And Fulfil Tax Requirements
Get as much details about your obligations in a foreign country. Even though it might seem complicated and intimidating, understand what is expected of you as a resident of the foreign country.
Depending on the foreign country you choose to reside in and the type of visa issued to you, you may or may not be required to file taxes. If not, then, you only have the taxes of you home country to deal with. If yes, you would need to file taxes both in your home country and the foreign country where you reside and work.
Track Your Expenses
If you are serious about managing your finances in a foreign country, you need a solid budget to guide your spending and investment habits. Beyond drawing a budget, you need to follow up by tracking your expenses. Keep track of your ATM withdrawals.
One of the things about using ATMs is that you may fool yourself into thinking you’re not spending much. The same goes for credit cards. Make sure you track these properly to avoid overspending. While we are still on credit cards, make sure you maintain your high credit score.
When you move to a foreign country, your credit history in your home country may not matter anymore. To keep your credit score in check, you may need to keep a credit card running in your home country, which you use once in a while to maintain the credit score.
A few small purchases on Amazon is all you need to keep things running. Just make sure you don’t miss your repayments.
Find A Money Remittance Platform With Low Fees
Getting money in and out of the foreign country you reside in is a very important part of managing your finances. You would most likely be sending money home or receiving money from home, anyway. If you don’t want your finances hurt by high international fees and the transfer fees of many international money remittance platforms, you need a reliable platform with low transfer fees.
At PassTo, we are passionate about solving money transfer issues. Our platform has been built to fit the highest security standards and keep your money safe. We help you make money transfers at close to nothing. Our clients’ happiness is our motivation and we will love to put a smile on your face.