When the breadwinner of the household is working abroad, this puts a lot of strain on the family in many ways, and there are several ways that the working expat can handle the family finances. Many people set up a list of direct debits that include all the domestic bills, plus they wire their partner an amount to last the family until the next month.
Online Money Transfers
Things have changed in the past few years, allowing people to wire money anywhere in the world, without the banks taking their slice of the pie, which is refreshing. Major players like TransferWise and PayPal empower people with regard to their finances, and should the expat have to face an unexpected expense, Nimble offers quick funeral loans or emergency funds for medical treatment. The online lender is ideal when you need a fast injection of cash, and if you are a working expat, you would have no problems obtaining such a loan. Blockchain technology has empowered digital financial services to the point where they can offer super-fast money transfers for a very small fee, and most banks actually have their own app that allows their customers to send money to most countries in the world.
Taking the Family
Some working expats insist on having their family with them when they are working in Bangkok or Singapore, and if the employer is OK with the expenses, this is actually the best way to save money. Unlike at home, your employer will pay for your family housing, transportation, and most importantly, your children’s international education, which is expensive. If all of your family’s living expenses are paid by your employer, this means you can put money away for a rainy day, but not all employers are prepared to invest so much, and in many cases, the worker must come alone for a 2-3 year contract, although they would have paid leave and flights home at least 3 times per year. If you are planning to set off soon, here are a few great travel gadgets to include in your luggage.
Most working expats have premier health and life insurance, which is often paid for by the employer, and should the worst happen, the family would be well-taken care of. For the working expat, excellent medical insurance is a must, as needing serious medical treatment in a foreign country can be very expensive, and this cover should extend to the family, regardless of where they are located. Here is some information for Australians who plan to live and work abroad, which is very informative.
Some of the big earners enjoy the benefits of offshore banking, although they must be sure to comply with the requirements of their respective home nation. Middle East workers usually enjoy many tax concessions, and a lot depends on the industry, but many operate offshore, and this allows a person to plan for a secure financial future.
If you are thinking of accepting a position in a foreign country, you should weigh up all the pros and cons, and if your sponsor is generous, then the expat life can be very rewarding in many ways.