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Introduction
Relocating to Hong Kong is a bold move. If you don’t prepare for it well, you could suffer some serious financial consequences. Often, Expats find it difficult to manage their money between two countries where there are different currencies, economies and costs to consider. Below are some general tips on how to save money as an Expat once you’ve made the move to Hong Kong.
Tips
1. Create a Budget
Plan how you are going to spend your income. Write down a list of all your expenses and make sure that these are paid before spending your money on anything else.
By doing this, you are forced to know where your money is spent, thus providing you with knowledge. It will also force you to not spend your money on unnecessary things, therefore you gain control.
Creating a budget allows you to set priorities. And by doing this, you are able to save towards something in particular, and reach your goals faster.
2. Practice Real Saving
Allocate an amount to put away each month before paying anything else. This way, you can build up a fund for a rainy day, or use it for travelling or furthering your career in terms of studies.
3. Know the Tax Requirements
Understand the taxes you are subjected to. If you’re unsure, get expert financial advice. This way you will be able to know exactly what the tax requirements are and how it affects you.
Stay in-the-know when it comes to finance laws – especially those relating to taxes and investments of your home country. You’re still a citizen of your country, so you’ll still be affected by certain tax laws.
4. Keep Records
Keeping records of your expenses is a good way to track your spending patterns and can help you create a more accurate budget.
Tracking categories can be very useful as it can cast light on how much money you spend in certain areas, for example, clothing, entertainment, or groceries.
5. Compare the Market
The first few weeks (if not months) after moving abroad takes some getting used to. Things may seem complicated and disorganised. But don’t fall for the first offers that come your way, like network and phone providers.
Ask those close to you for their opinions and compare your options. Get help finding the best places to shop for groceries, toiletries and clothes, or you could just look around and compare prices and draw up your own conclusions.
6. DIY
It’s quick, easy and convenient to get someone to do your laundry. And it’s even easier to fall into that trap of buying overly-priced food from restaurants or from expensive take-out places.
The best is to just do it yourself. Wash your own laundry and buy fresh produce from your local supermarket. Cooking for one is expensive; that’s why the freezer is your friend. Cook big pots of food and divide your cooked food into portions to freeze.
7. Use an Offshore Bank Account
The most obvious reason for opening an offshore bank account is to help you manage your monthly transactions. But there are also many tax advantages, thanks to the fact that you’re working in a country different to your country of tax residence, and because your funds are held offshore.
Your offshore account can play an important role in helping you manage your savings and investments in a tax-efficient way. It’s also a great way to stash money while you wait for the exchange rate to move in your favour before converting to your home currency and sending those funds home.
8. Network with other Expats
How could you save money by doing this? Well, by talking to other expats in your position, you’re able to share ideas and tips on money-saving opportunities. You’re also able to gather a huge amount of advice and apply it to your life wherever possible.
9. Work Close to Home
This may not always be possible, but try and work as close to home as possible. You will be able to cut back on a lot of transport costs, if your company doesn’t give you a travel allowance. You won’t just be saving money, but you will also be saving time.
10. Live a Simple Lifestyle
Live within your means. The country you’re now living in may have a higher cost of living than your country of origin, so you may need to make some changes to your lifestyle if you want to save money.
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Additional Information Resources
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