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Insights on money, career and trading

Dealing with a Foreign Currency Once You Have Moved Abroad Is Easy with these Tips

Posted on August 15, 2013 by Daniel at 5:54 pm

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Relocating regardless of where you are going to is already stressful enough, which is made even more difficult if you add in the challenge of moving abroad and dealing with a new currency. Top that off with different processes, language barriers and a whole new way of life, and you’ll see yourself in a daunting situation. These and many other things to consider, makes it a must to research every aspect of your new life before diving in.

You need to be aware of the many different challenges that you will be facing on a daily basis before leaving the UK. You need to simplify your finances and understand all your money matters, in order to avoid the nightmare of dealing with your finances in a foreign country.

If you intend to send money back to the UK to pay debts and bills, you need to appreciate that there are exchange rate fluctuations. This can mean that your debt ends up costing you more in the long run, which will not help your financial position. Some people choose to keep their UK bank accounts, which can help to pay bills.

Many bills are paid through the bank, which is why a bank account is vital. Setting up a foreign bank account can be a complicated process, and you will need to speak the language before stepping foot inside the bank. Some workers may speak English, however, it can make the process slow and agonising if neither party fully understand.

Choosing the right bank can be daunting, and you will need to ensure that you understand the restrictions and fees that are involved with the account. Not all banks operate the same way, and some ex pats are left out of pocket due to ignorance. There are many pieces of paperwork, and documentation that you will need to open the account and the process can be lengthy.

Some countries insist that you are a resident when applying for a bank account, and there is often a fee for opening the account. Once the account is open you will be issued with a card, which allows you to access the account. Seeking tax advice is essential, as there are often implications to your tax status when you live abroad.

When the pound weakened a few years ago against the Euro it made many people nervous about their money in foreign accounts. This drop significantly reduced the spending power of UK residents who had chosen to move abroad.

As with everything exchange rates can fluctuate in your favour, which is excellent news. Dealing with a foreign currency does not need to be as complicated as you may think, and the easiest thing to do is move your money into the currency you will be using.

You need to consider the future, and attempting to juggle two or more currencies will never work long term. With so much to consider when moving, finances are often pushed aside. However, you need to take the time to ensure that your money is in order and that you understand everything before you move.

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Insights on money, career and trading