Most Important Money Information for Expats Ever!

Well, this article has a lot to live up to if the title of it is anything to go by, we haven’t put pressure on ourselves here or anything!  But yes, we are about to impart what we feel is the most important money information for expats ever!

It has to do with making sure that you have a safety net when you move abroad and are living life overseas as an expatriate, it’s about how and why to build that financial safety net and where you can put it to keep it safe.

Many people are aware that they have to have cash on standby for a rainy day, but in this article we’ll go over all elements of this theory, and why expatriates are especially vulnerable if they don’t have money put by, and where that money should be stashed so that it is safest.

Having a Financial Safety Net

Any financial adviser worth their salt will tell clients that they need to have about 3 months salary put safely by in cash deposits so that they can easily get their hands on it should the need arise.  This is the very first step on the road to financial health and security, after discussing ways and means to pay back any debt of course!  The theory is that if you lose your job for example, you have a cash safety net to support you until you get back on the road again.

Having this cash put by is viewed by most people as commonsense and absolutely essential as the first and most fundamental way towards fiscal security.

Why Expatriates Need a Financial Safety Net

If you’re planning on moving abroad then one of the first things to get right is the financial side of your planning.  You need to have the money available to you to physically make your move happen.  Moving abroad literally costs money.  You have to pay for your travel, perhaps the transportation of your personal effects, you may have to find rental payments and bonds, or deposits for property if you’re buying a home abroad.  You may have to furnish a new home, pay for a visa, pay to be connected to utilities, pay to get your children into international school.  The first few months of deciding to become an expatriate and then physically moving abroad will see you get through substantial amounts of cash.  Therefore, you need to be fiscally secure before you move abroad if you want to take the financial pressure off yourself and make the move a success.

So, if you’re even just thinking about moving abroad, you need to start saving and make sure that your cash deposits are healthy.

Once you move and settle down to life overseas it is critical that you build this financial safety net back up so that it is ready, available and close at hand for you.  This is because on the one hand you are just as potentially vulnerable in life as the next person to the slings and arrows of outrageous fortune, but what’s more, you may not be entitled to any benefits back home or abroad if you were to fall on financial hard times.

So, for expatriates, having a financial safety net is a critical requirement.

Where Should Expats Keep Their Financial Safety Net?

This is the next question to be asked, and whilst for onshore Britons the most common answer may be, you keep it in a savings account in a local bank, for expats the options available to them are far more in number, as are the careful considerations that need to be kept in mind when looking for the safest place for such capital.

You see, you could keep the money onshore with you in your new country – but what if you needed access to the money at short notice and for some reason that money was frozen and out of your reach.  This could happen if you were living in a less than stable nation, economically speaking.  It could happen in a place like Dubai where someone could put a claim against you (even your landlord over unpaid rent for example), and whether they had a legitimate claim or not, the money could be frozen and out of your reach.

So, perhaps it would make more sense for you to keep it in your old home country – but are there investor or bank protection schemes in place to cover you as a non-resident, to cover the amount of money you are holding on deposit and to cover the given institution or account you have chosen?

Or should you keep it offshore?  Some easy access savings accounts offshore offer better terms, conditions and even interest rates and can ensure that you’re your emergency fund of cash is growing healthily.  But then, what if you were in a situation where you needed the cash the same day?  Could you easily get your hands on it?

Getting Help and Advice About Where to Keep Your Cash Safe

As you can see from the above, you need to take advice about where best you, as an individual, should stash your cash so that it is a) safe, b) growing and c) easily accessible should you need it.  The choices available to you are as unique as you are yourself!  An expatriate financial adviser will be able to look at you, your circumstances, the country you’re living in, any risks you’re exposed to or are averse to and come up with the right solution for you and your financial safety net.

They will show you where best to place your deposits so that they are well protected, and yet readily available to you.

As getting this part of your entire finances right is the most crucial and the most critical, don’t delay, seek advice today and start saving hard if you don’t already have the funds available.  Remember also, if you are seeking financial advice and require a recommendation, we may be able to put you in touch with someone in your location, .(JavaScript must be enabled to view this email address) to see whether we can assist.