13 Aug 2024
Many guests find starting a life in the UK fulfilling as Nepalese immigrants. The path to a better future, a new culture, and the possibility of creating something new is open to everyone. However, that is often easier said than done due to the complications involved in dealing with different financial systems in a new country.
This article provides a detailed roadmap that helps Nepalese expats who have settled, worked, and want to send money to Nepal from UK by making the right choices; to manage their finances and look at their future with confidence.
The United Kingdom has a higher quality of life, however, the price for the goods and services offered may be comparatively higher than that offered in Nepal. Get used to thinking of average expenditures for rent/housing, utilities, food/edible items, transportation, and medical costs. This will help you set a good working budget that you can look at as you plan your expenditure.
To understand the extent of difference, one should consider the structure of the UK tax system which is different from that of Nepal. It is therefore quite important to get to know your tax situation as an expatriate. Currently, taxes within the UK are charged based on income and also the residents within your country. Make sure you understand Pay As You Earn (PAYE) an Income Tax standard deductions system in the United Kingdom.
Numerous products and services are available in the UK financial market including personal accounts, credit cards, invading, and pensions. Investigate these options to determine how they can best help you when it comes to financial planning.
Financial planning here in the United Kingdom does mean having a well-developed financial plan for the future. Here's how to create and manage your expenses effectively.
For some weeks or better for only one week, accurately record your earnings from your salary, allowances, or any other sources and your expenditures such as rent, food, bills, etc. A good example can be the preparation of a household budget where at the end of the year you can compare your expenses with the budget to see how you fared. As for the task of splitting the monthly budget between categories, several applications can assist in this process.
The steps of recording your income and expenditure are to divide the two groups of spending needs namely; the needful expenses such as rent, electricity bill, and food expenses, and the desire-based expenses such as movie and dining out expenses. These help in defining places where you can lower your spending limits.
This involves understanding the differences between needs and wants, hence going for the needs rather than the wants. Modeling your spending indicates the kind of expenses that should be given priority such as house rent, food, and transport. Save any remaining money for the extra expenses that are not crucial after core requirements have been met so you have a substantial amount for making money transfer to Nepal from UK.
Other aspects are to create good spending habits, such as instead of going to restaurants often, cooking at home, using public transport or bicycle to work instead of taking a car or taxi, and engaging in free leisure activities.
Smart saving is a critical aspect that can help those who want to be financially secure in the future:
Knowing what to aim for may help to save more. Design goals for the short-term (Emergency fund) and long-term (retirement or to buy property etc. )
Pay a fixed amount from your checking account to your savings account regularly. This helps to practically enforce the principle of ‘saving first’ before other expenses are met and guarantee regular savings.
Look for information about the high-yield savings accounts available in the UK. These accounts pay you slightly better interest on your savings than regular savings accounts.
The good news is that as a Nepalese expat you will desire to remit money to your relatives in Nepal:
A myriad of money transfer services are designed to facilitate money transfers across borders. All these services and other online money transfer to Nepal from UK services provide competitive exchange rates. Before selecting an international provider, analyze the rates, fees, transfer speed, and customer feedback.
Choose a money transfer service that you can trust and that employs proper technologies in its operations. Choose those who are licensed and regulated by the financial agencies in the United Kingdom, and those that use secure connection protocols such as PCI DSS to protect your monetary data.
Consider how the funds will be most useful to the recipients you have in mind in Nepal. Cash pickup may be safe in some places, but a bank deposit may be more suitable in other places. Both options are available in the majority of money transfer services.
Savings serve as an accumulation of money so that it can grow over a period when you are retired and accumulate enough funds to buy a property.
Probably the biggest thing that beginners must learn is that investing is not always an easy task. It would be useful to gain advice from a competent consultant with background knowledge of the Nepali and UK financial systems. You can also discuss with them about your ability to handle risks to qualify you for an investment.
Start with a small sum and invest more frequently, increasing the sums, as and when your financial position improves. Invest in stocks, bonds, and real estate assets to balance the risks of putting all your capital in one investment option.
The pension system in the UK grants long-term savings. Here's a basic overview:
The State Pension offers a minimum guaranteed retirement income for qualified candidates.
Currently, there are numerous employers in the United Kingdom providing workplace pension schemes. These are perfect for retirement as several employers match the contributions you make towards them.
You can also think about investing in a private pension plan to help support your state pension and company pension (depending on the company you work for).
While building a future in the UK, staying connected to Nepal is important. Thankfully, technology has made it easier than ever to stay in touch with loved ones back home:
Take advantage of free communication apps like Viber and WhatsApp to make voice and video calls to Nepal for free (as long as you have an internet connection).
When sending funds back home, consider using remittance apps like the ACE app. This app offers competitive exchange rates and lower fees compared to traditional money transfer services for smaller transfers.
Building a secure financial future in the UK as a Nepalese expat requires planning and discipline. By understanding the financial landscape, creating a budget, saving consistently, exploring investment options, and utilizing financial products like pensions strategically, you can achieve your financial goals.
Remember, staying connected to Nepal is also important. While send money to Nepal, you should use technology to your advantage for free communication and consider remittance apps like ACE for a convenient and secure way to. Remittances can be made faster and more affordable with the right app such as ACE. With dedication and the right approach, you can secure a bright future for yourself and your loved ones, both in the UK and back in Nepal.
In the UK, for one to budget appropriately, one needs to consider essential expenses to include in the budget such as housing cost, which includes rent; utilities, which include electricity and water bills; food expenses or groceries; traveling expenses; and medical expenses are critical cost components to consider when devising a budget for the United Kingdom.
Savings can be particularly effective to achieve long-term objectives, however, it is always advisable to seek the help of a financial planner and determine your appetite for risks to choose the right investment opportunities.
Workplace pensions in the UK refer to a type of personal pension scheme, which is funded by the employer and/or the employee, where both or either of them make contributions to the pension fund for the employee’s retirement benefits.
Here are some of the time-tested and free methods that people can use to stay in touch with their friends and family in Nepal. Applications that are non-commercial like Viber and WhatsApp are capable of offering free voice and video calls given an internet connection.
