You know you should put something aside for your future.
You know it's important to be in control of your finances.
But... you are an expat (or a global citizen) living in Asia and you are not sure how to get started.
You are not alone.
This post will guide you through a checklist on important elements you should cross out before taking the first step.
1 Do you have a rainy-day fund?
Covid-19, salary cuts, getting fired or hit by a delivery motorbike...
Living in Asia is full of uncertainties and we should be financially prepared for them. That's why it is paramount to have a designated account JUST for emergencies.
How big should your pot be?
First of all, you need to know what your NECESSARY monthly expenses are. These are the expenses that, no matter what, you still need to pay each month i.e. housing, food, medical expenses, etc.

Then, you can follow the next guideline to define how many months of expenses you should have in that emergency fund:
3-4 months: if no one else depends on your income
4-6 months: if you have a partner
6+ months: if you have financial dependents
2 Do you know where your money goes?
Don’t make the mistake of saving or investing only what is left at the end of each month. We have all made this mistake at some point, and you will find that there are many months where nothing is left.
Reverse this by defining a % of your income that will go toward your goals (retirement, saving for a property, etc.) and invest it as soon as you receive it. The remaining will be the budget you have for your lifestyle. By doing this simple trick, you are already ahead of 92% of the population – this may be a made-up statistic but this is definitely a game-changer.

3 Are you looking for a solution aligned with your goals?
If you consider yourself a global citizen, then you should live like one, travel like one, eat like one, and BANK like one.
This means looking for accounts/solutions that fit your global status.
For example, if you understand the importance of having a retirement account but you have no idea where retirement will be in 15/20/30 years from now – like most expats - then an international retirement account makes sense. You need investments that will follow you across the globe, regardless of where you are living and what your nationality is.
As long as you have covered the first two steps (building an emergency fund and controlling your cash-flow) then you are ready to pull the trigger.
Click this link if you want to receive a FREE PDF that explains the benefits of starting to invest early.
Schedule a time to talk to the Millennial Expat Financial Planner.
Comments