Starting a personal finance plan as soon as you arrive in the UK as a new immigrant

Financial planning is a necessary enabler to achieve financial health. Although it is recommended for everyone, a good monetary strategy is especially important for new immigrants. Uprooted from the home country and all set to build a new life in a new land, as an immigrant you are certain to face unexpected challenges. Here are some ideas to mitigate your concerns related to money.

Income

Your first priority should be to establish a source of steady income. The UK has an excellent reputation for gainful employment and fair treatment of immigrants. Unlike some of the other developed economies such as Singapore, the UK has a well-defined minimum wage. As per this year’s update all workers aged 25 and over will be expected to earn at least £8.21 per hour. Some regions of the UK are especially conducive for expat employment and have a high concentration of foreign workers. The country is also a great destination for expat entrepreneurship. The UK has consistently been ranked among the top 10 places in the world for starting a new business. Become a diligent worker or an enterprising business starter to ensure your cash flow.

Remittances

A large proportion of migrants to the UK leave their families back home in search of employment. If you are among this group then remittances are likely at the top of your financial to do list. Supporting the family back home is understandably a priority. You should set an amount and frequency for sending remittances. You may also want to minimize the cost of sending remittances by choosing a money transfer service which consistently offers the lowest fees and best rates. Ria Money Transfer can be your partner in helping you optimize and keep track of your remittances.

Savings

Life has a way of throwing unexpected challenges. After paying the bills for your family and yourself the next priority should be to set aside for the future. It helps to have a little something stashed safely away for planned and unforeseen future events. Kids’ higher education, weddings in the family, birth of children, and care for the elderly are only some of your inevitable financial considerations. At some point of time you may want to own a home. Sickness, job loss and other unexpected adversities can be offset to an extent by good financial health. Savings need not be large but they must be regular. Small savings add up over time. Most developing countries offer attractive interest rates to nonresident citizens with a view to attract foreign money. You may also be able to significantly reduce your tax burden through such savings. Explore long term savings plans in your home country, and choose one which fits your needs. A little thrift and frugality can also help propel you toward your economic objectives faster. Put any unexpected windfall or bonus in your savings instead of squandering it over a weekend of lavishness.

Earning capacity

With time you may want to improve your wage rate and income. However, no line of work is without competition. Foreign expats in the UK frequently take up additional part time jobs to supplement their incomes. You can also find avenues to upgrade your skills and level up in your day job. Take one of many free online courses in a domain which interests you. There are few investments of time better than upgrading yourself. It is preferable to set a career path for yourself as soon as you arrive, or even before. The sooner you start, the more you can accomplish. The same applies if you own a business. Identify other product or service lines to diversify into. Explore additional geographies where you can expand your business. Long term success, in profession or business, is rarely achieved without good planning.

Family reunion

After migrating to the UK you are certain to notice stark differences in the quality of life compared to your home country. It is only natural to want the rest of your family to experience a better life as well. Having proof of sufficient finances to support your family in the UK is one of the prerequisites to immigrating them. A solid financial plan activated early on can help you achieve that all-important goal of reuniting with family.