Starting a new life abroad can be an exciting prospect. Offering the chance to experience a different culture and explore new surroundings, it’s no surprise that many people consider packing up and moving overseas. Unfortunately though, many expats fail to properly prepare for this transition and they overlook important issues associated with living in a foreign country. This can prove to be a costly error. If you’re thinking about emigrating, here are three mistakes you’ll want to avoid.
- Failing to save and invest for the future
One of the most common oversights people make when moving abroad is not financially planning for the future. It can be easy to underestimate the cost of living in a new place and end up overspending, making it difficult to put money aside for later years. If you want to save for the future to ensure you’re able to cover planned or unexpected expenses and to provide yourself with a good standard of living in retirement, it is important to put aside some funds. To do this, you may want to consider taking advantage of tax-efficient savings and investment solutions. For example, RL360° Quantum is a flexible, offshore savings solution that can help you to regularly save money and can easily be managed from anywhere in the world. You can find out more about the product, and check out RL360° Quantum reviews, online. To ensure you have enough money in your budget to put into savings products like this, you’ll need to plan your spending carefully.
- Not understanding local taxes
Another area where expats are often caught out is tax. Tax systems can vary quite a bit from country to country and not taking these differences into account when budgeting can soon leave you out of pocket. Also, if you’re not careful, you might end up paying more than you need to in levies. For example, you could end up shelling out to cover tax twice – once in your new country and once in the UK. To avoid any nasty surprises later down the line, it’s worth brushing up on your knowledge of local tax systems and considering how they will affect your monthly budget before you make the move. You can either do your own research or make an appointment with a financial adviser who can provide you with further information on tax systems and help you draw up a suitable financial plan
- Not checking or updating your insurance
It is also important to check your insurance policies and make sure they are up to date. Bear in mind that some types of cover, such as life insurance, may not be valid when you emigrate overseas. If you are thinking about living in a foreign country, make sure you review your insurance policies for peace of mind that you will be covered if an emergency situation ever arises. Pay particular attention to life cover, critical illness, serious accident, medical insurance and financial and income protection. Luckily, there are many insurance companies that can offer specialist policies for expats.
With enough preparation and forward-thinking, you should be able to avoid these common mistakes and make the most of your new life abroad.