5 Financial Tips I Wish I Had Been Told in my First Year as an Expat

Moving abroad as an expat is exciting, but it comes with financial complexities many don't anticipate. It's been two years since I left the world of education and stepped into the universe of finance, and seven years since I first moved to Malaysia. Looking back, I really wish I had the ability to educate my younger self and give that guy a few financial tips.  

There were so many things I was blissfully unaware of before, too many to include in one blog post; so here are the top five things I wish I had fully understood in my first years as an expat, and what every international professional should be considering to help them protect, grow, and future-proof their finances.

The truth is, the expat lifestyle can mask serious financial gaps, gaps that only become visible years later when they're much harder (and more expensive) to fix.

What are common financial considerations for expats in their first year abroad?

New expats are often exposed to these financial considerations: reviewing employer-provided health insurance for coverage gaps, long-term retirement savings awareness when workplace pensions aren't offered, building a 3-6 month emergency fund in relevant currencies, saving and investing in currencies aligned with long-term plans, and establishing systematic currency transfers rather than timing exchange rates.  

1. WHY MUST EXPATS BE PROACTIVE ABOUT RETIREMENT PLANNING?

Here's what catches most expats off guard: many employers in Southeast Asia don't offer workplace pension schemes. The responsibility falls on the individual to plan, save, and invest for their future. Even the countries and employers that do offer schemes, such as the Malaysian EPF (Employees Provident Fund), come with their own pros and cons that need to be properly understood when planning for retirement.

EPF contributions can be valuable, but what happens when you leave Malaysia? How does it integrate with your home country pension? These aren't simple questions.

What are the biggest retirement planning mistakes expats make?

It’s far too easy to get sucked into the expat lifestyle, and many people fall into the trap of disregarding long-term planning simply because life abroad feels temporary. I've seen it happen: people get absorbed in the lifestyle, the travel, the higher disposable income. Retirement planning gets pushed to "next year" repeatedly.

Here are the critical mistakes to avoid:

• Assuming you'll eventually return home and "catch up" on pension contributions

• Not understanding how local schemes like EPF work or what happens to them when you leave

• Failing to calculate what your desired retirement actually costs

• Not accounting for property plans, children's education, or other major future expenses

• Letting high current income create a false sense of long-term security

How can expats plan for retirement effectively while living abroad?

Regardless of whether you plan to stay long-term, switch jobs and explore different countries, or eventually move home, we should reflect on:  

• Where do I ultimately want to retire? (This determines which country's tax rules and pension systems matter most)

• What lifestyle do I want in retirement, and what will it cost? (Be specific, vague goals lead to inadequate savings)

• What are my property plans? (Will you buy back home? Stay abroad?)

• What other significant costs am I planning for? (Children's university, supporting parents, major travel)

The key is starting immediately, even with modest amounts. Someone who invests $500/month from age 30 will be far better positioned than someone who starts with $1,500/month at age 45, simply because of compound growth over time. Early and consistent saving is commonly discussed in financial education as a factor influencing long-term outcomes, although individual results will vary.

2. HOW IMPORTANT IS COMPREHENSIVE HEALTH INSURANCE FOR EXPATS?

Being from the UK, I grew up with the NHS, and regardless of your opinion of it, I now see how much many Brits take it for granted. Once you live abroad, that safety net disappears, and you really do need to pay attention.  

Why do employer-provided health insurance policies often fall short?

Health insurance will usually come as part of your employment package as an expatriate, but how many people actually review how comprehensive their policy is?

I'm fortunate not to have experienced major health issues myself, but I've watched friends discover their coverage was insufficient only when they needed to make a claim. Hospital bills in private facilities can escalate shockingly fast, we're talking tens of thousands of dollars for serious procedures.

Common gaps in employer policies include:

• Low annual limits that seem adequate until you face a serious illness

• Excluded conditions (pre-existing conditions are almost never covered)

• Limited geographical coverage (some policies only work in your host country)

• Inadequate maternity coverage or high co-payments

• No coverage for evacuation or repatriation

What happens to your health insurance when you change jobs as an expat?

