How to manage your finances as an expat relocating
As an expat relocating to a new country, the move can be both exciting and challenging at the same time. Regardless whether you are relocating as an individual or with your family, there are always so many things to consider. The last thing you would want is to be worried about your finances. In this article, we share some tips on how to better manage your finances when you relocate.
Open an international bank account to avoid paying additional charges
Transferring funds to an overseas bank account may be slightly easier these days, but it still tends to be a tiresome and expensive process. Given that you are relocating to a new country, it is likely that you will need to convert between currencies. Hence, in the plausible event of unfavorable exchange rates, it can result in losses of the value of your money.
A recommended solution is to open an international bank account, such as a Global Account with Citibank International Personal Bank (IPB) Singapore. This is a multi-currency account, which means you can hold different currencies at the same time. Particularly, with a Citibank IPB Global Account, you can hold up to 10 different currencies, including USD, GBP and EUR. As such, you have the option of exchanging your currencies only when the forex rates are in your favor.
On top of that, if you are already an existing Citibank client elsewhere, you can enjoy free funds transfer between your Citibank accounts globally. With a Global Account, you can indeed avoid paying unnecessary additional charges.
- Get ahead of your insurance policies to provide for the relocation
Insurance can be a tricky business. You should never assume that your existing insurance policies – personal accident, life insurance or medical coverages – are valid in the new country you are relocating to. Do your due diligence to ensure that your policies continue to provide coverage after your relocation.
Alternatively, you may wish to consider switching to international insurance if the premiums for extending your existing policies are not justified cost-wise. In fact, if you opt for an international bank account as above, it typically comes with the option of purchasing international insurance.
- Consider if you would like to diversify your investments internationally
While this may not be specific to your relocation as an expat, do consider the benefits of wealth diversification internationally. If you have plans to invest in bonds or stocks, you should decide which is the ideal location to hold these assets. A good starting point would be to consider a country that has demonstrated political and economic stability, like Singapore.
If you have further doubts to clarify, you may like to speak to a qualified wealth manager from a reputed bank such as Citibank IPB Singapore, to find out more about holding your assets in the country.02 Nov 2018