While everyone who takes the big decision to start a new life abroad does it for different reasons, there is a common denominator that’s a factor in most moves: money.

For many people, the expat life is a chance to take on a new role that allows them the ability to earn considerably more that they would be able to at home – and because of this it means that saving and financially planning for the long-term becomes a real possibility. It’s crucial then that you’re fully aware of the best way to do this – which is where our experts at Holborn Assets can help. Here’s why saving and effective financial planning is so crucial for expats.

  1. It will help you to clear your debts before you leave the UK

We’re not talking about mortgages here – they’re a whole different order of debt, which it is unlikely you’ll be able to pay off before a move abroad. Rather, we’re focusing on other debts, such as credit cards and loans, that you may have run up while in the UK. Planning well ahead of your leaving date and saving enough money to pay off these kind of debts is really important as it will make your financial management substantially more straightforward while you’re abroad. It also removes the chances of you losing out due to currency changes once you’ve made the move.

  1. It will allow you to build a contingency fund

The chances are, something will go wrong while you’re abroad. A job might fall through, or not be quite what you were expecting. If you’re moving out without a job, then finding employment might take longer than you thought. A family emergency might mean you need to fly home suddenly. You might get ill, and need to pay medical expenses. Whatever happens, we can’t stress enough how important it is to have a contingency fund behind you to cover you. Once again, it’s all about starting early – plan well before you leave to start saving to build your fund – and make sure that once you are on your way that the emergency cash is easily accessible. We recommend putting it in an account that you can access online or over the phone, as well as face-to-face in branch. Make sure that you also do your research and understand all of the fees associated with accessing the fund from overseas. Keep a close eye on how much these – as well as exchange rates – might add up to before you dip into your emergency savings.

  1. It will help you to become more financially secure for the long term

Once again, moving abroad is an opportunity for many people to earn considerably more than they might have done in the UK. It’s therefore crucial that once you are in that position that you take full advantage of it. Of course, your approach to investments while abroad should match your appetite for risk, and it’s also worth going with a UK bank that offers international savings accounts that you’re able to access wherever you are in the world. The big advantage here over local saving options is that everything will be done in English, reducing the likelihood of you missing any of the finer details in the small print.

Finally, starting to save early – well before you even leave the UK – encourages you to adopt a mindset of looking and planning ahead. While this big move abroad is an exciting first step, thinking about your long-term financial plan will also help you to prepare for whatever you choose to do after expat life.