Money will obviously play a significant role in the success of your move, so it makes sense to manage your finances for each aspect of your relocation. You will need to look at aspects such as moving expenses, costs of living, taxes, bank accounts, and more. All of this will need to be funded, so you will have to raise enough money to meet these obligations.
First steps
Unfortunately, starting a new life abroad is not as simple as jumping on a plane, so you should take several months to get your financial situation in order prior to a big move. You should pay off any debts you have accrued in Australia such as personal loans and credit cards as these could increase due to currency fluctuations while you are away. Once you have everything in order, you can begin to look at ways to finance your move, either by saving up or leveraging the assets you already own.
Cut running costs
During the final six months before your move, you should be more stringent with your disposable income and attempt to save money by any means possible. Try to think about your expenses and how far this money could go if you saved funds for use in a new country. Cutting back on credit card usage is also recommended as this will reduce the chances of spending money you do not have frivolously. Analysing your monthly spending and finding at least two notable ways to save is a great way to start.
Bank accounts
Creating bank accounts should be your first port of call when looking at financing a move abroad. Fortunately, there are many banking and financial services organisations that will allow you to open a bank account in Australia and the UK. This is important as it will make it easier for you to access your funds wherever you are in the world. You should also opt for an account that offers favourable exchange rates and forgoes any unnecessary fees. It is better to overestimate how much money you think you will need for the move abroad, so try to at least have funds available for six months of living expenses.
Homeownership
You can use assets such as your home to fund a move, but you will have to decide whether to sell the property entirely or maintain it and rent it out while you are in the UK for a source of income. Tapping into your home’s equity for a new life abroad is recommended, so you may need to refinance your home loan, which involves paying off an existing mortgage and replacing it with another one. Removing funds from a retirement account is also an option as many plans now allow for early withdrawals, which are ideal as quick sources of funding. You can also raid any cash savings you have built up.
Work exchange
Signing up to a lease on your arrival in the UK will require you to pay bills and owe money from day one, which is not ideal when you are finding your feet in a new country. You could instead opt for a work exchange option while you look for a more permanent way to make a living. Work exchange will mean only a small amount of your money will be spent on food and accommodation as you will be able to volunteer and be housed at places such as non-organic farms, B&Bs, hostels, and sailing boats. There are numerous websites that provide online listings for work exchange initiatives in the UK.
Tax advisor
Finally, you will need to find out how your move will impact on financial obligations such as taxes and pensions. Consulting a tax advisor or legal professional will help you to make sense of the often-complex nature of dual country financial arrangements. Falling foul of tax obligations either at home or abroad is very serious, so do not wait until the last minute to sort out your affairs. If you already have a job lined up in the UK, your employer should manage this for you on arrival. While this not a direct means to raising funds, it can eliminate the extremely expensive charges and penalties associated with noncompliance.
Keeping track of all your financial commitments at home and abroad at all times is recommended if you want to raise the money you require before you leave for your new destination, in addition to meeting legal obligations in both countries. Embracing a new life is exhilarating and today’s connected digital world has made it easier than ever to make a new country your home.
