Can you believe the 1st Quarter of 2016 is almost over? In January, I gave everyone living a Global Lifestyle a few tips for doing a financial checkup for 2016…here are few more tips to keep you on track for 2016:
1. Review your current relationships with all your Financial Providers. Are they suitable for your global lifestyle? Do they cover all of your current and future cross-border financial needs? When shopping for a financial provider, make sure you have the necessary documentation available for opening a bank account in your new host country (i.e. passport, visa, lease agreement, letter from employer), and have a list of pertinent questions to help you choose a new bank, including customer service capabilities, account opening process for foreigners, fees for international transactions, daily ATM and Point of Sales (POS) limits, joint accounts for spouses, mobile and online banking languages and operating system requirements (i.e. is there an English version that supports MAC and PC), and the process for receiving ATM/Debit cards (will you receive a card on the spot, or will they need to send it to you in the mail?)
2. Always keep a supply of cash on hand in the local currency as well as a mix of other easily convertible currencies such as the U.S. dollar, Euro, Yen and the Pound Sterling to use for emergencies.
3. Will you need credit in your new host foreign country and as a foreigner will you be able to obtain credit in the local currency? If you anticipate having credit needs, what are the requirements/restrictions for foreigners/non-residents to apply for credit and what are the consequences for non-repayment and late payments (some countries have centralized credit bureaus that create a “black mark” against you in the country, possibly barring you from employment, housing and leaving the country. In some countries, not paying your debts can lead to criminal charges and jail time).
4. Be clear about how you are getting your compensation delivered (i.e. split payroll), and in what currency. Is this still a good option? Is it time to revisit? Also don’t forget to account for other salary differences in your local country (i.e. in most countries outside the U.S., they are paid a salary monthly – this could be a major adjustment if you are used to getting paid bi-weekly or bi-monthly). Also are there other employment/labor contract provisions that can impact salary/payment/reimbursement terms.