How does it work financially when moving to another country
Amid soaring living costs and high inflation rates, many Brits are packing their bags and heading to a foreign country. In fact, according to ONS data, almost 500,000 UK residents emigrate abroad each year.
If you’re thinking about joining them, you might be wondering how you can make the move financially. Here’s what you need to do before you go to get your finances in order.
- Inform your bank
Before you get on the plane, you’ll need to inform your bank that you’re intending to move. After moving, you’ll need to open a bank account in the country you're moving to and potentially look at improving your credit score again as it may be impacted.
- Keep track of your finances
When you’re leaving your home country in pursuit of a better life, it’s important to get your finances sorted before you leave. Many countries won’t let you move there if you don’t have enough money to cover yourself, so it’s important to keep a close eye on your finances in the months – and sometimes even years – leading up to the big move.
To help you see whether moving abroad is a viable option, it’s advantageous to look at your income vs your outgoings to see if there are areas where you can save money. For example, you might want to reduce the number of takeaways you have each month or scale back on fancy coffee.
If you’re not much of a spreadsheet whizz, the good news is that there are plenty of apps and online banking platforms that make budgeting easier.
It’s important to look at moving costs, too. If you’re moving across the world, the cost will be significant. Especially if you’re moving big pieces of furniture or pets!
- Sort your visa
Unfortunately, if you’re planning to work abroad, you’ll need a visa to do so. It’s crucial to thoroughly research the country you want to move to so that you can get all the correct paperwork.
- Pay off your debts
Moving abroad when you have debts in the UK isn’t a wide idea. As debts can impact your credit score negatively, it’s important to pay off as much debt as you can before you leave the country. This will help you maintain transparency with your creditors and help you avoid any unwanted legal complications upon your return.
And if you’ve done all of the above? Pack your suitcase and head for the hills – it’s time to emigrate.
