Top Financial Tips for Expats Who Want to Live Abroad
This week’s post is from guest blogger Vanessa Wright. She is a seasoned blogger who writes about investing and loans. She often talks about personal finance, investments and self development. Vanessa is also a musician and a traveler.
Are you planning to live in a foreign country? If yes, you’re one of the many U.S. citizens who want to leave their native country for greener pastures or lower costs of living abroad. They learn from many expats that living in some countries can be a great way to save and make money.
For example, in countries like China and Brazil, expats can find advantages when getting house loans (check out Siloans.com to learn more) and venturing into investment opportunities.
However, the financial advantages aside, there can also be financial downsides of living in a foreign country. That’s why you should have a solid financial plan if you want to leave the U.S. and live abroad. Here are some tips to keep in mind for that matter.
Save Money Now
It’s advisable that you save money now if you really want to live abroad. Before moving to another country, you must have saved at least 7 to 9 months’ worth of living expenses. Of course, you need to assess your lifestyle to ensure that the amount is sufficient for you.
Besides your lifestyle, you must also take into account your income, current exchange rate, or whether you have family or friends there that might help you financially in case of financial emergencies.
You should also consider the expenses of returning to your native own country aside from the costs of moving abroad. It’s because most of the time this has happened to expats who have lived abroad for a period of time.
Choose a Bank Before Moving
Before moving, do your research about banks in the country where you want to move. It’s crucial especially if that country’s banking system isn’t yet well developed.
Find out whether the bank issues mainstream credit cards like MasterCard or Visa. It’s also important to know if it uses a payment clearance network or shared ATM system like Cirrus. When the bank has these characteristics, you can be at ease that it’s trusted and reliable.
Moreover, check whether your deposits on the bank are guaranteed. It’s a sign of stability if the government of your host country guarantees bank deposits. If, on the other hand, the guarantor is a private entity, you should check the organization’s reputation and credibility.
Then, know about the bank’s interest rates and fees. It’s also important to ask if it provides personal loans or mortgages, especially if you’re thinking about purchasing a house in the new country where you want to live as an expat.
And, of course, you need to see to it that the bank in your host country allows a U.S. citizen to open a bank account. You can find countries today that are strict when it comes to letting Americans open bank accounts. While others simply haven’t complied with the Foreign Account Tax Compliance Act, which requires banks to report bank accounts owned by expats to the Internal Revenue Service.
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