Here’s How to Get Your Finances in Order If You Plan to Work or Live Abroad.

How Is Money Affected Crossing Borders?

Global finances are constantly changing. It’s important to know how money works around the world for a number of reasons.

Labor, immigration, tax, securities and other financial laws can be complex. Whether you have dual citizenship, have family overseas or you’re moving to the U.S. from a different country, understanding how money crosses borders keeps you from enduring penalties and other financial pitfalls.

Here are five financial tips for expats to manage your financial security no matter where in the world you are.

1. Manage Your Cash With Care

How you handle your cash at home is just crucial, if not more so, abroad.

If you’re traveling for work, study or vacation, there are expenses that you expect to encounter—and some you don’t.

You may have created a spending and savings plan to finance your expenditures, yet when you arrive to the country you’ll be visiting, there could be more you’ll have to budget for, such as:

Visas and registration paperwork
Utilities
Health and/or car insurance

You may also need to exchange your money, which can impact the value of your money.

2. Pay Your Taxes!

If you’re a U.S. ‘person’, you must pay taxes no matter where you are in the world.

If you’re working or vacationing abroad, be mindful of tax season back home. You’re still responsible to pay your income taxes, which can be affected by tax codes in the U.S. and your country of residence.

3. Consider Banking and Money Transfers

Even if you have accounts set up in your country of origin and where you live abroad, you may still have to transfer money from home at times.

It’s important to know ahead of time which services offer the best exchange rates and fees. Also consider how your international banking affects your credit cards and credit score.

4. Don’t Let Day-to-Day Costs Add Up

Planning ahead for the cost of living in the country you’re visiting is most likely on your financial checklist. However, consider “lifestyle creep” as you spend your time in two or more different countries throughout the year.

Lifestyle creep is when your expenses rise as your income stays put. It’s good to enjoy yourself as you live abroad, but keep in mind your safety net (aka emergency funds) to cover unexpected costs.

5. Plan Your Retirement and Estate

When you decide to retire, it’s essential to organize for where, when and how much cash you’ll need. It’s also a good time to plan your estate as the laws in your home country versus where you reside abroad could differ and/or conflict.

You’ll need to plan for where you want to retire; where the funds will come from (i.e. retirement account or assets from investments both in the U.S. or abroad); and how you’ll write your will and plan your estate.

It’s in your best interest to work with a Financial Planner at this step to ensure that you can navigate the financial jurisdictions of both countries, especially if you have family and/or real estate.

Need Help With Your Cross-Border Financial Planning

Living abroad is a thrilling adventure that can present as many rewards as challenges.

How you manage your cash and assets in other countries can impact your overall financial security. If you need financial assistance as a U.S. citizen or as a UK citizen moving abroad, Fyvie Financial is at your service.

Our cross-border services include, but aren’t limited to, currency consideration, credit score analysis and estate planning. Book your complimentary discovery call today to speak with one of our Financial Planners about how we can help you create a custom financial plan.

For more information, visit our Services and Pricing page.

5 Cross-Border Financial Tips for Expatriates