Sunday, September 16, 2012

How to Manage Your Money When Working Overseas

Half Moon Bay

Working overseas can be an excellent opportunity for just about anyone. Not only to learn about new cultures and new ideas. Working overseas can also give the employee significant tax benefits. With the internet, it has become much easier to manage personal finances from overseas. It is essential to properly setup the management of your money while working overseas. Here, are 5 tips on how to manage your money while working overseas.

Local Bank Account

When working overseas, it is essential to have a local bank account. This can be a bank that with headquarters in their country, or a bank with an international presence. Many people rely on direct deposit to get their paychecks, therefore, thinking they do not need an account. If any problems arise or a human is needed, having a local bank will be beneficial.

Foreign Transaction Fees. There are a few credit cards that do not charge a foreign transaction fee. A foreign transaction fee is charged by most credit card companies when a card is used overseas. The typical charge is 3 percent, which can add up quickly. Luckily, there are a handful of credit card companies that offer a card that does not add a foreign transaction fee. This will be a tremendous money saver in the long run.

Online. Every bank or credit card has a website. When working overseas, it is essential to sign up for online bill pay services. This makes paying credit cards and other bills online remarkably easy. Sign up for electronic statements, they will be emailed directly. They are just like any other statement you would receive in the mail. Another great benefit of online services is the ability to communicate. One can log into their credit card account and easily message a representative, since calling may be difficult.

Second Bank Account. Keep a bank account in the United States open, this is a terrific way to transfer money. Western Union and other wire places charge massive fees. There are a lot of banks that allow a bank to bank transfer for free. It would be extremely easy to have a relative or friend deposit money into your account, then initiate a free transfer. The transfers can go both ways, so in addition, the money can be sent home.

Inform them. When going overseas, inform the banks and credit card companies. If a credit card or ATM card is suddenly used in a different location, it may be declined. Many card companies have fraud alerts in place, for example, when someone uses a card 5,000 miles from home. A simple call to the credit card company will help prevent them from freezing the account. It is much easier to do it before leaving, but can be done during the trip if needed.

Working overseas can be an exciting and life changing experience. It is crucial to prepare your finances for your day to day life. Ones financial life and dealings back home should not be neglected either. With the internet, it has become extremely straightforward to manage finances while overseas.

Fran Childers writes about finance, travel & more at

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