If you're about to make your big move overseas, this guest post by Mint Mocha Musings' partner OFX hits the nail on the head! In fact, I wish we'd had it before our first expat gig in Hong Kong. These are easy expat mistakes to make, but there are also easy solutions to help you avoid unnecessary headaches while you’re away and when you eventually return home! (Um, let's not mention the time we packed Small Person's birth certificate with the storage and had to traipse around China to get a new one!) 1. Banking Blunders Not retaining an address in your home country. If you don’t have a residential address in your home country, it could be hard to maintain your bank account and difficult to re-establish your credit once you make your way home again. Many people change their on-file banking address so correspondence goes to a parent’s house or another relative. This allows you to keep one foot in your home country, even if you get most banking notifications via email. Closing a credit card account in good standing. According to the experts, closing a credit card in good standing could damage your overall credit score. While you don’t have to keep each and every one of your accounts open while you’re living away from home, you should be careful about which ones you decide to close. It's also helpful to have credit cards in your home currency for domestic purchases, even if you have to pay $75 a year to keep to keep it open, it's worth the fee. When you do close multiple accounts, do so one at a time over a period of time. The more accounts you close at once, the more damage you’ll do to your credit score, and the harder it will be to undo that damage. And for the cards that you do decide to keep open? Let your credit card issuers know about your move in advance. This will prevent them thinking suspicious activity is occurring once you start using the cards overseas and abruptly putting a stop on it. (Which trust me, happens a lot!) 2. Health Insurance Hazards Failing to have the appropriate health coverage. Heading overseas, some people end up with too much health coverage and some with too little. Limited health coverage could end up costing you a lot of money because you'll have to pay for all of your medical expenses out-of-pocket. Too much health insurance and you’ll be paying twice for coverage that a government-funded medical system may already provide. Check what kind of coverage your visa or residency status offers and adjust your investment appropriately. You may be covered under yours or your spouses' new job, so check the policy and make sure it covers all family members. Before moving to another country, do your research into expat health insurance plans because foreign nationals often aren’t entitled to subsidised or free health care. Bear in mind that cheaper plans may not always give you the coverage that you need and you may need extra, especially if you’re planning on travelling to developing countries, where the level of healthcare is substandard. In China, we were also with SOS which makes sure you can fly out of the country should you need to in an emergency. For more info check here. 3. Poor Preparation and Research Arriving empty handed. Some expats have learned the hard way (i.e. yours truly)! It’s very expensive to get college transcripts, birth certificates, marriage certificates and other relevant documents, once you’re already overseas. If you’re applying for jobs, purchasing a property, or even renting, make sure you've packed the relevant documentation in your hand luggage, so you don’t have to waste time and energy waiting for it in the mail or potentially travelling to other cities with embassies etc to get what you need. This also stands for renewing visas, where in some countries, you need all sorts of legal documents. Learning the local language on the fly. It may be impossible to become fluent before you go (and just quietly while you're there) but not knowing the local language is definitely not a good reason not to go. Spending a few hours a week learning some basic vocabulary beforehand and during your time there, can be super helpful. 4. Tax Filing Failures Failing to file your taxes at home and abroad. Taxes become more complicated when you’re an expat. You'll need to meet the regulations and requirements of both your home country and your new residence. Asking tax experts for guidance will ensure you don’t incur penalties for improperly reporting your earnings when working abroad. These same experts will also alert you to tax breaks you can take advantage of as an expat. Not reporting foreign bank accounts and investments. In addition to filing your income as an expat, you might also need to file the appropriate forms to report foreign bank accounts and investments to your home country, otherwise, you could rack up substantial penalties. Financial advisors can answer your questions regarding what accounts need to be reported, and how to do it accurately. 5. Monetary Misfortunes Not establishing a reasonable budget. It can be tempting to spend a lot of money in the first few weeks of being an expat as you settle in, but expat life can be unpredictable, so it’s important to spend with caution. Keeping extra money aside for things like your visa, any necessary permits, your rent, lawyer fees, unplanned holidays, transportation and health costs can help make things less stressful in a foreign country. Not factoring in exchange rates. Your cost of living will change, becoming more expensive or (hopefully) cheaper, once you move overseas. When you’re tallying up your estimated monthly expenses, factor in exchange rates. Use OFX’s currency converter, in this blog's side bar and gauge how far you can stretch your money once it's been converted. You can also use the OFX/Clearfx transfer service to quickly send money online without being hit with high bank margins and fees, which we did regularly! For more about that you can read my post here. Here's to a happy expat life! A Few Extra Tips for Success Set aside additional funds in a separate bank account. Make sure this money will be easy to access as soon as you need it, in case of emergency. If you’re planning on starting a new business venture abroad, keep in mind that cultural differences can be blinding. Give yourself some extra financial cushion and don’t assume that what works in one locale will work in another. … [Read more...]
Dear China, Thanks for the Memories!
