Living abroad? Here are five financial habits to pick up

For many, moving to a new country is a dream come true. Irrespective of whether the shift is for work or personal reasons, the transition can be challenging in several ways. Cultural changes, less-or-little-known food, and getting used to a new schedule of living can be hard enough. To add to that, regular expenses too at times can be overwhelming. However, the situation need not be as scary as you think. Mindful financial habits can ensure that you are covered against any unexpected financial crisis and can lead a comfortable and happy life. 

Read on to learn about some habits that can ensure financial security when you live abroad.

Save as much as possible
 

This piece of advice holds true for all ages, nationalities, and income groups. Savings are a crucial part of any financial plan and can help you reach your goals with greater ease. The sooner you start saving, the faster you can attain your goals. Your savings can not only bail you out of a financial emergency but also cover basic needs like food and groceries. It can also tackle bigger expenses like travel, home renovation, buying a car, etc. Savings offer a sense of financial security and peace of mind, so cultivate the habit when living abroad.

When you save your money, it is essential to pick a good savings account with a high rate of interest. This will ensure that your money does not sit idle and instead grows with time to beat inflation. An IDFC FIRST Bank NRI Savings Account offers convenient digital access through netbanking and a mobile banking app.

Invest in India
 

A lot of people who settle abroad tend to ignore the potential for growth in India. As one of the fastest-growing economies in the world, investing in India can be a good way for NRIs (non-resident Indians) to ride this economic growth. Moreover, keeping a good mix of domestic and international stocks can offer you an excellent level of diversification. This can help lower investment risk and offer improved returns. 

Start a SIP
 

A Systematic Investment Plan (SIP) is a regular instalment in a mutual fund or stocks. It lets you break up your investment amount into smaller quantities and allows you to invest your money regularly over a period. This makes the process a lot more affordable and easy on the pocket. Starting a SIP is an essential financial habit to adopt when you are living abroad. It will average out the cost of investment, help you plan for your bigger financial goals at a slow and steady pace, and help you be financially disciplined. 

Spend on yourself a little

While you save and plan for your future when living abroad, paying attention to your present is also important. Most people move abroad for better work opportunities. This can sometimes cloud your judgement and come in the way of the smaller joys of life. While the pressure of your job and family’s financial protection are all valid concerns, it is equally vital to allow yourself to spend on the things that make you happy. Of course, it is not advisable to go overboard. But you can easily create a realistic budget that enables you to eat out, travel, purchase non-essential items, etc., once in a while. 

Plan for retirement
 

You may have a job and a fixed salary that keeps you afloat right now. But this income will dry up when you retire. So, it is critical to plan for your retirement well in advance. Retirement planning includes consistent savings and investments to ensure that your corpus beats inflation and stands the test of time. Take a look at your present expenses and ascertain your retirement needs accordingly. This will give you an idea of how to create a retirement plan. Once you have a plan in place, you can adopt suitable financial habits to reach your goal. 

Financial security when living abroad can be extremely vital. Being in a new country can be challenging, as you may not have your friends and family to rely on in an emergency. Moreover, the everyday expenses, insurance costs, travel costs, etc., can be troublesome. But all of these concerns can be addressed with sound financial planning. Try to make good financial habits a part of your daily life, so you can truly enjoy the experience of living in a foreign country without having to worry about your expenses.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.