Financial checklist of things to do when relocating to another place!!!
March 30, 2021
Taking the opportunity to relocate to complete an assignment at a distance makes you live in a new culture and get to know about something different. Employee relocation is common and many organizations choose to transfer their employees to different places to complete the tasks.
Relocation is quite an exciting task which comes with a lot of opportunities but at the same time, it is also a very tiring and exhausting one which can also make you feel out of money in a small period. You can calculate here the approximate cost of moving and make sure you have ample savings.
In certain cases, it can also ruin your savings but you need to have a proper plan for relocation to make your move smoother and efficient.
Check out this to do financial list!!!
Sorting your existing bank account: Before relocating to another country, you should sort your existing bank account in the home country. For your own comfort, your ordinary bank account will need to be converted into a non-resident ordinary account. This account will allow you to maintain your balance in your home country’s currency.
You can receive the money earned in the home country even after relocating to another place via this account and it also provides many facilities, such as net banking, debit card, etc, to make payments locally, whenever you visit your country. This will make your life more convenient and easier.
Prepare a budget: You need to prepare a budget before relocating to another country so that you can avoid extra spending. Different countries have different costs of living and you need to research the living charges prevailing in the particular country where your company wants you to relocate. You can also take the help of a relocation management consultant to prepare a budget according to your earning as they are well aware of the cost of living in different countries. When one moves internationally, it is obvious that he or she will want to explore that particular country. So, draft a budget accordingly. Your cost of living varies according to the country type and so on.
Check out best banking options: One will need to have a bank account in the country where you are going to relocate to deposit his or her earnings and also will require various banking facilities, such as debit card, credit card, locker facility, net banking, etc, for the duration of their stay.
Before your relocation, the relocation management companies can help you to check out various banking options which will be suitable for you. They can also help you to set a particular bank account in the host country by completing all the legal documentation formalities.
Get to know about covered and non-covered expenses offered by your company: It is the responsibility of the company to inform their employee who is going to relocate to another area for company’s work, about the expenses that are covered in the relocation package and also about non-covered expenses.
Some companies provide only necessary expenses, such as moving costs, health insurance charges, visa fees, security deposit, etc, and other expenses such as housing charges, maintenance charges or entertainment expenses, etc, are paid by the employee from his pocket.
It can be expensive for some employees to relocate internationally, therefore, it is better to inform them beforehand about the same. An employee should read the details of the relocation package to know what is covered or not within it.
Clear your insurance and income tax: You will have clear paperwork of all the insurance policies you have. If there is any dependent of yours in the host country then you may continue your life insurance policy but in the case of general insurance, you may have to discard the particular policy. For example- if you have any vehicle, you may sell it before moving, so there will be no need for vehicle insurance. Also, one can have health insurance in the host country. Before leaving, you will have to also pay your income tax, if pending. To file your taxes, go to a chartered accountant who will help you to sort out all such financial problems.
Don’t forget about the after retirement life: Of course, you won’t be able to earn that much amount when you got retired therefore you should never forget about that time and this will be the time when you need money the most so savings should be your priority always. You should keep on investing and should understand all the compensation amount that the company is offering you to complete the project or assignment in another country.
Wrapping it all up!!!
For more growth opportunities and more career development, it is a great idea to relocate to another country and if your company wants you to relocate then again it is quite a big opportunity for you but you should also be prepared financially. Check all the above options that help you to relocate without worrying about finances.