27 Aug 2024
Did you know that Australia hosts 320,300 OFWs and offers them employment in multiple fields? These expats earn in dollars and make a money transfer from Australia to Philippines regularly to send funds to their families back home. These transfers can mess up your financial planning. Keep reading this blog to learn the top financial advice to start your new, fresh life in the best way.
Here are the best financial tips that are necessary for fresh expats starting their lives in Australia.
Try to get smart in calculating losses and gains in investments. Suppose you had $100,000 invested in the markets, which over the last five years have yielded an average yearly return of 6%. Upon completion of five years, the total value of your investment is $133,823. Unfortunately, the market hits a difficult patch and drops 20% the very following day. Your $133,823 is now only worth $107,058 (a $26,765 loss).
Most people will concentrate on the loss, but they won't see that the portfolio has gained $7,058 since the $100,000 initial investment was made five years ago. They would have $105,999 if they had sold at this time and paid capital gains taxes. Even though the return isn't excellent, it's still not a loss. Hence, you should always have a diverse portfolio to gain high returns which will help you to send money to Philippines from Australia.
One of the trickiest aspects of daily expat finance is international banking. Particularly on your initial arrival at a new location. When it comes to daily finances, there are four methods to consider:
this is the most costly choice because money transfer fees and currency exchange rates may drive up the cost.
As an expat, opening a local bank account is a more cost-effective choice. Additionally, it indicates that you are diversifying your assets because you probably also have some money in accounts back home.
Learn complete details on how to open a bank account in Australia as an expat.
To facilitate international banking, certain multinational banks provide products tailored to expatriates.
Manage your money with a fintech company and benefit from the financial technology boom. Transferring your money while on the go is simple because the majority of banking is done online or via an app. Additionally, there might be less latency when transferring funds.
The majority of OFWs successfully and safely live and work abroad, yet there are times when being an expat might put you and your family at further risk. For instance, the rising frequency of infectious diseases restricted access to healthcare and medical personnel to criminal activity such as theft or mugging. When working as an expat, international health insurance will facilitate your access to medical care. If your valuables are stolen or lost, international personal protection will help you keep them safe.
Each country has its own laws governing wills and powers of attorney, and some may not apply to assets located abroad. Everyone must be kept informed.
If an Australian leaves assets to children or relatives living in the Philippines, capital gains tax (CGT) will be applied to the transfer. This may leave you with a big tax burden but perhaps no money to cover the amount owed. The assets might then have to be forcibly disposed of in order to pay the tax. In the Philippines, power of Attorney over your assets is not automatically granted to spouses or family members; instead, a third party will be designated unless this is specifically stated.
Think about diversifying your investments if you want your cash to earn more while you are away. This will also help you send money online to Philippines from Australia more regularly. Here are the two options for you for this purpose.
To balance returns, allocate a portion of your savings to developed or emerging economies. For instance, you might think about investing in a more mature economy like Australia where risk is lower and your finances are less at danger.
By purchasing stock in a firm operating in a different market, you can reduce the risk associated with holding all of your assets in a single currency. Making this kind of investment could help you gain from businesses that are expanding quickly. Get investing guidance and make sure you are aware of the company's location.
As OFW, you have a family dependent on you back in your country. Do not rely on banks to send remittances as they will cost you alot. ACE Money Transfer can help you in sending remittances at a fraction of a cost.
We have some of the best exchange rates available, and we regularly run specials, including fee-free transfers and reward incentives. This means that you get the best value when transferring money to family members in the Philippines.
Your transactions are completed quickly and securely thanks to our state-of-the-art technology. Knowing that you can keep an eye on your transfer at every turn will put you at ease.
Use our easy-to-use website or mobile app to send money whenever and wherever you choose. To suit their preferences, we provide your recipient a variety of simple payout options, such as cash pickup, bank deposit, and mobile wallet transfer.
Financial management is one skill that helps in sorting out the expat life the most. These tips will definitely help you in managing your finances as a newbie in the land of opportunities. Use ACE Money Transfer for online money transfer from Australia to Philippines.
In conclusion, these five smart finance tips provide essential guidance for fresh Filipino expats in Australia, helping them navigate financial challenges and maximize opportunities while abroad. By carefully managing investments, exploring international banking options, securing foreign insurance, and diversifying investments, expats can strengthen their financial foundation and ensure regular remittances to support their families back home in the Philippines.
Utilizing services like ACE Money Transfer for affordable, fast, and secure online money transfer from Australia to Philippines further enhances financial management and peace of mind. Embrace these strategies to thrive financially and enjoy a successful expat experience in Australia.
Use a money transfer service with competitive rates and no hidden fees, like ACE Money Transfer.
Yes, it’s often more cost-effective and helps diversify your financial assets.
Ensure it covers infectious diseases, medical personnel access, and personal protection against theft.
Be aware of capital gains tax and consult a financial advisor to manage potential tax burdens.
Utilize fintech solutions for secure and efficient online money management.
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