It’s a fact that employers look favorably on a resume that presents an independent, dynamic individual
who has an open mind and has seen more of the world than their own back yard.
With this fact in mind a greater number of people are taking time away from their studies and careers
nowadays and spending a period of time travelling or working overseas.
If you’re considering taking a similar path this article will help you get your head around managing your
money when travelling, living or working abroad – once your finances are in order you can spend the
whole of the rest of the time having fun, exploring the wider world and meeting many new faces!
Even if you’re planning a prolonged period of expatriation you should keep your local bank account
open. You can then manage money and expenses back home more easily if needs be, and maybe even
send some of your overseas income back home to pay off student loans or to save up for a house
purchase one day in the future. Furthermore by keeping your account open you’re keeping your credit
history alive which is important if you ever plan to re-settle in your home country and maybe one day
apply for a mortgage or credit card.
Next up you might like to think about opening an offshore or international bank account. Possibly your
bank offers such account services in which case everything just got even easier! HSBC for example
offers domestic accounts all over the world and they also offer offshore accounts to expatriates and
professionals living or working overseas for a period of time.
An offshore bank account will allow you to access your money wherever in the world you’re located, you
can have access to money from ATMs around the world, you can have instant access to your account
status online or over the phone and you can bank in multiple currencies. Furthermore you can easily
transfer funds around the world and have one simple, central bank account structure that allows you to
manage all of your financial needs from one centralised location.
To reduce ATM and credit card fees consider opening an account with one of the major financial
institutions that have ATMs all over the world and who are recognised around the world. The benefits
of going with one of the world’s leading financial institutions is that their credit cards are more
universally accepted, they partner with many local banks around the world and customers enjoy lower
or no charges at any of their ATMs which can be found all over the world. Always check out the charge
structure on any account though just to ensure there are no hidden fees.
As an expatriate you’re entitled to take full advantage of the offshore world and save money offshore
thus enjoying better interest rates, having access to more interesting financial products and benefiting
from interest payable on savings and investments being made gross, i.e., before the deduction of tax. If
you’re going to be earning more than you need to live on when working overseas you should consider
taking full advantage of this fact and saving as much as you can while you can benefit from the offshore
advantage. You will increase your savings power and give yourself a good financial start over and above
your peers back home.
Please note that you may still be liable for taxation on income derived from and interest earned on any
offshore savings and investments and international taxation advice should be sought from a financial
adviser or an accountant.