21 Aug 2023
Out of above 9 million overseas Pakistanis, more than 15,000 live in Ireland, a country famous for its friendly people, modern housing and architecture, the beauty of nature, and dynamic career prospects. Most of the migrants from Pakistan travel abroad to earn a living as they cannot ensure a financially decent living for their families within the limited means they have. Resultantly, they suffer from acute poverty to break away from which they work in foreign lands and send money to Pakistan from Ireland to their families back home.
Where earning a living in a foreign land may be easy, provided you have the necessary education, experience and skills, it is a challenge to resist the temptation to spend as much as you can on leisure and entertainment because the allurements of developed countries are pretty irresistible.
In addition, what pulls you more towards such allurements is that you do not have any financial supervision in terms of having your family around you to keep an eye on your money, earning, and life as a whole.
You enjoy reasonable financial freedom without any questions asked.
In all of this, the one thing that goes at stake is the management of your finances, which depends on your and your family’s financial future.
Not only does your financial future depend on it, but the entire idea of expatriation also revolves around it.
Because if you are not concerned enough about managing your finances in a foreign land, your purpose of going abroad to earn a living will not be served sufficiently.
In such a scenario, you will likely land in financial trouble.
Therefore, it is essential to learn how to prevent yourself from landing in financial trouble.
This blog will walk you through some of the essential tips to manage your finances during your stay abroad.
Before understanding the tips for better personal finance management, let’s first take a look at a few reasons you can have as Pakistani migrants for travelling abroad to support your family financially through a money transfer from Ireland to Pakistan that you carry out regularly.
The following are some of the most common reasons that you can cite for becoming migrants.
Pakistan has a flailing economy which fails to provide for its people. A few short spells of economic stability are quickly followed by long spells of economic uncertainties in which several people lose jobs.
So, those who can manage to travel abroad to escape this uncertainty and find sustainable means of earning.
Political unrest in Pakistan is a constant and leads to financial as well as psychological stress on the majority as they become uncertain about their jobs and livelihoods, etc.
So, to find a peaceful existence in a politically certain environment is all they seek when wanting to travel abroad.
In countries like Pakistan, your career and future largely depend on the education you seek. Where a good quality education, which is rare in Pakistan, can get you a job you want, most people end up seeking an education that offers little help in terms of finding a sound career.
Therefore, people travel to developed countries to seek quality education to ensure a stable career.
Learn about getting scholarship-based study programmes for Pakistani students abroad HERE.
A former deputy governor of the State Bank of Pakistan (SBP) said that the level of misery index (total of inflation and unemployment rates) has risen from 15.2 to 36.8. It is the highest in Pakistan’s history.
These are some of the reasons that prompt Pakistanis to earn a living abroad and support their families back home through online money transfers to Pakistan from Ireland and other countries.
Now let’s get to the essential tips for better personal financial management.
Remember that it is not the quantum of money that helps you in this regard. It is, rather, the following tips that will help you finance a long way.
This is the first and most essential tip to manage your finances. Create a budget based on your income and the monthly expenses you will likely incur to fulfil your needs.
A budget will help you keep an eye on your finances and will also help you track your income and expenses.
Normally people spend first and then save. But it is detrimental to ideal financial management.
Make it a rule of thumb to save from your net income first and then spend from the remainder.
Setting up financial goals both for the short and long term will keep you focused and will motivate you as you inch closer to the completion of these goals. It will also stop you from overspending on things that you hardly need.
You must avoid debts, as repaying them will exhaust you financially. The best way to avoid taking debt is to learn to live within your financial means and health and manage your life according to your income alone.
You normally think that you will save money with one checking account.
Well, it could, at best, be described as a fallacy.
By the time you realise you need to save, you will have exhausted the money from your checking account. So, having a separate savings account and contributing regularly is important. This will also help you better follow the Save First, Spend Later principle.
These tips will help you better manage your finances in a foreign land.
You send money to Pakistan online from Ireland as a migrant, for which you need a money transfer service provider. Right? So, your best bet is ACE Money Transfer which charges a low fee, offers competitive currency exchange rates, safety, a wider network with a global presence and a speed of just 7 seconds to deliver funds to Pakistan from anywhere in the world.
FAQs
What challenges do overseas Pakistanis in Ireland typically face when managing personal finances?
Many overseas Pakistanis in Ireland encounter challenges such as understanding local financial regulations, accessing banking services, remitting money to Pakistan, coping with exchange rate fluctuations, and planning for tax implications both in Ireland and back home.
Are there any specific financial tools or services in Ireland that are tailored for overseas Pakistanis?
Yes, several banks and financial institutions in Ireland offer services tailored to expatriates, including overseas Pakistanis. Some provide multi-currency accounts, favourable remittance rates, and even guidance on navigating the local financial landscape.
How can overseas Pakistanis ensure they are getting favourable exchange rates while sending money back home?
It's essential to regularly compare rates offered by different remittance services, banks, and online platforms. Also, being aware of global economic factors that affect exchange rates and timing your transfers during favourable rate periods can lead to better returns.
Are there tax implications for overseas Pakistanis in Ireland when sending money to Pakistan?
Yes, while the act of sending money might not be taxable, the source of that income in Ireland could be subject to tax. It's crucial for overseas Pakistanis to be aware of the double taxation agreements between Ireland and Pakistan and to seek advice from a tax professional familiar with both jurisdictions.
What's the best approach for saving and investing while living in Ireland for the long term versus a short stay?
For those planning a long-term stay, it's wise to familiarise oneself with local investment opportunities, such as stocks, bonds, or real estate in Ireland, and possibly diversify assets. However, for short-term residents, maintaining liquidity and focusing on short-term savings options might be more suitable to easily transfer funds when needed.
Resources
(The Pakistani Diaspora – PILOT GUIDES)
(GDP (current US$) - Pakistan | Data (worldbank.org)
(GDP per capita (current US$) - Pakistan | Data (worldbank.org)
