4 Tips for Balancing Your Remittance Payments with Other Expenses and Investments

By Susan Melody

No matter how you slice it, managing your investments can be tough.

This is especially true when you’re juggling major financial commitments to support your family.

And it’s immigrants and expats supporting their families back home that know this all too well.

Just because you’re tasked with providing remittance does not necessarily mean you can’t invest or play the markets, though. For expats working in tech or other high-income fields, it’s simply a matter of budgeting and prioritizing.

In this quick guide, we’ll break down four key tips for giving yourself wiggle room to invest while still ensuring that you don’t skimp on your most pressing expenses and payments.

Save as Much as You Can on Transfers

Arguably the most important aspect of saving on remittance is looking ways to bring down the costs related to the payments themselves.

“There are many ways to transfer funds abroad, but some methods are more costly than others,” notes Lisa Rough of Remitly . “You have to be aware of currency exchange rates, transfer fees, and remittance float.”

When sending money abroad, make sure that you’re relying on a trusted transfer service that’s providing a competitive rate. Traditional transfers and risky, time-consuming manual mail services are the exact opposite of what thrifty expats should do if they want to send money safely and securely.

Play Your Stock Options Carefully

Whether you’ve already dipped your toe into the market or you’re looking at potential options, taking blind risks obviously isn’t a smart move.

Although more stable, vetted options may not have the most eye-popping yields or represent the sexiest companies out there, the fact remains that safe dividend stocks can give you some much-needed peace of mind in the market. When in doubt, newbies should always err on the side of playing it safe.

Set Side Explicit Income for Investing

Perhaps one of the best ways to balance your necessary expenses with additional investments is by having a specific budget set aside for doing so.

This is why understanding discretionary versus disposable income is so important. As soon as you start sacrificing other payments for investments, doing so can quickly result in a downward spiral money-wise.

If you’re regularly putting money away paycheck after paycheck, you’re already way ahead of the curve. The oft-stated stat that a bulk of Americans have little to nothing in their savings account is sobering, but likewise speaks to the dire spending and saving habits of the public at large.

And while choosing a savings account that provides a decent interest rate is a good start, bear in mind that you should strive to leave that money alone if possible. Building your nest egg means having discipline, plain and simple.

Plan for Major Purchases and Expenses Now

Moving homes. New vehicles. Medical procedures.

These massive expenses undoubtedly have the potential to put a dent in our wallets and likewise our remittance payments.

And while some of these things can come out of nowhere, planning for them isn’t out of the realm of possibility if you start thinking about them now. Rather than cast of nagging repairs or injuries aside, start thinking long-term in terms of how you’ll deal with them when they arise.

Trust us: they will happen sooner or later and for budget needs to be ready for them. Remittance obviously represents a top priority for immigrants and expats who need to provide for their families first and foremost. With these tips in mind, you can better balance your other expenses and investments without having to make sacrifices that have an ill effect on those back home.