Update your Financial Plan
You have of course created your financial plan but the move to a different country means you have to update the plan. The income could be different and also in a different currency. Ensure that current obligations will be taken care of. There could be additional expenses in the beginning for transport, settling down etc. Expenses could increase if you cannot wind up your home in the current place that you/ your family is living in. You should add to the emergency expenses as well. Investments should be taken care of. You should think of how to continue with current investments, how to make new investments from a foreign land and what kind of investments can be done in the new place that you are living in. Ensure that you take insurance cover for yourself in the new country. If your dependents will continue living in the current place, ensure they are financially secure. Ensure that funds are transferred to their accounts regularly. You should cover your old age parents with medical insurance.
Secure all financial data
It is important to have online banking usernames/passwords, PIN numbers, credit card details etc. handy. It is also important to change the passwords and PIN numbers as required. Ensure that you have all the bank statements, credit card statements, and investment statements of the current country emailed to you so that you know your financial position even when you are abroad.
Ensure tax liability is in place
Make sure that you pay your taxes on time in the country that you were staying in before. At the same time, make sure you are knowledgeable about tax filing requirements and tax payments in the new country.
Understand the financial system of the new country
Make an effort to understand the financial system and banking system of the new country. Some of the points that you can research and learn about are –
- Good banks to open your banking account with if you have a choice.
- Account opening process and related documentation
- Features like deposit and withdrawal limits, interest rate, debit card features and multi currency related services
- Customer service details like toll free numbers, communication language etc.
- Foreign currency rules
- Requirements/ Restrictions on credit needs for foreigners.
We may be short of time as we need to complete many tasks and tie many loose ends but managing these details will save us from hassles later on-
- Inform Insurance companies, banks, mutual funds about the change of address and contact details.
- Set up auto payment for recurring expenses that you think will continue in your absence.
- If you have set up some services for auto renewal, have a look at them and decide if they are needed or can be cancelled.
- Keep cash in the local currency and easily convertible currencies like dollars and pounds handy, as it would take time for you to set up your account or get your pay cheque in the new country.
Moving abroad is a dream harboured by many of us. We must ensure that we take all steps from a financial perspective so that the transition to the new country is smooth.