Save Money as an Expat? Nah, I’d rather have Fun in the Sun
If you’re living overseas, or just considering the move, you’ve probably thought a lot about your finances. But have you looked into your options when it comes to saving?
If the current economic conditions have taught us anything it’s that life is unpredictable. Circumstances can change so quickly that it’s always good to have a little something put away for a rainy day.
However, a recent survey conducted by Standard Life (and reported on in the Telegraph) showed that many people living the expat life are splashing the cash overseas rather than saving it for retirement or when they return home.
According to the survey, 85 per cent of participants are currently on a higher salary then they were at home, but nearly a quarter don’t save any of their earnings.
Over 20 per cent of the expats questioned stated that they used their disposable income to pay for travel, lifestyle habits and holidays.
The survey looked particularly at expats living in Singapore but the situation is reportedly similar in nations like Saudi Arabia and Hong Kong, countries where lower taxes and higher incomes create larger disposable incomes. But with the cost of living mounting across the globe, and people having to spend more to maintain their style of living, can anyone really afford to be cavalier about their financial futures?
As a representative of Standard Life observed: ‘Singapore is one of the world’s most expensive places to live in, making it easy to fall into the trap of spending more on short-term lifestyle luxuries, the abundance of nearby travel temptations and the commitment of returning home to visit family. This certainly seems to be the case for nearly a quarter of respondents who prioritise lifestyle choices over planning for their future.’
Don’t fall into the expat-trap and be sure to save as much as your monthly salary as you can.
Of course, you shouldn’t deprive yourself or your family of treats or holidays, but it’s important to strike a balance where you’re enjoying living your expat life while also preparing for a happy and secure future.