Employers like resumes that show the applicant is independent, active, has an open mind, and has seen more of the world than just their own backyard.
With this in mind, more and more people are taking time off from their studies and jobs to travel or work abroad.
If you're thinking about doing something similar, this article will help you figure out how to manage your money when you travel, live, or work abroad. Once your finances are in order, you can spend the rest of your time having fun, seeing more of the world, and meeting new people.
You should keep your local bank account open even if you plan to live abroad for a long time. Then, if you need to, you can handle money and expenses back home more easily. You could even send some of the money you make abroad back home to pay off student loans or save up for a house someday. Also, by keeping your account open, you keep your credit history alive, which is important if you ever want to move back to your home country and maybe apply for a mortgage or credit card.
Next, you might want to think about opening a bank account outside of the country. If your bank has this kind of account service, everything just got a lot easier. HSBC, for example, has domestic accounts all over the world, and they also have offshore accounts for people who live or work abroad for a while.
With an offshore bank account, you can get to your money no matter where you are in the world. You can get cash from ATMs all over the world, check your account status instantly online or over the phone, and bank in more than one currency. Also, it's easy to move money around the world, and you can have one simple central bank account that lets you take care of all your financial needs from one place.
If you want to save money on ATM and credit card fees, you might want to open an account with one of the big banks that has ATMs all over the world and is known everywhere. One of the best things about using one of the world's top financial institutions is that their credit cards are more widely accepted, they work with many local banks around the world, and their ATMs have lower fees or no fees at all. Check the account's fee structure, though, to make sure there are no hidden costs.
As an expatriate, you have the right to use the offshore world to your full advantage. If you save money offshore, you can get better interest rates, have access to more interesting financial products, and benefit from the fact that interest on savings and investments is paid gross, which means before taxes are taken out. If you're going to make more money working overseas than you need to live, you might want to take advantage of this and save as much as you can while you can. This is called the "offshore advantage." You will be able to save more and have a better financial start than your friends back home.
Please keep in mind that you may still have to pay taxes on income and interest from savings and investments made outside of the country. If you need help with international taxation, you should talk to a financial advisor or an accountant.
