The latest cost of living data from Mercer shows that professional expats living and working in some of the world’s leading cities are often exposed to extremely high costs. Naturally this can make saving money each month very hard indeed. However, in these almost unprecedented times of economic uncertainty, we’re all under pressure to ensure we have some money saved for a rainy day.
If you’re wondering how on earth to cover your costs and still manage to put something away, we have some little known ways to save more offshore that will see you banishing debts, securing your financial position, and feeling much more confident about your money matters.
We will discuss how you can get the best interest rates offshore, how you can get out of debt more quickly, how you can make the most of your expatriate position to save more offshore, and how ultimately you can ensure you’re working towards building a solid offshore savings and investment portfolio.
Step One – Get Out of Debt Quickly
Britain’s self-styled money saving expert Martin Lewis advocates that anyone with any form of outstanding finance uses their savings and investment to pay off debt first.
He quite rightly points out that typically the interest you will pay on a credit card for example, is significantly more than you will ever earn on any money saved offshore.
Therefore the first step on the road to ensuring you’re in a position to save more offshore is to banish your debt.
Last year we published a very comprehensive guide full of practical expat solutions if you’re in debt abroad. And the tips are absolutely relevant to this day.
For example, we laid out a 5 point action plan for banishing all money worries which included facing up to the scope of the issue, working out which priority debts to pay off first, snowballing debts and being ruthless with your family’s finances by cutting back on all non-essentials until you’re debt free.
Step Two – Appreciate Your Expatriate Financial Advantage
There are many reasons to be quietly smug about the fact that you’ve achieved something that most people only ever dream of – i.e., you’re living the life you chose abroad in your perfect country. And one of the main reasons to feel smug is because expats have a genuine financial advantage over their peers onshore in the UK.
As illustrated in our report about why expats are actually in a better position to slash their debt, it can be harder for expats to get into financial difficulty in the first place!
With no established credit rating in a new country abroad, some expats even struggle to get a credit card to go with their new bank account. Expats are often better off because they receive a higher wage too, and those who live in a low or no tax nation should theoretically have more to throw at any outstanding finance each month as well.
However, the expatriate financial advantage goes far further than this. It can allow you to have more at the end of the month to save offshore, it can potentially enable you to access legitimate tax saving opportunities offshore, it can certainly open up the world of offshore banking, saving and investing, and it may well mean you can benefit from broad and beneficial diversification options for your money.
Step Three – Little Known Ways to Save More Offshore
In a recent article in the Telegraph, one of their financial journalists urged expats to swiftly take advantage of any offshore savings headline rates of interest because many indicators are suggesting rates will once again be slashed.
However, as we explain in our report about how some financial advisers can offer better interest rates on offshore savings, if you’ve missed out on the best headline rates you don’t need to panic.
You need to work with a regulated and reputable, independent offshore financial adviser to explore the extremely broad and potentially beneficial international marketplace to identify the best methods of approach for your money.
In so doing, and having identified such an adviser, you may well find that you can benefit from better rates of interest on your savings, so that anything you can afford to put away regularly will enjoy hopefully higher returns. This is because the largest advisories get better interest rate offerings, lower fee structures and so on for their clients from many of the leading financial services providers. These are benefits you never see advertised.
What’s more, rather than just saving your money onshore or back home in Blighty into a taxed account where interest rates are rubbish, offshore there are potentially much more suitable products for you, your money, your savings goals and your tax status.
The secret to getting more offshore is in identifying the best method to save and invest your money based on your individual circumstances. And the secret to identifying the right way forward is in working with a qualified adviser, regulated to assist you.
Step Four – Understand the Risks and Threats to Your Money – and Avoid Them!
The final secret to getting more from your offshore savings is in identifying any threats that exist for the erosion of your wealth. We tackled this topic head on when we explained how you can avoid the 5 main ways most expats lose money.
By identifying where you could actually be losing money offshore for example, you can ensure you prevent your saved wealth from being eroded by the likes of incorrect taxation or even currency conversion costs.
Take an overview of your entire financial status to enable you to see where you should be slashing debt, where you can make legitimate savings on tax, how you can avoid losing money like many expats unfortunately do, and how you can actually save more each month, and earn better rates of interest on anything you do save offshore.