Living abroad comes with incredible opportunities and with them unique financial challenges. As a globally experienced financial adviser specialising in wealth management for expat clients, I’ve seen first-hand how tailored savings strategies can make all the difference in long-term financial wellbeing.
In this guide, we’ll explore how to create a savings plan as an expat, and offer practical, stage-by-stage advice, from your first overseas job to life after retirement.
Why Expats Need a Dedicated Savings Plan
Creating a savings plan is a smart move for anyone, but for expats, it’s absolutely critical. You may face variable incomes, fluctuating currencies, differing tax systems, or lack of access to home-country retirement accounts like ISAs or 401(k)s.
Having a solid savings plan gives you:
Stability in times of uncertainty
Funds for relocation, emergencies, or education
A foundation for long-term investment and retirement goals
Let’s now explore how to build that plan, whatever stage of life you’re in.
Step 1: Understand Your Financial Goals
Before setting aside even a single pound or dollar, clarify your objectives.
Are you saving for a property back home? Funding a child’s international education? Planning an early retirement in Portugal?
Clear financial goals shape your saving habits. A target such as buying a property within five years or retiring early in a low-cost country will define your risk tolerance, savings rate, and investment structure. It’s important to write these goals down and review them regularly to stay motivated and focused.
Your goals will determine: time horizon, risk level, and ideal account types
Short-term goals typically require low-risk savings, like cash accounts or fixed-term deposits. Long-term goals, such as retirement, allow for higher-risk, higher-return investments. Likewise, your account selection (offshore account, pension wrapper, or ISA equivalent) should suit both your location and goals.
A personal audit can reveal overspending or financial blind spots
By reviewing your income, expenses, and current assets, you may discover you’re under-saving or spending more than expected in certain areas. A personal audit helps create a realistic savings plan and can highlight opportunities to trim unnecessary costs or reallocate funds more effectively.
Your goals will determine:
Time horizon (short-term, medium-term, or long-term)
Level of risk you're willing to take
Type of accounts or investments best suited to your needs
If you're unsure where to begin, a quick personal audit of income, expenses, and existing assets can often uncover blind spots.
Step 2: Set a Realistic Monthly Saving Target
A common benchmark is to save at least 20% of your monthly income, but this varies depending on your situation. If you're living in a country with high costs like Singapore or Switzerland, your disposable income may be tighter than in Vietnam or Thailand.
Use this formula as a starting point:
[Total Income – Essential Expenses – Debt Repayment] x 0.20 = Monthly Savings Target
Make sure to set up automatic transfers to your savings account since this ensures consistency and removes the temptation to spend that money. Focus initially on building 3–6 months of living expenses in a separate account, especially important for expats, who may face visa issues or job changes at short notice.
Tips for Every Stage of Life Abroad
Let’s look at savings strategies for different life stages, each with its own challenges and opportunities.
International Students Studying Abroad
While many students focus on coursework, managing educational finances wisely during this stage can lay the groundwork for long-term stability. Studying abroad often involves juggling limited income, unfamiliar banking systems, and high tuition or living costs. However, with the right savings habits, international students can learn to build financial discipline early.
Start with a student-friendly budget that includes savings
Even if you’re working with limited funds, it’s important to get into the habit of saving a small percentage, whether it’s £20 or £100 per month. Build a basic monthly budget that separates needs, wants, and a dedicated savings portion. Many students find the 50/30/20 budgeting rule helpful, adjusted to suit student life.
Open a local bank account to avoid international transaction fees
Foreign transaction and ATM withdrawal fees can quickly eat into your funds. Opening a local bank account (or using a global platform like Revolut or Wise) allows you to receive funds from home, make purchases, and pay rent without excessive conversion charges.
Look for student discounts and low-cost lifestyle alternatives
Many cities offer student rates for transport, groceries, and entertainment. Make it a habit to ask about discounts wherever you go. Cooking at home, buying used textbooks, or using public libraries can save you hundreds over the course of a semester.
Avoid debt traps such as overreliance on credit cards
While a credit card can help build your credit history, be cautious not to overspend. High interest rates can lead to debt spirals that outlast your degree. If you use a credit card, aim to pay off the full balance every month and limit usage to essential expenses.
Build financial literacy alongside your academic education
University is an excellent time to build foundational knowledge in budgeting, saving, and investing. Take advantage of online resources, free workshops, or campus financial aid sessions. Learning how to manage money now will serve you well into your professional and expat years.
Early Career Expats (20s to early 30s)
At this stage, many expats are on their first overseas assignment or freelancing remotely. While income might be modest, your flexibility is a key advantage. Here are some saving tips on how to create a savings plan:
Take advantage of lower living costs if based in emerging markets
Living in countries where rent, food, and transport are more affordable gives you an excellent opportunity to save aggressively early on. Instead of upgrading your lifestyle, consider diverting that cost advantage into savings, this could give you a significant head start on long-term financial goals.
Start building an emergency fund and a basic investment portfolio
At this stage, your first priority is to establish a financial safety net. Once your emergency savings are in place, you can begin investing in low-cost index funds or ETFs, which are ideal for young professionals starting to build long-term wealth.
Use multi-currency digital banks to manage exchange rate risk
Platforms like Wise or Revolut allow you to hold and transfer money in different currencies without incurring high fees. This flexibility helps you manage day-to-day expenses across borders while protecting your income from volatile exchange rates.
Avoid lifestyle inflation, invest instead
As income increases, it’s tempting to upgrade your lifestyle. But redirecting that extra income into investments, especially in your 20s and 30s, can lead to exponential growth thanks to compound interest. Small amounts invested consistently now will have a significant impact later in life.