This is the critical issue many miss: every time you change employers, you switch onto a new medical policy. Your coverage level changes, and crucially, any conditions you've developed are now considered "pre-existing" and won't be covered by your new employer's plan.

Let's say you're diagnosed with diabetes while working for Company A. You change jobs to Company B two years later. Company B's insurance won't cover your diabetes-related care because it's pre-existing. You're now paying out of pocket for ongoing management of a chronic condition.

How should expats approach health insurance strategically?

Within the early stages of relocating abroad, you should consider:

1. Reviewing your employer policy in detail

• Know exactly what's covered and what isn't

• Check limits on inpatient care, outpatient visits, maternity, mental health, emergency evacuation

• Understand geographical restrictions

2. Comparing your employer policy to international private options

• Even if you don't purchase now, you'll understand what comprehensive coverage looks like

• International policies follow you between jobs and countries

• Pre-existing conditions can be covered if you enrol while healthy

3. Consider portable international coverage as essential protection

• This isn't a luxury for the wealthy; it's financial risk management

• The best time to get international coverage is when you're young and healthy

• Premiums are significantly lower if you start early

3. WHY DO EXPATS NEED MULTI-CURRENCY EMERGENCY FUNDS?

Life abroad comes with its own challenges and unpredictability. Contract changes, visa issues, rental disagreements, medical emergencies back home, the list goes on.

How much should expats keep in emergency funds?

The standard advice of "3-6 months expenses" applies, but expats need additional considerations:

My personal approach:

• 3–6 months of expenses in easily accessible cash

• Cash pots held in multiple relevant currencies (for me: Malaysian Ringgit for daily expenses, British Pounds for repatriation)

• Money kept in instant-access savings accounts so it still generates returns

• Separate "repatriation fund" that could cover flights home and initial settling costs

Why multiple currencies matter: If you face an emergency requiring immediate return home, you don't want to be converting currencies during a crisis when exchange rates might be unfavourable and you're under time pressure.

What emergencies are unique to expat life?

Beyond standard financial emergencies, expats face additional scenarios:

• Sudden contract termination requiring immediate departure

• Visa issues forcing unexpected relocation

• Family emergencies requiring expensive last-minute flights

• Political or economic instability in host country

• Medical evacuation costs not covered by insurance

• Property issues in home country requiring urgent attention

When you live thousands of miles from home, having immediate access to funds in the right currencies is an important risk-management consideration.

4. WHAT CURRENCY SHOULD EXPATS SAVE AND INVEST IN?

When you earn abroad, your financial life fragments across multiple currencies. This creates complexity, but also opportunity if you approach it strategically.

Why does investment currency matter for expats?

One commonly discussed approach is to ensure that the majority, or at least a significant portion, of your wealth grows in the currency most relevant to your long-term plans.

For most UK expats, that means building GBP (British Pound) assets.

For US expats, it means USD (US Dollar) assets.

Why this matters:

Currency-conversion protection: You avoid large conversion losses when you eventually need funds in your base currency. Exchange rates can swing 20-30% over the years you're abroad.

Long-term stability: Building wealth in a stable, widely-accepted currency protects against local currency volatility. Malaysia's Ringgit, for example, has fluctuated significantly against major currencies.

Global investment access: You can invest globally while keeping your base currency consistent, accessing international markets without constant conversion.

Psychological security: There's genuine peace of mind in knowing you're building wealth in the currency you'd rely on if you needed to return home unexpectedly.

5. SHOULD EXPATS TRY TO TIME CURRENCY EXCHANGE RATES?

This deserves its own section because it's one of the most common mistakes I see: expats waiting for the "perfect" exchange rate before transferring money home or making currency conversions.

Spoiler: The perfect rate never comes.

Why is timing currency exchanges a losing strategy?

Currency markets are influenced by countless factors: interest rate decisions, political events, economic data, global crises, market sentiment. Professional traders with sophisticated algorithms struggle to predict currency movements, individual expats have virtually no chance.

