Planning on Moving Overseas? Plan Your Finances As WellPersonal Finance
It’s always exciting to begin thinking about a move overseas. A new culture, a fresh start, a chance to grow as a person and as a family unit; could there be anything better? However, while it’s easy to get lost in the idea of all that awaits you once you touch down on the other side of the globe, it’s important to remember that you’re not abandoning real life. It’s still there, and that’ll mean all the financial aspects of your life. Below, we take a look at a few considerations that’ll ensure your finances don’t derail what should be an exciting time of your life!
Get rid of your Debts
It’s likely that you have some debt in your life. And while it can be a bit of a headache, it’s important to remember that your debt isn’t going to vanish the second you step out of the country: it’s going to follow you wherever you go. That’s why it’s a good idea to have all your debts settled – or at least well managed – before you leave. Even though you can continue to pay the debt off even when you’re not in the country, you’ll be more likely to miss payments – due to it being far away, in a different time zone, and so on.
Know The Rules
You may be out of the United States, but you’re still an American, and that means that there are specific rules you need to follow. For example, the US demands that all citizens file a tax return, regardless of their country of residence. You’ll also need to be compliant with FATCA, which requires American citizens to declare any accounts they have with Foreign Financial Institutions. Reading up on these matters may prevent severe financial complications later on down the line.
You’re moving overseas, and you may be working there. Still, it’s likely that you’re going to be taking money with you from a US bank account, or transferring money back to the States from your new country of residence. However, if you don’t have a procedure for handling your foreign currencies, then you might find you’re losing big money just during the transfer home. You’ll be well served by finding a company that specializes in overseas financial transactions. Nobody ever gets the true market rate, but you’ll be able to get close to the market rate, which will mean more money for you.
Let Your Bank Know
Also, remember that banks – rightly – take fraud very seriously these days. If you use your bank account in a foreign country and you haven’t notified anyone at your bank, then you might find your account blocked. Let them know: it’ll take two minutes, and may save you a lot of hassle.
Be Wary of Investments
Finally, it’s imperative that you maintain a cautious attitude if you’re thinking about investing in your new country. You don’t know the local market as well as others, so wait until you understand your new home before committing any cash.