Moving to a New Country? Here’s How to Improve Your Finances First
Moving abroad can feel a bit like jumping through endless hoops. With mounting paperwork to complete and multiple deadlines to meet, getting through the first stages is tough – but there’s always a light at the end of the tunnel. Whether you’re moving alone or with family, it’s crucial to learn about the best ways to manage your money ahead of the big day.
Even if you’re planning on working a job such as TEFL (Teaching English as a Foreign Language) as soon as you arrive, there’s no guarantee that everything will go to plan. Try to make sure you’ve got enough to cover for at least your first three months in your new home. If you’re moving with your family, save double or triple the amount you’d need just for yourself
Money management for moving abroad: Our top tips
1. Make sure you’ve saved
If you’re thinking of living away for a long time, it’s vital to ensure that you’ve saved enough money. In the worst-case scenario, moving to another country without enough money could leave you unable to support yourself.
Even if you’re planning on working a job as soon as you arrive, there’s no guarantee that everything will go to plan. Try to make sure you’ve got enough to cover for at least your first three months in your new home. If you’re moving with your family, save double or triple the amount you’d need just for yourself.
2. Build your credit history
Along with being able to prove strong and long-lasting financial relationships, building your credit history will increase your chances of being accepted for different finance products, including loans from banks once you move.
Luckily, there are a few simple steps you can take to maintain good credit history before you depart. To build and keep credit before moving away, it’s recommended that you:
Keep your existing UK bank accounts open
Pay the bills on time
Get a credit card, but keep its use low
Make regular, timely payments
Prove your ability to pay back loans
3. Pay off your debts
It’s imperative to make sure that you don’t have any outstanding debt when you leave the country. Not only would this make your credit score deteriorate, but it could also become much more difficult for the merchant or lender to get in contact with you.
If you fail to receive and act on payment instructions, your situation could escalate. Any bills, taxes, parking fines, and other debts left unpaid could result in an enforcement officer visiting your UK address. And if a bailiff cannot enter your property, your debts will only escalate.
4. Choose a new bank
Applying for an offshore bank account before you make the move could be useful. Try to do some research and find out which banks offer you the best features, checking if there’s a local bank with multiple-currency options.
While keeping your UK bank accounts will be vital for maintaining your credit history – and thus allowing you to gain new assets in your first few months abroad – you can only build credit in your new country by opening an account there. Stick to the same healthy habits with your money too.
5. Stick to a budget
It might be easy to get carried away with excitement when you move, but you should try to control your spending. Even if you have everything organized to a tee, unexpected accidents or mishaps could get in the way of your plans.
Manage your budget by only spending money when necessary. And to back yourself even further, you could keep some emergency cash in a separate bank account too. If you’re struggling, you can find free resources to help with budgeting online.
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