Mid-Life Expats (Mid-30s to 50s)
This is the stage when expats are often earning more, managing families, and thinking seriously about long-term financial security. In order to prepare yourself in this stage, follow these savings tips on how to create a savings plan:
Allocate savings towards both retirement and children’s education
This is often a dual-pressure stage. Balancing savings for your own retirement and your children's future requires clear prioritisation and disciplined contributions. International education fees can be substantial, so setting up dedicated accounts or education trusts early is wise.
Explore international life insurance and health plans
Without access to a public healthcare system or employer coverage, a single medical event could wipe out years of savings. A comprehensive international health plan and life insurance policy provide peace of mind and financial protection for your family.
Consider global investment platforms or international retirement schemes
At this income level, you may benefit from structured investment platforms that offer tax efficiency, global market access, and multi-currency accounts. For UK expats, pension options like QROPS or SIPPs are worth exploring to preserve and grow your retirement assets abroad.
Adjust your savings targets as your financial situation changes
Your salary, family needs, or living arrangements may shift year to year. Reassessing your budget annually ensures your savings plan remains relevant and effective. This could mean increasing contributions, reallocating investments, or modifying goals based on life events.
Pre-Retirement & Retirement Expats (Late 50s and beyond)
Expats in this stage are often preparing to settle either abroad or back home, and their savings need to reflect those plans. Here are some tips to follow:
Rebalance your portfolio for lower risk and higher liquidity
As retirement nears, it’s prudent to shift from aggressive growth assets to safer, income-generating investments like bonds or dividend-paying equities. Maintaining enough cash for 1–2 years of living expenses adds a further buffer during market fluctuations.
Secure residency or healthcare rights in your country of retirement
Retiring abroad comes with administrative hurdles. Securing permanent residency or long-term visas is essential, as are access to healthcare benefits or insurance schemes. These affect your cost of living and must be planned into your retirement savings target.
Consider estate planning and cross-border tax strategies
Many expats overlook the importance of international estate planning. A Will that’s valid across jurisdictions, a trust structure, or a properly located investment account can help minimise inheritance tax, reduce complications for your heirs, and ensure your legacy is passed on smoothly.
Factor in currency fluctuations when withdrawing retirement income
Currency depreciation can erode your savings if not managed carefully. Holding some of your retirement income in the currency of your spending country, or using currency hedging strategies, can reduce the impact of exchange rate volatility on your lifestyle.
The Role of Currency, Tax and Residency in Your Savings Plan
Currency risk is often overlooked. For instance, if you save in GBP but plan to retire in Thailand, you’re exposed to exchange rate volatility. Diversifying across currencies and holding local accounts can help mitigate this.
Taxation is another critical area. Some countries tax global income; others do not. Make sure you understand:
Double taxation agreements (DTAs): Many countries have agreements that prevent the same income from being taxed twice. Familiarising yourself with these can help you avoid overpaying. For example, the UK has DTAs with over 130 countries, including France, Australia, and the UAE.
Tax residency rules (especially with "183-day" rules): Each country has its own rules on tax residency. If you live more than 183 days in a given country, you may be liable for tax on your worldwide income. Understanding these rules, and how they interact with your home country's tax system, is crucial to avoid penalties.
Inheritance and capital gains tax implications in your country of residence: Even if you're not planning to stay abroad forever, your assets and investments may still be subject to local taxes. Structuring your holdings with the help of a cross-border financial adviser ensures your estate planning is legally sound and tax-efficient.
Working with an expat-focused financial adviser such as Benjamin Sharvell IFA can help ensure your savings plan is not inadvertently undermined by poor tax planning.
Tools and Accounts to Support Your Plan
In the matters of how to create a savings plan, you would need some financial tools to assist you in this endeavour. Depending on your residency and nationality, you may be eligible for:
Offshore Bank Accounts
Offshore accounts let you manage money in multiple currencies, access international investment platforms, and sometimes benefit from tax advantages. They’re especially useful for expats who move frequently or receive income from various sources.
International Pensions (e.g. QROPS, SIPP)
International pensions can help you preserve long-term retirement savings. UK expats, for example, can transfer pensions into QROPS or SIPPs for better control and potentially favourable tax treatment. Many international plans also allow for multi-currency contributions and global portability, perfect for a mobile lifestyle.
Multi-Jurisdictional Investment Platforms with Tax Wrappers
These platforms help you grow your savings while minimising tax liabilities. Wrappers can shield your capital gains or offer deferral benefits until you return home, making them highly effective for medium-to-long-term savings strategies.
Savings Trackers or Budgeting Apps
Apps like YNAB (You Need A Budget), PocketSmith, or MoneyWiz are excellent for managing expenses across multiple countries, currencies, and accounts. Regular tracking keeps you on course and makes it easier to identify areas for improvement.
Using the right tools from the start can keep your savings transparent, accessible, and aligned with your goals.
Build a Plan That Moves With You
To create a savings plan as an expat is to future-proof your lifestyle, wherever life takes you. Your goals will change, currencies will shift, and tax rules will evolve, but a flexible, informed savings plan will keep you grounded.
If you’re not sure where to start or want to ensure your plan is aligned with your international goals, it’s worth speaking with a professional like Benjamin Sharvell IFA. As someone who has guided expats through relocations, career changes, and retirement transitions, I’ve seen how the right savings structure can lead to greater peace of mind.
Need Help Creating a Personalised Savings Plan?
I help expat clients create bespoke financial strategies that align with their goals, lifestyle, and location. Contact us today and let’s have a conversation about how to create a savings plan tailored to your international future.