10 hrs ago

Eight Financial Mistakes Indians Should Fix Before Moving Abroad

Moving to another country changes how a person must manage money in India.

Before leaving, they should check whether their bank accounts need to be changed to NRO or NRE accounts.

They should also save enough easily available money for about six months of expenses in the new country.

Planning for foreign currencies can help pay for rent, tuition, healthcare and other costs.

Indian investments should be reviewed rather than left running automatically.

Loans, EMIs, provident fund matters, insurance and nominations also need clear instructions.

People may have tax and reporting duties in both India and their new country.

Experts also suggest arranging help from a trusted person in India when needed.

Finally, families should plan for their financial future over the next 10 to 15 years, not only for the duration of a visa.

Key facts

Emergency fund: Experts recommend accessible funds covering about six months of essential or destination-country living expenses.
Banking status: Resident savings accounts may need to be redesignated, and KYC records updated, when residential status changes.
NRO account: Generally used by NRIs to manage income earned or assets held in India, subject to applicable repatriation rules and limits.
NRE account: Primarily used to hold overseas earnings in India; funds are generally repatriable.
Indian investments: Existing investments, including fixed deposits, mutual funds, equities, property and PPF, should be reviewed before departure.
Tax planning: Residential status, income, assets and destination-country rules can create tax and reporting obligations in both countries.
Long-term horizon: Families are advised to separate their financial timeline from the visa timeline and consider a 10-to-15-year plan.

financialexpress.com · 10 hrs ago