5 Financial Checkpoints to Address When Moving out of the Country
Friday, November 17, 2017, 6:00 PM | Leave Comment
Moving abroad is an exciting life change. You will live in a new country, meet new people, experience a new culture, and broaden your world view.
People move abroad for many reasons, such as being relocated to an international branch in their company, wanting to start a new life, or simply taking an extended vacation.
Here are some financial checkpoints to address before you move out of the country.
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Exchange for a Small Sum of the Destination’s Country’s Currency
As soon as you get arrive at the new country, you will need some cash, even if just to pay the taxi driver.
While most airports will have currency exchange services, you can often get a much better exchange rate at a currency exchange office in your own country.
Some companies, such as Continental Currency Exchange, know that having a place to rely on to exchange foreign money can be a godsend. It makes the process of immigrating much more straightforward.
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Set up a Foreign Bank Account
Whether you’re taking an prolonged vacation, moving abroad to work at a company, or planning on spending the rest of your life abroad, it is important to set up a bank account at your destination country.
A bank account is often required to pay bills, to sign an apartment lease, or to have your paychecks deposited.
Find out what documents are needed to open a new bank account and have it prepared as soon as you arrive.
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Maintain Your Credit
If you ever plan on returning to the U.S., it is important to keep your credit score running. You may want to purchase a car or a home when you return, and without a credit score, you will have a difficult time securing loans.
To maintain a good credit score, it is as easy as using your credit card a few times a year. For example, you can sign up for a credit card with bonus rewards for travel expenses to pay for your plane tickets.
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Set a Budget
Living abroad may raise or lower your living expenses depending on the country’s cost of living. Regardless, it is important to make a plan for how much you should spend on housing, food, traveling, health insurance, and other expenses.
Moving abroad does not mean you can forget about budgeting and finances. The last thing you want is to run out of money and have to leave before you planned. Set aside a fund for emergencies.
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Continue to Save for Retirement
It is important to plan for the future even if you are having the time of your life abroad. Regardless of how long you plan on staying in your destination country, saving for retirement is a must.
If your company offers an IRA or 401K plan, continue to contribute. Set aside money each month to put in a savings account so that you will be secure in your retirement years.
Now that you have a financial plan, consider meeting with an experienced accountant to figure out your tax responsibilities while abroad. Regardless of where you are going and what you plan on doing, money is a fact of life. With this knowledge, you should now be financially prepared to move out of the country.
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Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on twitter and Facebook.
