21 Sep 2023
A UN migration report stated that about 281 million migrants, accounting for 3.60% of the total global population, live in countries other than their own to earn a living, whose major chunk is spent on their families as they send money back home for financial support.
Since financial compulsions push people to leave their families, they try to do whatever it takes to earn, save and send back more so that their family’s financial issues are addressed.
They, therefore, try to do odd jobs and even multiple jobs at times to fulfil this purpose.
But do you think that doing odd jobs is enough to earn and save more? Or what else do you need to do to increase your earnings, and that too, in a foreign land whose environment you struggle to adjust to, in the beginning, at least, if not in the long term?
Indeed, it takes a lot more than just earning big by doing odd jobs. A key player in this context is how you transfer funds.
This blog will shed light on ways in which you can increase your remittance earnings while you reside in another country as an expatriate.
Well, simply because it does not take much to do so, and besides, you can do it by doing nothing new. Rather, something integral to your routine as an expatriate helps you increase your expatriate earnings.
If you keep transferring money back home to your family now and then, you have multiple chances to increase your expatriate income. Here’s how!
Of course, due to financial compulsions and challenges, you undertake the hardships of an overseas life to earn a living.
And you wish to be compensated in full for the hardships you face, and what better compensation than monetary for which you become an expatriate in the first place? Of course, getting a service that offers the lowest transfer costs, competitive exchange rates, and no hidden charges for a global money transfer would be the best thing you would want as an expat. But where to find one?
Imagine a scenario in which you send $500 to your family back home (remember that it is only a hypothetical scenario). You have two options. You either pay $70, for example, as a fee to the service provider and end up sending $430, in which small deductions are further made mid-way as tax, etc.
The final amount being received is even less than $430. Right?
But, against this, there’s another scenario in which you do not just have to pay any fee at all, allowing you to send the amount as it is without any deductions.
Will the $70 you proverbially paid as fees in the first scenario not be your savings and an additional earning? It indeed is!
It is how you can increase your expatriate earnings. Some of the other important tips in this regard are discussed below.
But first, let’s take a quick look at the volume of global remittances and the number of international migrants.
Let’s now see what tips these migrants can follow to increase their remittance earnings.
Banks automatically filter out when you apply this, and the remainder is the online money transfer companies whose services you can compare. This comparison must be thorough to reach a sound conclusion. You can find several service providers that charge a small fee proportionate to a small percentage of the amount being transferred.
Make sure that you have completely understood how your service provider will charge you for your money transfer back home. In addition to charging fees, many service providers will charge a markup that can lead to a substantial cut on the amount you intend to send.
This is not common among all money transfer service providers and is rather unique to some of the most reputable institutions. These institutions launch different time-bound campaigns in which customers can get several benefits, like getting fee-free transfers alongside entering lucky draws to win exciting prizes like the latest models of cars, bikes, phones, etc.
Some companies keep their currency exchange rates fixed and static, whereas others link those with the ever-fluctuating international markets to keep them alive and competitive. It allows you to initiate a transaction when the rates are in your favour. This certainly adds to your remittance earnings.
Make sure to find a company that has a transparent fee structure because several companies charge you a hidden fee that can lead to a substantial deduction. You are not told in advance about this fee unless after the process is complete so that you cannot avoid paying it.
These are a few tips that you can follow to increase your remittance earnings.
You do not have to look for the points explained above for your online money transfer as all of these and several other features, including speed, safety, 24*7 service access in over 100 countries with around 375,000 payout locations, etc., are integral to and form ACE Money Transfer’s remittance services. So, use ACE’s mobile app or website to send money online to your loved ones from abroad and enjoy several benefits under one roof.
FAQs
What are remittance earnings?
Remittance earnings refer to the funds that an individual sends to their home country, usually a worker in a foreign country sending money back to their families. These transactions can be facilitated through banks, money transfer services, or online platforms. Maximising remittance earnings involves utilising strategies to ensure the sender can transfer more value, possibly through lower fees or better exchange rates.
Why is it essential to maximise remittance earnings?
Maximising remittance earnings is crucial as it enables individuals to send more money to their families or home countries. By optimising remittance earnings, the recipient receives a higher amount due to reduced transaction fees, better exchange rates, or additional benefits offered by the service providers, thus potentially improving the quality of life for the recipients.
How can I find a reliable service provider with lower fees and better exchange rates?
To find a reliable service provider, research and compare different remittance service providers, considering factors like fees, exchange rates, transfer speed, and customer service. Reading customer reviews, consulting comparison websites, and checking the terms and conditions of service providers can also help in making an informed decision. Selecting a provider that offers the best balance of low fees, favourable exchange rates, and reliability is key to maximising remittance earnings.
Can the tips mentioned in the article be applied to any country?
While the tips provided aim to be broadly applicable, there may be variations in the availability, legality, and effectiveness of the strategies depending on the sender's and recipient’s location, local regulations, and the presence of service providers. It is always advisable to refer to local guidelines and consider the specific context of the countries involved when applying these tips.
How can the frequency of sending remittances impact the overall earnings received by the recipient?
The frequency of sending remittances can significantly impact the overall earnings received due to variations in transaction fees and exchange rates over time. By optimising the timing and frequency of the transactions, senders can take advantage of favourable conditions, thus ensuring that recipients receive the maximum amount possible. For instance, consolidating remittances to reduce the number of transactions can minimise cumulative fees, while timing transactions to coincide with favourable exchange rates can increase the value received.
Resources
(Interactive World Migration Report 2022 (iom.int)
(Remittances to Reach $630 billion in 2022 with Record Flows into Ukraine (worldbank.org)
