Offshore Life and Saving Money: Tips You Can Use
The idea of moving to another country holds a lot of appeal. That’s especially true if there are opportunities to reduce your current expenses and save more money. If that also means the chance to earn more money, that’s all the better.
Perhaps you’re thinking about pulling up stakes and making a different country your home. Have you considered how you can save money and still live comfortably? Here are a few tips to help.
Choose Your New Home Wisely
One main point of making a move is more than likely to improve the quality of your life. A good chunk of that strategy has to do with your financial wellbeing. To that end, you want to do some research before settling on the country you will soon call home.
You want to learn all you can about banking and investing laws. It’s also important to find out how those apply to new arrivals who may be happy living as expatriates in the country or who may eventually seek a path to citizenship. Some basics about the cost of living in particular parts of the nation are also worth investigating.
What does this do for you? It helps to narrow the range of choices to a few that seem to be an ideal fit. Given that laws, culture, and customs will vary quite a bit, it helps to find a place that appeals to your senses and also offers the chance to live comfortably.
Ease Your Tax Burden
One of the key factors in saving money is looking at the tax structure that applies. What sort of taxes would you incur if you chose to live in the country permanently? Consider how the tax laws apply to you if you were to establish your own business or eventually become an employee of an established business.
Depending on the tax structure, you could find that the amount of taxes you pay annually are much lower than what you’re used to at this time. Even if they’re similar or a little higher, weigh that against the benefits the government provides in exchange. For example, you may find that while you pay a little more in taxes, the national health plan provided to everyone – even expatriates who are living in the country – greatly reduces health care expenses. This has the effect of reducing your net expenses overall.
Lower Your General Cost of Living
Another point in favor of living as an expat is a lower cost of living without the need to decrease the standard of that living. You may find that it’s possible to maintain the same general lifestyle for as much as half of what it costs you today.
Consider how the country under consideration compares to your present situation in terms of food, clothing, and housing expenses. Don’t overlook the cost of owning and operating a motor vehicle.
If you should find that living in a given country allows you to have a nice home, access to plenty of nutritional and reasonably-priced food, and all the other necessities of life, then making a move will mean more of your income can go to things.
Establish Interest Bearing Bank Accounts
You don’t have to wait until making a move to establish offshore bank accounts. You can do that now and begin to build nest eggs that can be used later. Time deposit accounts are great for this strategy, as well as other types of savings accounts.
The key is to check out the amount of interest that you can earn on the account balances. Some offshore banks offer sliding scales that allow depositors to earn higher interest rates when the balances exceed certain levels. You may find that those rates are easily superior to what you would earn by keeping the money in banks based in your country of origin.
Diversify Your Investments
Establishing an offshore investment account provides access to opportunities that might be out of the question in a domestic setting. It’s not just the investment laws and regulations at home that make a difference. The nature of the investments found offshore may or may not have counterparts in your domestic setting.
As with all forms of investment, there’s the relationship between risk and return. You’ll find offshore investments that carry less volatility while offering a chance at greater returns than many domestic investments. Choose wisely and you could end up building more wealth over time than you could ever do with your portfolio at home.
Consider Currency Exchange
As part of your investment strategy, consider setting aside funds to exchange in currency trading or exchanging. This is a strategy that involves using the currency of one country to buy the currency of a different country when the exchange is to your advantage. Like most investments, the goal is to buy for less and eventually sell for more.
Certainly, foreign exchange (FOREX) is something you could do at home. What you may not realize is that basing your efforts in an offshore investment account could make the transitions faster and more varied. That’s important when you may need to move fast to achieve the desired result.
Use Your Skill Set in a New Way
Even in a world where telecommuting is more common, not all lines of work can be managed in an online environment. Perhaps that’s true of your job. It’s not the type that you can do from home. What will that mean for your income if you choose to move to an offshore location?
Here’s something to look into closely. Would your skill set work equally well or better if you secured employment that did allow you to work from anywhere in the world with a robust internet connection? Your skill set might fit right in with a number of other jobs that would allow you to work from home. Along with less stress, you might even find that those jobs allow you to generate as much or more income than you do now. Couple that with the reduced living expenses and it’s easier to see how making the move would be good for you.
Start Your Own Freelance Business
Who says that you have to work for someone else? Your skill set could lend itself well to starting your own business. Some of the work you currently do might also be performed as an independent contractor. By knowing your worth, you could set up shop and reach an entirely new clientele that’s exclusively yours.
Do find out what it would take to set yourself up as a contractor or a freelancer in an offshore setting. The tax structure may prove to be much better for you and the country’s laws may pave the way for you to offer your services in a number of neighboring nations while incurring very little expense.
Test the Waters by Opening an Offshore Bank Account
Belize is a top relocation destination for many. Are you wondering what it would be like to move to Belize and make it your new home? Start by setting up an offshore bank account. It’s a great first step to getting a feel for the country and the ease of conducting business there.
Our team at Caye International Bank can help you establish the most appropriate bank accounts and provide other financial services, including financing your new home purchase. Talk with one of our officers today and discover how offshore life in Belize can mean financial comfort and a better quality of life for years to come.