Here's what typically happens:

1. You decide to transfer £5,000 home when the rate is 5.50 MYR/GBP  

2. You think "I'll wait until it hits 5.60 to get more pounds"  

3. The rate drops to 5.40  

4. You wait for it to recover  

5. Six months pass, the rate fluctuates between 5.35 and 5.55  

6. Your money sits idle earning minimal returns, missing investment opportunities  

7. You eventually transfer at 5.48, close to where you started, but you've lost six months of potential investment growth

What's the alternative to timing currency exchanges?

Systematic, scheduled transfers reduce currency risk and eliminate emotional decision-making:

Monthly transfers: Set a fixed schedule (e.g., first of every month) and transfer a consistent amount regardless of the exchange rate. This "dollar-cost averaging" approach smooths out volatility over time.

Automatic transfers: Use services that automatically execute transfers on your schedule. This removes the temptation to wait for better rates.

Percentage-based approach: Transfer a fixed percentage of monthly income rather than waiting to accumulate larger amounts.

The benefits:

• You average out exchange rate fluctuations over time

• Your money starts working for you immediately through investment

• You eliminate the stress of monitoring exchange rates

• You build consistent wealth in your target currency

• You avoid the paralysis of waiting for "perfect" conditions

Instead of waiting for a ‘perfect’ rate or navigating opaque pricing, you might find value in implementing a consistent and transparent approach to your international money transfers. Services like Wise operates with a commitment to transparency, showing all fees upfront and using the real exchange rate, the mid-market rate, for conversions. You can establish automated recurring transfers to send money to different countries or move funds between their own currency balances. You can explore these transparent features through our partner link with Wise today.

SUMMARY

Living as an expat is an incredible experience that offers unique opportunities; higher savings rates, international exposure, adventure, and personal growth. I wouldn't trade my seven years in Malaysia for anything.

But these opportunities come with financial responsibilities that differ significantly from domestic employment. The five areas covered here; retirement planning, health insurance, emergency funds, currency strategy, and exchange rate management, form the foundation of sound expat financial planning.

The common thread? Proactivity. Unlike domestic life where many financial protections are automatic or built into employment structures, expat life requires you to actively build your own safety nets and plan your own future.

The good news: starting early makes everything easier and more affordable. The decisions you make in your first year abroad will compound (positively or negatively) throughout your expat journey.

Connect with me, Ryan Long on Linkedin to get more updates from me or email me at ryanlong@melbournecapitalgroup.com if you have any questions settling into your first year as an expat.

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Disclaimer

This article is provided for general educational and informational purposes only and is not intended to constitute, and should not be relied upon as, financial, investment, insurance, tax, legal, or other professional advice. The content does not take into account any individual’s objectives, financial situation, needs, or circumstances.

Any examples, scenarios, or references to financial concepts, products, currencies, strategies, or service providers are illustrative only and do not represent recommendations, endorsements, or opinions on suitability. Past observations, personal experiences, or general market commentary do not guarantee future outcomes.

Readers should not take any action based on the information contained in this article without first seeking advice from appropriately licensed and authorised professionals who can assess their individual circumstances in accordance with applicable laws and regulatory requirements.

Where applicable, any regulated financial advisory, investment, or insurance services are offered separately, subject to client suitability assessments, formal engagement, and the relevant regulatory frameworks. Availability of services may vary by jurisdiction.

Melbourne Capital Group and its representatives do not accept liability for any loss or damage arising from reliance on this article.

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Ryan Long is a Private Wealth Manager at Melbourne Capital Group specialising in expatriate financial planning across Southeast Asia. Having made the transition from professional rugby and a 12-year teaching career to wealth management, Ryan brings a unique perspective to helping international professionals navigate their financial challenges. He has built his practice around holistic financial planning for expats, with personal experience understanding the complexities of international life—from EPF considerations to multi-currency planning. Ryan takes a client-focused approach informed by his background in education, making complex financial concepts accessible to expatriates at all career stages. Connect with him on Linkedin or email him at ryanlong@melbournecapitalgroup.com to get in touch.