Moving to another country is a huge curveball in anyone’s life. The culture, the people, the food, and everything else may be completely foreign to you. Living life as an expat doesn’t have to be scary. In fact, experiencing a new country can be quite exciting.
Proper planning and preparation will help make your transition to another country a bit more manageable. Once you have your heart set on a destination, it’s time to begin saving. Here are a few financial tips for when you’re planning to move abroad.
Build your savings
It costs a lot of money to move to another place across town, and it costs a whole lot more money to relocate yourself (and possibly a family) to a new place in another country. You have to think about paying for much more than just transportation and housing to successfully relocate to another country.
You’ll need furniture. Some countries don’t provide kitchen appliances, and that expense will be on you. It’s advised that you have at least six months worth of income saved before you start taking steps towards an actual move.
Get your legal documentation in order
Before you can move to another country, there are a few pieces of legal documentation you will need to have in order. One of the most important pieces of documentation is your passport. Make sure your passport is active, and then move on to applying for the proper travel visas.
Some countries require that you have held a valid passport for a minimum of six months, so you’ll want to get started on this step as soon as possible. Understand that the process of relocating to another country can take more than a year.
Establish two bank accounts
Establishing a bank account in both your home and your new country of residence will be essential for avoiding financial roadblocks. You need access to money before you move from your home country, and you don’t want to have to wait once you get to your new country to feel financially comfortable.
Establish two credit cards
Obtaining a credit card which is fluently accepted in your destination country is a sound financial move. The currency on the card will default to the host country’s currency, and you will escape the addition of transaction/exchange fees and fluctuations.
Establishing and maintaining a positive relationship with a credit card agency in your home country covers all of your bases.
Once you move to another country, establishing a credit card in your home country will be nearly impossible with a foreign address. However, changing an existing credit card’s address to a foreign address is widely accepted.