Many expats who live and work in foreign countries still have some financial responsibilities in their home countries. They send money to support their families with expenses like daily needs, education, and healthcare. Sometimes, it is for business transactions, international travel, foreign investments, online purchases, or managing overseas commitments, such as mortgages or other financial obligations.

Irrespective of the reason, managing money across two countries as an expat comes with its challenges. From payment delays to high exchange rates, expensive transaction fees, and local financial regulations, cross-border transactions can be a hassle. However, there are easier ways to manage money across two countries as an expat, and we know those ways.

Also read: Expat banking 101: Opening an account before relocation

Challenges of managing finances across borders

Expats typically face several hurdles when managing money across two countries:

• Currency fluctuations: Exchange rate volatility can affect the value of your earnings and disrupt your financial plans.
• High transaction fees: Traditional banks often charge high fees for international transfers.
• Taxation hassles: You may risk being taxed twice on the same money if you are not mindful.
• Payment delays: Delays in international transfers may affect how quickly you can use your money, which can be frustrating during emergencies

Choosing the right banking option

International transfers are usually not one-size-fits-all. You have various options available to choose from, with each having its merits and demerits. The key is to find an option that is most suitable for you.

• Managing accounts in both countries: Retaining your bank account in your home country with some funds makes it easy to send and receive money in that country. This way, you completely avoid currency conversion and international transaction fees, as well as the associated delays. However, this option only works for expats with a steady financial inflow in their home country.
• International bank accounts: International banks offer global accounts that allow you to send, receive, and hold funds in different currencies. This option is ideal for sending large sums of money and official transactions. Transaction fees can, however, be high, and there are markups on the exchange rates. It might also be difficult. These banks also have strict requirements, and transactions might be slow.
• Fintech solutions: Emerging fintech solutions, such as Grey, are helping expats manage their finances across multiple countries by facilitating seamless international transactions with multicurrency accounts.

Also read: Managing money across countries as an expat: A complete guide

Managing money across countries as an expat

Now that you know your options, here are some strategies you can use.

• Bank accounts: Open international or multi-currency accounts with digital payment platforms like Grey for lower fees and better exchange rates. Keep your home country accounts open, if possible, as they may be useful in the future.
• Currency exchange: Avoid poor exchange services with markups, and monitor exchange rates before converting funds.
• Budgeting: Create a realistic budget that accounts for costs in both your home country and the host country. Track expenses in local currencies. Consider using budgeting apps or spreadsheets.
• Tax planning: Tax rules differ, so clarify your situation to avoid double taxation. Get professional help if needed.
• Emergency Fund: Build an emergency fund that covers three to six months of expenses. This can be particularly helpful during emergencies.

Also read: How to manage multiple currencies as an expatriate with Grey

Managing international transactions with Grey

Managing money across two countries as an expat requires more than just opening a local bank account. It involves planning for exchange rates, taxes, savings, and emergencies while using the right tools to keep costs low. Grey helps expat streamline their finances by offering multicurrency accounts in USD, GBP, and EUR. Users enjoy low transaction fees, swift payment processing, and competitive exchange rates.

Sign up on Grey today to move money across countries easily.

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