Instances when Money Transfer Could Come in Handy when Working Abroad
Mar 17, 2020
Money transfers can come in handy in so many cases when working abroad that it would be difficult to list them all. People often take up residence in a foreign country when they've been having some difficulty finding a job. Once they're there, they begin wiring a portion of their paycheck back to their home country on a regular basis.
Those who get paid weekly may figure out how much money they're going to need for essentials like food and rent. Anything extra left at the end of the week can then be wired home to support a family living outside of their host nation. This has been popular among guest workers from the Philippines who live in the United States or Singapore, and it's quickly becoming popular with people from South Asia who work in technical or support fields that are in demand on an international scale.
Students are among the most enthusiastic adopters of this process. A student might end up traveling to a country and taking up residence there. Once they do, they'll end up working a part time job and sending any money they save back home.
The information technology field in the United States has a large percentage of foreign workers in it, who are also learning needed skills that they'll take back with them once they're done with their training period. Over time, these workers are also often able to save up enough money to pay for more than just their tuition. This is especially true of anyone who is able to get approved for any sort of work-study program.
For instance, students from Pakistan who are majoring in computer science in the United States may apply for a program where they'll work as part-time system administrators or developers. Once they've completed a certain number of credit hours, they'll be entitled to increase the number of hours of paid work they do each week.
Eventually, these kinds of programs can enable a student to more than cover expenses so they'll be able to save at least some portion of their paycheck each week. Whenever a student saves over a certain goal, he or she can send money from the U.S. to Pakistan where their family will be able to take delivery of it. Due to differences in the exchange rates between nations, this kind of plan can be very attractive even for those who are exclusively working a part time job.
In fact, some people have used them to open their own businesses.
Starting a Business Using Money Transfers
Students who've worked in the United States for a time might walk away with the skills they need to start their own business once they return home. They'll also have a decent nest egg waiting for them once they arrive.
The cost of doing business in Pakistan, India and Bangladesh is much lower than it is in the United States. As a result, students from these countries might be in the best position to turn their newfound skills into a profit-making enterprise.
Some people have elected to deposit all money they wire in from another country into a specific account, which then starts to accrue interest while they're working in their host country. Once they return, the money could have grown by at least a few percentage points. Once again, the difference in exchange rates is definitely on the side of anyone who does this.
Other individuals have looked to invest their money into slightly more lucrative funds, which is a good idea for anyone who wants to start a business. However, those who do a money transfer into these accounts will want to keep an eye on the amount of risk they can incur as a result of any financial activities.
Fortunately, money transfer itself doesn't pose much of a risk due to the excellent security protocols in place.
Saving Money in a Growth Fund
Wire transfers are protected by certain insurance policies. Those who wire money into an investment account or even a standard savings or checking account are encouraged to read the terms of service policy fully before they put any money into it.
Keep in mind that stocks and other investment products can actually go down in value over time, but certain types of growth funds like CD accounts never will. That means students and others who have to wire money to South Asia have many safe options if they're looking at trying to grow part of their nest egg in the process.
No matter what reason you might have to wire money, there are plenty of ways to do it. Look over the plans carefully and then find something that works for you and fits in with your budget.