Moving to another country can be life affirming and extremely exciting, but you are going to have 101 things to think about at the very minimum before you hop off on a plane or boat ready to live your new life. Not only will you need to consider what you are leaving behind, how you will move your belongings, and whether you’re going to get homesick…
You’ll need to think about the financial implications that come with moving to another country – there can be a lot of them, depending on your financial situation now and where you are looking to move to.
Below, we’ll take a look at the financial implications of moving to another country that you’ll seriously need to consider. Take a look so that you can make a smart decision for your future:
If you’re moving to another country you’ll seriously need to consider your retirement and how that will be affected. In the short term, you may be able to get onto an expat plan that will allow you to continue making your 401k contributions. However, you may lose this opportunity, so this is something you’ll need to think about in detail before going ahead with your decision.
In some countries, you may also be required to contribute to the local retirement or pension plan. Make sure you thoroughly research this before you decide where you are going, as it could mean missing out on saving a substantial amount for your pension.
Getting A Job
Getting a job is something you should think about before you go. If you’re moving for a job, then you likely already have a position waiting for you. That being said, lots of people are not so lucky. Having enough cash to keep you going is a must if you’re going to job hunt once you arrive. Looking for jobs well in advance of the move is always the better way to go.
It’s so important that you sort your finances out before you go, as local banks usually require a credit history and proof of address to set up an account – which you won’t have when you arrive. Having two bank accounts can be an important part of moving abroad if you want to make sure that all of your needs are covered.
You will need a home bank account to access cash in your home currency, and you may also have other things to pay for while you’re away:
- such as a mortgage,
- tax payments,
- recurring bills,
- and more…
You may also need this account to receive payments in your home currency, such as rental income if you are renting out a property back home.
Managing your every day cash needs means you’ll need a bank account in your new host country, too. It’s a wise idea to transfer 3-6 months of living expenses ready in this account, so that you have plenty of funds available for any unforeseen expenses that could mean you ending up wrong footed.
Without doing this you may be forced to exchange currencies at the wrong time, and this can get very costly indeed. Large, reputable banks are always better than smaller banks, so make sure you do your due diligence before you open an account.
Some people also recommend having two credit cards, although this is up to you and can depend on your credit score.
The Cost Of The Actual Move
Of course you can’t move without considering the cost of the actual move overall. You’ll need to price up your transport to your new location, whether plane or boat. You’ll also need to look into moving vehicles and your belongings, which can get extremely costly if you are moving larger, more expensive items, and even pets. Even taking a citizenship test can cost you money – you can find more info here if you need it.
Finding A Financial Advisor
You’ll want to find a financial advisor who has cross border knowledge so that you can have peace of mind as soon as you arrive at your destination. They can help you with things like managing currency risk, an investment portfolio, and dual-nation tax reporting.
These things can be problematic if you don’t know what you’re doing, and there are many complicated rules and regulations that could throw you off in other countries. A trusted advisor that knows what they are talking about will be invaluable to you and your move.
Special Quote: Don’t have any regrets, just try it !
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