A Guide for Foreign-Born Individuals to Manage Their Financial Futures

Many financial, tax, and legal issues arise for those living (or soon to be living) in the United States with a green card or U.S. employment visa. A lack of familiarity with the U.S. tax and legal environment can lead to costly mistakes. A new international tax law complicates cross-border finances. Examples include FATCA law and the Common Reporting Standard (CRS) of the Organisation for Economic Co-operation and Development. Planning cross-border financial transactions presents both opportunities and pitfalls.

It is an excellent opportunity to advance your career and build wealth long-term if you move to the United States. Financial planning spesialists, specializing in financial planning for international clients, can help you avoid many costly mistakes. Foreign nationals living and investing in the United States should consider some critical cross-border financial planning elements.

Invest in an emergency fund

You set aside an emergency fund to cover unexpected expenses. If you lose your job, you may need to pay for necessities like car repairs and medical bills.

It’s best not to touch this money unless you have to. It might be simple for some people to keep their spending accounts separate so they are not tempted to touch them.

A cash reserve is meant to be available at any time. It is also intended to prevent you from relying on debt, such as a credit card or personal loan, assuming you have a good credit history.

It is stressful enough to move to a new country and not have access to resources or a community around you. Having money to use in case of need can prevent even more stress.

Set six-month goals

You will have to consider many expenses when moving to a new country. Among these costs are moving expenses, transportation expenses, and security deposits.

To establish credit, you may not be able to borrow money until you map out your expenses for the next six months.

Check out what you need to settle in your new country before moving. A wise first step is to hire an immigration lawyer or send money back home. As soon as you’ve addressed those needs, move on to the basics like housing, food, and transportation.

It isn’t easy to estimate how much you’ll spend on variables such as food and transportation, but try to find a ballpark figure by searching online.

Plan your budget

As soon as you arrive, you’ll get a better idea of how much things cost every month and any unforeseen expenses (such as car insurance and license fees). To afford the necessities, you need to establish a budget right away.

Managing money well is crucial because many people make a lot of money but don’t know how. When it comes down to it, you will struggle if you can’t make the numbers work. It isn’t difficult to make a budget. Calculate your monthly spending using your take-home pay (after taxes and other deductions like health insurance).

You then break down your spending by categories like food, transportation, and personal care, so you know how much you can spend.

Money Transfer Apps

From your home country, money will probably be sent back and forth. A safe money transfer service is necessary whether you’re transferring money from abroad or sending money to loved ones. Wire transfers are possible, but they can be expensive. Consider using a money transfer app like Remitly instead of potentially breaking your budget.

See how fees differ depending on the payment method (debit or credit cards) and other options, such as add-ons. Remitly, for example, is more affordable than banks or brick-and-mortar services.

Don’t forget to include money transfer fees in your budget. You can plan if you know the exchange rates.