Overcoming practical financial challenges that expats face!
Dealing with the everyday challenges of money management is hard enough in your home country, where you generally understand most financial concepts. Imagine doing that in a foreign country with different rules and regulations and an unknown language!
The top three financial challenges faced by expats are:
- Finding optimal money transfer services
- Understanding the tax laws of the new country
- Obtaining loans or credit cards
When you move abroad and begin your expat life, one of the biggest challenges you face is to find the right way to send money back home. International money transfer can be tricky! Some of the problems you need to deal with are high transaction fees and fluctuating currency rates.
However all of these issues can be easily sorted out by selecting a reputable and dependable money transfer service that can help you transfer money instantly and also provide you with the most competitive exchange rates that’s definitely cheaper than banks!
Dealing with taxes is complicated and the paperwork associated with it is vexingly difficult. Living in a new country means you need to now get used to a new system. In order to understand the new system, ask these questions upfront.
- What will I be taxed on?
- What are the documents required?
- Will I be taxed on my pension?
- Whom do I liaise with?
Expats also face additional reporting requirements, including reporting any foreign bank accounts, any non-residential country mutual funds, pensions and investments. Several tools and apps such as IRS2Go, My Bock Ask a CPA etc. are now available which can help you compute your taxes and you can also avail the services of a financial advisor to help you out.
Most countries require you to have a good and healthy credit record in order to apply for loans or credit cards. However, when you move to a new country, you realise that you don’t have a credit history which makes it difficult for you to obtain a loan. What you can try to do is, provide a record of your credit history from your home country. But that might not be accepted everywhere. So, the only solution is to build your credit record from scratch. Pay your bills on time, keep your debt low and avoid opening too many bank accounts.
Most of the time, the problems you’ll face as an expat will be due to the fact that you are not familiar with all the laws and fine-print. So don’t hesitate to ask for help!