Five Finance Tips For First-Time Expats

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wp-picMoney makes the world go round, or at least it did at one time. Years ago, most people made the decision to work in a foreign country mainly because of the financial benefits that came with it. A majority of them then chose to return home when they had accumulated a significant amount and could lead a comfortable life.

However, nowadays people are interested in traveling and living abroad for various reasons, many of which may have nothing to do with money at all. Some do it so that they can enjoy a better standard of living, while others relocate just for the experience.

People today are also settling overseas so that they get the chance to see a new place, interact with various people, and learn about a different culture. While money may be an important factor in their decision to relocate, it is no longer the main motivation for many people to migrate, especially in comparison to times gone by. In fact, stories of people saving next to nothing in spite of working hard in another country for years are quite common, and this does not just happen with low-paid workers.

Well-qualified and experienced professionals are more likely to get higher compensation packages if they work with a multinational company in a foreign location. Businesspeople, entrepreneurs and freelancers also stand a good chance of earning more than what they do back home, if they have innovative products, services and ideas to offer. Unfortunately, many of them do not meet the financial goals they had set for themselves. The issue here is often not that these expats aren’t making money; is it the lack of planning finances in the right way. There could be a few reasons why a well-paid expat may fail to save up, including high living costs and high general expenditure.

The cost of living is similar for a majority of the residents of a given location, as it generally takes into consideration the amount they pay towards rent, utilities, groceries, transport, education and healthcare. For example, most people living in Switzerland feel that the cost of living is high. You may not be able to control the baseline cost of living in a country, and it is therefore important that you know how much you will be spending each month, compared to your income.

Monthly expenditure varies from one person to another, as it depends entirely on the type of lifestyle one leads. For example, if you rent property in the city center, eat out regularly, shop at branded stores, and travel to work by taxi every day, you are bound to incur higher expenses compared to others. It is largely up to you to control your monthly expenditure. Many expats reduce their monthly overheads by getting their employers to pay for rent, utilities, transport, healthcare, and even their children’s education. The more you can cut down on your expenses, the easier it will be for you to save money.

 

 

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Author: Expat Focus

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