There are bound to be tonnes of ideas whizzing through your mind with regard to career and money, but before you start booking your flights, take a step back and consider the financial implications of leaving the UK.
Jetting off abroad without a solid financial plan could result in negative consequences, from failing to find somewhere to live to being unable to return home quickly in an emergency.
With this in mind, PSS International Removals – which specialises in moves overseas – has provided some top advice on making the most of your move abroad:
Save before you leave
Never underestimate the need for sufficient savings – ideally we recommend having 7-9 months’ worth of living expenses prior to your departure if you’re moving for good. The exact amount you’ll need, though, will obviously vary depending upon your job, lifestyle, family status and the current exchange rate, amongst other factors. Remember to consider not only the costs of moving overseas but also the costs of repatriation should it all go wrong. Better to be safe than sorry!
If you find yourself having to move abroad before reaching your savings target, don’t worry. We suggest you at least try to secure enough funds to cover your housing costs, emergency healthcare and repatriation expenses.
Stick to your budget
If you don’t have an accurate sense of the cost of living in your destination, you could get through even a healthy savings account within weeks!
Before your departure, identify the costs of housing, food, education, entertainment, transportation, utilities, insurance and, of course, beer. Then create a monthly budget based upon your income and projected expenditures – be honest now.
Research your banking options
Expats heading to countries with less developed financial systems should be cautious with regard to banking. Verify whether your deposit will be guaranteed and by whom. If your new country’s government guarantees the accounts, consider the stability of that government. Should the guarantor be a private organisation, research the solidity and reputation of the organisation and confirm that the private banks in your new country allow British citizens to open a bank account.
Set-up a bank account early
When possible, start your bank account application process well in advance of your departure. You may find it difficult to open an account before arriving, but at least try to identify and collect all the relevant documents that you require to get started. Delays can cause unexpected financial stress and you may encounter difficulties in finding housing, obtaining a credit card, among other things.
Tax considerations
Unfortunately moving overseas won’t help you escape from debt. Most countries require citizens to file tax returns and pay taxes when residing abroad, even if they also file a return in their home country. State taxes may also apply if you’re renting or selling your home while abroad. Given the complexity of these issues, make sure you discuss your situation with a qualified advisor or accountant before you leave.
Save up if you’re hoping to retire abroad
If you’re avidly planning your wild and care-free twilight years on the other side of the world, then you’d better make sure you can afford it. If you’ve got a pension plan, you should contribute to it while abroad. If company policy excludes expats, ask if the plan can be amended to allow expat participation.
Maintain a healthy credit score
Although you may be proud of your credit score when you leave the UK, did you know that it could disappear if you live overseas for an extended period? That’s right, and this may lead to trouble when you return home.
But you can breathe a sigh of relief, as the solution to avoid this is simple: remember to use a UK credit card a few times a year, and make sure you settle your debt on time. This will make sure your score is kept on track.
