Avoiding financial difficulties as a newbie expat

Becoming an expat takes more than just choosing a destination and booking a flight.

In spite of the excitement of arriving in a new country, the realities of becoming an expat must include planning ahead for your financial needs. There’s a lot to consider, including opening bank accounts, calculating exchange rates for transfers, making payments and setting up standing orders for utilities if you’re renting or buying a home. You’d be right in thinking these tasks are tedious and very boring, but the results of getting them wrong can be even worse.

Arranging to transfer funds as and when they’re needed is, obviously, one of the first things to set up once you’ve opened a bank account in your new country. The world of currency exchange with its fluctuating rates and confusing terminology can be a nightmare for newbies, but a few logical steps can save money and ensure success. Finding the best exchange rate for a transfer is easy online, with comparision sites queuing up for your attention. Once you’ve selected one and everything’s gone well, establishing a relationship with the company is a good idea, especially if you’ll be transferring on a regular basis.

One worry for many new expats is that their credit and debit cards may not be accepted in their new location. Basically, calling your card provider before you leave and asking about their policy for your chosen country puts your mind at rest at best, and leaves you time to get more acceptable cards if you’re not happy with the response. Requesting info about their charges for using your cards in overseas ATMs is also an idea which just might turn into a nasty shock!

If you’re travelling between countries, you may find accessing your cash is straightforward in first-world countries, but less so once you’ve arrived in third-world parts of Asia, Eastern Europe or Russia. In this case, the two options available are an irritable long-distance phone call to your provider or a visit to a local bank for advice on how to get your money – provided the bank clerks speak English. Easier still is getting multiple cards before you leave, home. Another savings tip is to always opt for payment in the local currency when you’re paying by card.