12 Sep 2024
Did you know that 65% of people with solid financial plans feel financially safe?
As a Ghanaian expat in Germany, you have many expenses, including the monthly money transfer from Germany to Ghana. With extreme financial responsibilities, you should prioritize money management. Keep reading this blog to learn how you can be successful in money management with a top-notch financial plan.
Although the word "financial planning" seems complicated, it isn't. These five pointers may help you improve as a financial planner if you wish to use them effectively.
The initial financial planning phase involves identifying your short—and long-term objectives. This provides investors with a comprehensive understanding of constructing an investing strategy. For instance, you can invest in an equity-oriented retirement fund if you have an aggressive risk tolerance and long-term objectives such as retirement planning.
However, equity funds are not a reliable option for short-term investments. If you have any short-term objectives, you should look at appropriate loan schemes that might assist you in reaching those objectives.
You should break the habit of spending more money than you save. You can begin by cutting back on your current expenditures to succeed financially. No matter how big or little the purchase, be careful to record everything and closely monitor your monthly expenditure. This will enable you to see where your money is being spent and whether these costs can be cut.
You can break the habit of going to restaurants regularly. Alternatively, you can reduce your costs by driving your car everywhere and taking public transportation. If feasible, use an expenditure tracker software to help you determine whether your out-of-pocket spending is more significant than your income. You can send money online to Ghana from Germany to reduce the expensive bank charges.
Everyone close to you may be in good health right now. However, unforeseen circumstances may arise anytime, and you never know when you might want urgent financial assistance. You could have to sell your investments if you don't have an emergency fund. If you want to succeed in financial planning, get an emergency fund and avoid failing at it. A liquid fund can be used to create an emergency fund, protecting your investments during a crisis.
Moreover, as a young individual, there may be times when you attend weekend parties or go out with friends. You should set aside 10% of your income for unrestrained expenses like these to cover these costs. In this manner, you may utilize the fund money to purchase the goods and services you want without touching your investment savings.
To guard against losing your home's belongings in a fire or burglary, renter’s insurance is essential. Carefully read the policy to know exactly what things are mentioned and what is and isn't covered. Disability insurance safeguards your capacity to make money by giving you a reliable income if an illness or disability prevents you from working for a lengthy period.
Moreover, you can seek the unbiased counsel of a fee-only financial planner if you need assistance managing your finances. A fee-only financial adviser may offer guidance that is in your best interest, unlike a commission-based advisor who gets paid when you sign up for the products their firm promotes.
Studies show that most Ghanaians need more funds and are unprepared for retirement. Retirement has difficulties, such as managing medical crises and being more reliant on your kids. Being unprepared for retirement with insufficient money might be challenging.
You have more time to save and invest for retirement the sooner you start your retirement fund. As a result, you can benefit from compound interest, which, over time, can significantly raise the value of your retirement assets. You also get the freedom to modify and reorganize your retirement plan as needed by starting early.
As an expat, you might regularly send money to Ghana from Germany to support your loved ones back home. Transferring money internationally might seem daunting, but it's easy with ACE Money Transfer. Here are some reasons to think about using ACE to send remittances;
ACE frequently runs promotions like fee-free transfers and incentive offers, in addition to having some of the most competitive exchange rates on the market. This indicates that when sending money to loved ones abroad, your money will not be lost in exchange rates and hefty fees.
ACE’s cutting-edge technology completes your transactions swiftly and securely. You may feel at ease knowing you can monitor your transfer at every stage.
Use the mobile app or user-friendly website to send money at any time, anywhere. ACE provides your receiver with various easy payout choices to meet their needs, including cash collection, bank deposit, and mobile wallet transfer.
For any queries or issues you might have, ACE’s amiable and committed customer service team is here to help around the clock. Financial planning is essential to achieve the goals you set for yourself. Amidst your journey, you can befriend ACE Money Transfer, providing you with the most affordable remittance service. ACE Money Transfer has made it a goal to make international money transfers simple and cost-effective for you. ACE delivers exceptional value, security, and convenience while maintaining ease for users. Sign up on ACE Money Transfer today to enjoy your first free online money transfer from Germany to Ghana.
Yes, Ghanaian expats can participate in German pension schemes like Riester or Rürup, provided they meet the eligibility criteria.
Ghanaians in Germany can benefit from the Ghana-Germany double taxation agreement to avoid being taxed twice on the same income.
Yes, expats can claim tax deductions on certain expenses like relocation and professional training, subject to German tax laws.
Most banks in Germany require a local address to open accounts, but some online banks may offer alternatives for expats.
Some organizations offer grants, loans, or financial literacy programs aimed at African migrants for business or education.
References:
https://www.schwab.com/learn/story/5-ways-financial-planning-can-help
