Moving abroad has massive financial implications. You’ll likely have to sell valuable assets – like your home and your car – in your home country, which could mean coming into quite a bit of cash before you move. On the other hand, you’ll likely be investing in new things – again, like a house and car – once you’ve moved abroad. Not to mentions all the other expenses, like doctor’s visits, application fees, and plane tickets. Once you’ve landed, it may take quite a while for you to become financially secure in your home country. So, I’m sure you can see why it’s more important than ever to reduce your financial risk when moving abroad. We’ll be guiding you through a few things that can help you do this.
Insurance is one of the most fool-proof ways of ensuring financial stability and reducing financial risk. By paying a set amount each month, you, your family, and your valuables will be covered in case anything should happen. There are various types of insurance – home insurance, car insurance, life insurance, and even health insurance for traveling abroad, so you can be at peace knowing that your financial risk is lessened. In case you were wondering – insurance lowers your financial risk by lessening the odds of you having to pay lump sums of money at once.
Having a separate account for emergency funds is always a good idea, but even more so if you’re moving abroad and you’re not sure where your income will be coming from for the next few months. Many types of savings accounts, emergency or otherwise, require a notice period before being able to withdraw from them. If you’re moving abroad, it’s a good idea to give notice in time for the money to be released before you move, so that you can have immediate access to it. While building up your savings is generally a long-term thing, there are ways of saving money fast, so you should start saving as soon as you decide to move abroad.
Make all withdrawals before you move
If you have any money that you’ve invested, or that’s in a fund or policy, or even in a type of fixed deposit, the wise decision would be to withdraw it before you move abroad. That includes things like pension funds. The reason for this is that many banks won’t let you withdraw money unless you’re in the country itself. You can always reinvest it once you’ve settled. It may be that you’ll need to wait a while before being able to access those funds. Since this will depend on the type of investment, we recommend reading any contracts or terms and conditions so that you have a better idea of what to expect.
Avoid moving with Loans
Similar to withdrawals, it’s advisable to pay back any loans before you move abroad, as it can be complicated to pay them back from overseas, and having unpaid loans can even prevent you from moving. You can always reapply for the necessary loans – such as a private student loan – once you’re abroad.
Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.