So you have decided to move overseas? No matter whether you are moving for work purposes, to be closer to family, or simply because you want a better life, you are bound to be excited and nervous about the journey ahead of you. Moving to another country is something that can change your life; changing the way you think, the way you live and the experiences you have in your life. Nevertheless, it is something that is going to require a lot of planning and consideration. After all, you are entering a whole new world! So, with that in mind, let’s take a look at some financial tips to help you on your way…
Whatever you think you need, you are going to need more – Everyone always says this when it comes to big life changes – be it purchasing a house or moving somewhere new – and that is because it is true. When you work out how much you think you are going to need to move to a new location, it is important to add an extra cushion on top of this. After all, things do not always work out as we seem. Plus, life has a lovely habit of throwing unwanted surprises and unexpected expenses on us.
Consider healthcare – Some healthcare systems around the world are free, such as in the UK, but are you going to be entitled to use the system? If not, you may require health insurance, which is mandatory for expats in a lot of countries, as well as being mandatory for everyone in some places. You should research this carefully, as healthcare can be very expensive, and failing to take out an insurance plan is a massive risk you should not take. It is also worth pointing out that you should take out an insurance policy before you travel, as you need it to be valid from the moment you step off the plane. After all, illness doesn’t wait around for anyone. If you or someone in your family was to fall sick and you did not have an insurance plan, you could find yourself with an extortionate medical bill to pay.
Research the living costs – The living costs in NZ are going to be very different when compared with the living costs in the UK, India, or anywhere else in the world for that matter. A lot of people make the mistake of calculating the amount of money they are going to need to live off based on what they spend at present. This is a big mistake to make. Take Australia as a prime example. The wages there are known for being very high, and so people often think that if they move to Australia they are going to have plenty of funds to spare. However, Australia has very high living expenses, so you need to take everything into perspective to work out if you are going to be better off or not. You can easily research living costs online. There are plenty of great guides that can be of assistance. You can even take a look at online stores and supermarkets to get a better understanding too.
Move your pension – Another important move you need to make is with regards to your pension. Most people who retire abroad will have two sources of income – a private or employer pension and a state pension. You need to conduct research to find out how your relocation is going to impact any benefits or retirement you may be entitled to at the moment.
Get to grips with your tax affairs – Tax can be complicated and frustrating, and so working with an advisor may be the best route to go down if your tax affairs are complex. This can certainly be the case if you have multiple properties or businesses. You and to be aware of your tax implications in your current country, as well as the country you are moving too. The last thing you want to do is end up paying tax twice, but equally you do not want o make an error that could land you in legal hot water.
Think about how you are going to send money abroad and opening a local bank account – You are going to have money matters to deal with that you probably have never dealt with before. This includes setting up a foreign bank account, as well as sending money overseas regularly – of course; this all depends on whether you will still have commitments in your home country. It is important to look for methods that are secure, safe, and do not come with hefty rates. You also have to consider the exchange rate too. Did you know that you could benefit from fixed rates of exchange for a set period of time by using certain services?
Get vacation mode out of your mind – Last but not least, it is pivotal to remember that you are moving to a new place to live, you are not going on an extended holiday. A lot of people struggle to get out of vacation mode and they end up burning through their cash way quicker than expected. Would you go out every night at the moment? If not, then you probably shouldn’t be doing it in your new destination either.
So there you have it: some top tips to help you move abroad. There is no denying that there is a lot to consider when moving to a new country. Nevertheless, getting your finances right should definitely be your priority. This requires a lot of research and a lot of planning, yet it will all be worth it in the end.