How To Simplify And Contain Expenses On International Relocations
Being a professional athlete and receiving income in another country can be very complicated if you don’t know what to do and where to do it when you move countries. In this article, we delve into some of the nuances that can arise with an overseas situation and how you can handle it easily by following these tips and tricks.
What Exactly Are We Dealing With?
The first thing we have to understand is that there are three different kinds of risks – financial, exchange rate, and political. Our goal will be to minimise these risks. For example, in order to minimise the exchange-rate risk, when making international transactions we should look to open and hold multiple currency accounts.
You should also engage a global payments specialist that can assist you with exchange rates by charging no fees on transfers and providing much more value than your bank.
Political risk can rear its head at any time (just see Russia right now) so when these things occur, having someone to assist you manage your FX movements, look at forward contracts, or simply hold funds in your own local account can be invaluable.
What's my Foreign Exchange risk?
The foreign exchange rate is the service fee required to convert one currency into another. Normal international transactions like bank transfers cost extra because the banks charge a lot to process them. They can also take a fee of up to 5% of your money on their exchange rates. However, these rates can vary between institutions, so you want to make sure you know to speak to a global payments specialist when transacting internationally.
Things To Consider When Sending Money
When you look to move countries, if a new offer has come up, you’ll need to change your current country's currency to the new country's currency. This usually results in a lot of hidden charges that creep up on you with the exchange rate. By planning ahead and using a service that charges no fees, you can keep a large portion of your funds intact, or at the very least be warned about potential fees that could arise.
We hope this post has been helpful to anyone who would like to minimise their expenditures when taking up exciting international contracts. As with any venture, it is important to do your research and have a solid plan moving forward so you can avoid the potential costs of making alterations or unwise decisions based on misinformation.
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