Dear China, I feel like a bit of a traitor just taking off and leaving you like that but rest assured, while I've reached out to greener (fresher) pastures, you will not be forgotten. I want to thank you for taking me into your arms two and a half years ago when I was wide eyed and let’s face it, more than a little petrified as I stood in the rain, peering up at your famous 1300 year old Pagoda, opposite our new home (the hotel), trying to understand its significance. Your world looked anything but familiar to me, and that was (surprisingly) despite having lived in the oriental harbour city of Hong Kong for four years. I smiled through clenched teeth and fought back tears as I tried to stay calm for my excited but nervous three and a half year old, who was yet to comprehend why her old world had been replaced by this new, raw version of the Orient. Back then it felt like English was rarely spoken, even in the confines of the hotel, a conversation was, at best, challenging. I remember finding that one single foreigner working there and clinging to his words like bees to honey. Outside of the hotel bubble, those early months felt like I was treading water, desperately trying to stay afloat. Routine was everything, yet we had none. A trip to two “international” schools set up for those few expats in town and wealthy Chinese had me anxious when I learned five full days in class was the norm for my Small Person, one of the few Westerners on the block. A trip to my local hairdresser for an attempt at colouring my blonde hair had me in tears. Not because I’m vain (ok, maybe a little) but because it was then I realised I was completely alone and had no clue how to communicate my thoughts to a group of people looking at me like I really was an alien. Our first visa run had me in shock as we were shoved this way and that, poked and prodded in full view of a very inquisitive audience. A bizarre visit to the local doctor who asked me for advice on which drugs I needed and then wanted a photo together! It was all indicative of everything we attempted to do in a bid to set up a life in China, in those early days. Back then, I didn’t realise that while you boast the world’s second biggest economy and churn out much of the world’s goods not to mention the world’s most travellers ….. essentially much of you is still developing, still learning and still adapting to life in the 21st Century. I soon found out that you are a nation full of contradictions. Xi’an may have been your capital for 13 dynasties, but her lack of exposure to the modern world meant for the most part, you were still learning much of what the Western world had already conquered. I learned that despite how far you’ve come, authoritarian rule is still your preferred mode of governing. Censorship is par for the course. A quick Google soon confirmed that, as did watching my television go to black regularly, simply because it was something your government wanted to shield us from. Controls over things that involve people’s safety and livelihoods though seem minimal. Smoking is still in force like it’s the 1970’s… when it comes to the roads, rules are few and far between and riding motorbikes without a helmet, with phone and at least three or four passengers (including children) is completely normal. Pollution during those winter months is literally off the radar, at least north of the Yangtze River. When you walk outside and it smells and tastes like an incinerator and pollution levels are '20 times' the healthy limit, you have no choice but to shrug, put your mask on and get on with it -- as much as your head tells you, it’s a ludicrous way to live (and some locals will tell you to "go for a run, it'll strengthen your lungs")! I’ve learned to strategically avoid those small wet patches of spit that litter the ground; and not to bat an eyelid when I see small (and big people) relieving themselves, mid squat in the middle of a busy footpath. Fast forward almost three years and like a toddler emerging into childhood, I can appreciate you’re changing and developing at a rapid pace, perhaps unparalleled in world history. English doesn’t seem as hard to come by, both spoken and written… but perhaps that’s just because I’ve added a little bit of my own Chinese into the mix to help with our communication. Those things that seemed incredibly hard are still incredibly hard, but perhaps our indifference or constant exposure to it, has made it all the more bearable. They are now just "China moments." A city of nine million that had very few restaurants and bars outside those local watering holes overflowing with spicy noodles and bbq skewers now has an abundance of new hotspots of every flavour on every corner. There is an element of the West weaving its way into society, rightly or wrongly and the nouveau riche are dividing classes like never before. Despite the hairdresser telling me I’ve got "farmers hands" one day and am a little “alien” like the next, as he rifles through my shopping bags to see "what she buys", we have become firm friends. That day I cried, clearly still etched firmly in his mind he tells me, as he bids Small Person and I farewell with bear hugs and promises to visit Australia. Those hairy car rides to school no longer have me in a state of shock…. Frank (the driver) and I have settled into a comfortable daily routine. Every morning, come rain, hail, shine (or snow) he waits downstairs, standing at the car door, ready to greet us with a smiley “Zao Shang Hao” (Good Morning), helps to buckle Small Person in as she squirms and fidgets, and off we roar into the morning chaos... Despite never having spoken a word of English bar “Ok” - he quite possibly knows more about us and vice versa than either party would care to. We know he likes to put on the morning talkback shows in Chinese while he fiddles with his beads all the way to school, weaving in and out of tuk tuks, two wheelers, and overcrowded busses, beeping the horn with gusto. We know that after dropping us off, he’ll usually sneak in a cigarette at the bus stop until he sees me coming back and then