10 Money Saving and Offshore Investing Tips for Expats

Some may say that the housing market in the UK is recovering, some may suggest that the pound is recovering against the euro, others may say that America is getting its economy back on track and that we’ll soon all be out of the global recession and it’ll have been a momentary unpleasant fiscal glitch.

We on the other hand live in the real world with people like you!  We’re well aware of the reality by watching what’s going on around us in our circle of friends, colleagues, associates and neighbours.  We see people still losing jobs, struggling to make debt repayments, finding it hard to save any money towards an even rainier day.  We – like you – also know that expatriates are hardly immune to what Brits seem to feel is their exclusive recession!

In many locations in the world the financial knock-on from the banking disasters in the US and the UK are a daily reality for locals and expats.  Which is why in this article we’re going to offer up 10 simple money saving and offshore investing tips and tricks for expats.  Whether you need to save money each week to make sure you can pay your monthly bills, or you have some money saved that you want to secure offshore…read on for inspiration.

5 Money Saving Tips

1)  Do It Yourself

From making your own packed lunch and a flask of coffee to take to work to cleaning your own windows, from scrubbing your own floors to washing your own car – do it yourself should be the new shame-free reality for you and your family if you want to save money.  If you take a look at what unnecessary services and goods you pay out for each day and each week, you will soon shave hundreds of pounds/euros/dollars a year off your annual spend.

2)  Compare the Market!

Expatriates tend to make do – they make do with whichever energy supplier, satellite/TV supplier, mobile phone provider and insurer they come across when they first move abroad.  After all, there is so much to get organised and set up when you arrive abroad, so it is easier to take whatever comes your way, sign up with whoever makes it easiest for you and sit back simply satisfied that you have managed to set up a whole new life abroad!

However, and I speak from experience here I really do, the first suppliers and solutions providers you find are barely ever the cheapest!  So, you need to begin comparing the market, asking around, doing some homework and finding out how you can get cheaper everything – cheaper mobile phone tariffs, cheaper energy suppliers, cheaper home and car insurance, even cheaper credit card rates and fees.  You could literally save yourself hundreds or even thousands a year.

3)  Socialising Frugally

Learning to socialise frugally can be very hard for some expatriates – it just depends where you live really!  In certain popular expat destinations the party lifestyle is what attracts expats in the first place.  However, for the rest of us in the real world (!) we can socialise from home, we can also go out and socialise pretty much for free (or cheaply anyway) when we join a club or an evening class.  Other alternatives include having picnics with friends at beauty spots and sites of interest in your new nation – that way you socialise and sightsee at the same time.  Be creative in your thinking…

4)  Commute Cheaply

From getting to and from work to flying back and forth to the UK, learn to commute cheaply.  Locally does it make more sense for you to ride a bike to work and avoid everything from petrol costs to parking fees.  Or what about taking public transport or sharing lifts with others who live and work near you?  When it comes to flying back and forth to your original home nation to catch up with family, friends and life, start adding up air miles and then you can accrue free flights.  Also, think about booking well in advance so that you can make the most of cheaper fares.

5)  Shop Savvy

Instead of buying goods from the supermarket that you recognise from home, learn to shop like the locals.  Make use of markets and independent suppliers, try and build up a rapport with local shopkeepers so you get better deals, buy supermarket own brand items from toiletries and drugs to alcohol and tinned goods.  Often they are at least as good as the leading international brands that you’re used to buying.  You will find you save yourself significant amounts of money over time.

5 Offshore Investing Tips

1)  Anything is Better Than Nothing

You may feel that the fact you only have a few pounds/euros/dollars spare each month makes it not worth your while saving anything – however, just getting in an investing mindset by putting just a small amount away whenever you can, makes a big difference.  Research has shown that those who have a saving mindset find ways and means to squirrel away far more than they originally thought they could.  If you commit to putting away whatever you have left in your wallet at the end of the month, you may well begin competing with yourself to see just how much you can get away with not spending each week, just so you have a larger sum at the end of the month to invest into your offshore savings account!

2)  Be Rewarded for Regular Commitment

Many financial institutions – offshore and on – reward customers who make a regular savings commitment.  This could work very well for you – rather than offering a fixed interest rate on a fixed lump sum, you may well be given introductory preferential rates for becoming a regular saver.  Of course you may have to ask your financial adviser to find you a better savings rate each year, but you can leave that up to them and just carry on being better paid for saving even a small amount regularly.

3)  Shop Around for Savings Rates

Whether you have a lump sum to take offshore or you want to make a regular or even irregular savings commitment to a give offshore account, you need to look around and see who’s offering the best rates, terms and conditions on an account.  You can ask a financial adviser to help you, to save you time and effort, but you really should make an effort to find the best rates as not all banks are as generous as each other.

4)  Cover Up for a Rainy Day

Probably of most importance to you in terms of saving and investing commitments will be squirreling something away for a rainy day.  I.e., having something in an interest earning account that you can have instant access to.  This is because you never know when you may need to get your hands on a little bit of cash.  Speak to an adviser to get qualified and professional advice, but we think it is fair to say that if you have nothing saved so far, your first priority should be having something close to hand just in case of emergency.

5)  Less Can Be More

Even if you can only commit to regularly saving a tiny bit, if you are prepared to put it away for the long term towards perhaps a retirement savings pot, the length of time you have to save can make less into an awful lot more!  Speak to an adviser about getting your financial affairs in order so that you are making the absolute most of whatever it is you can save each month.