does a six point turn in the middle of a crowded school street - traffic banks up, while I wait awkwardly at the side of the road, pretending it’s all completely normal. And it is. We have reached an 'unspoken understanding' and perhaps an appreciation of each other. That's evident when my girl draws him a goodbye picture and we give him some new beads. Then there’s the security guards at the school gate that greet me with a big hello and goodbye every day, proudly in their few English words… and once in an unexpected downpour, run out to the car with me holding an umbrella over my head…yet still won't let me inside the school gates unless my I.D is hanging around my neck. My last week in China was no different to the entire two and a half years… unpredictable and challenging! If nothing else China, you are consistent in that nothing is ever straightforward! A book interview with an American-English teacher in the north of the city; a lunch with school mums from China, America and Brazil at a kitsch Chinese restaurant, overflowing with statues, local red wine, a warm drink made from dates, Peking Duck and spicy noodles. All followed by a twenty minute wait in zero temperatures (outside the school gate) and then a regular school pick up that unexpectedly becomes the end of the school term, closing abruptly due to extreme pollution levels! This also unexpectedly makes it my Small Person’s last day, ever, so I'm forever grateful her teacher has the foresight to run out at the eleventh hour and get her a goodbye cake! Then a farewell night out that ended at a “Gentleman’s Club” which isn’t as risqué as you might think! Curious to see what it was all about…we enter the shiny, new establishment (one of many that has sprung up in our local neighbourhood) all in the name of checking out the "competition!" Chandeliers, leather sofas and karaoke (China’s other love). In the spirit of a 'proper' Chinese night out, we find ourselves agreeing to hit up the microphone with a few tunes. A dozen beers are delivered and then... as an added bonus, we're treated to a line up of suitable men of all 'shapes and sizes' to choose from (including the token 'foreigner' who hails from Kazakstan)!! All for ‘company’ we're told…or as we soon find out in between giggles, a university student to sit amongst our group, make strained conversation, drink our beer, smoke cigarettes and sing the odd Chinese pop song! China, you will forever have me bamboozled by your extremes - from the overwhelming poverty that envelopes you, to the ever-increasing number of Rolls Royces cruising the streets; to the intense effort given to academic education yet lack of life guidance; to the seemingly selfish public acts yet incredible acts of kindness, to the strict censorship but overly flexible road rules; the human trafficking and domestic violence but feeling of peace and safety on the streets, to the emphasis on Guanxi (networking) and family but the inability to lose face…and those layers upon layers of ‘bureaucracy!’ China, both your complex and simple personality traits have made it possible for me to love you, yet loathe you - all in the same breath. But just as you’re changing, I hope that I am too. Still fresh out of your grip, it’s too soon to tell how you've changed me. Only time will tell. One thing’s for sure, you’ve taught me to be more open and tolerant and definitely not to sweat the small stuff. I’ve learned that trying to understand cultural differences, nuances and a country’s history is not always easy but it is the key to understanding a nation and every thread that intertwines to makes up the fabric of your society is to be appreciated. Your spirit and strength in overcoming a recent history of oppression and poverty is admirable. As different as China can at times seem from the world in which we know, and as much as that old mantra, ‘survival of the fittest’ still rings true for many of you….there is no mistaking, you have a nation of people only too willing to show an outsider kindness. And that for me, has counted for a lot. (If only someone had told us what's in the tap water sooner!) ;) It's not goodbye, it's see you later! This is China …. and you’ve stolen a little piece of my heart. … [Read more...]
My Journey: Expatriation to Reinvention… with ‘Limitless Laowai’ – Part 1
"Like it or not, our identity is often inextricably linked to what we do as our profession; as someone who previously worked outside the home, I know what it's like for supporting expat spouses to find themselves struggling when that bit of their lives is suddenly stripped away. That loss of identity, mixed with culture shock and adjustment challenges, can throw supporting spouses completely off kilter...and let's face it, it takes awhile to come up for air and breathe." Recently, I was lucky enough to be interviewed by the amazing founder of Limitless Laowai, Ally Mona, for one of her brilliant podcasts and we had a ball! Ally's a veteran expat, having lived in China for over a decade and her site and regular podcasts are renowned for helping the thousands of new expats coming into China to settle in and find success! We did a two-part interview...the first on 'reinvention'.... yes that old chestnut! You know when you are the spouse who hasn't moved for the job...and all that goes with that new hat you're suddenly wearing? Yes, that! If you're about to make the move to a new country, it might be just what you need to hear. And if you've done anything like it before I'm sure you'll nod along with me in some parts. You can pop over to Limitless Laowai to check it out and have a listen here. There are lots of great interviews, on all sorts of subjects, so you might find one that takes your fancy. It's around 30 minutes, so if you're short on time, you can cut straight to the podcast here.... (Don't be put off by the pause in the middle and the other 'voices' - that's just an advert!) Part 2 is about living in a second tier city in China and how different it is to 1st tier China. Trust me! It is. ;-) Stay tuned for that one too! Cheers, Nicole … [Read more...]