02 Oct 2023
Many Bangladeshis migrate abroad in search of better opportunities to earn and send money to Bangladesh to their loved ones. But regardless of where they live, people can be impacted by economic uncertainty. When the economy is uncertain, managing one's personal finances becomes difficult for Bangladeshis living abroad.
The growing community of overseas Bangladeshis faces distinctive challenges, particularly in terms of managing personal finances during periods of economic uncertainty. This article serves as a guide to navigating those tumultuous times, providing practical advice and actionable steps tailored for Bangladeshis living abroad.
Proper financial management is the cornerstone of a stable and secure life, more so for those living overseas. It enables individuals to meet their needs, secure their future, and navigate through economic downturns without substantial losses.
Economic uncertainty refers to unpredictable fluctuations in economic factors, such as currency value, inflation rates, and employment levels, impacting individual financial stability. Recognising these variables is crucial for overseas Bangladeshis to secure their financial well-being, ensuring their hard-earned money is safeguarded against economic upheavals.
Even during periods of high global uncertainty, Bangladesh has a proven track record of growth and development. Over the past 20 years, a stable macroeconomic environment, a strong demographic dividend, robust ready-made garment (RMG) exports, resilient remittance inflows, and rapid economic growth have all contributed to this.
The story of development and poverty reduction in Bangladesh is remarkable. 2026, it is expected to be removed from the UN's list of least developed nations (LDC). Based on the $2.15 per day international poverty line (using the 2017 Purchasing Power Parity exchange rate), poverty decreased from 41.9% in 1991 to 13.5% in 2016. Additionally, numerous dimensions of human development outcomes improved.
A drop in overall spending, a rise in unemployment, and ups and downs in stock prices are all possible during periods of economic turbulence. Although experts can't always predict when these things will occur or how drastic the changes may be, they generally concur that transient fluctuations will occur. Consequently, it is crucial to be prepared for them. Follow some guidelines explained below to overcome economic crisis.
It is essential to lay a solid financial foundation in order to manage personal finances successfully during times of economic uncertainty. Here are some crucial actions to think about:
Save some of your money each month to create a fund that can be used to cover unforeseen costs. Save enough money to cover your living expenses for four to six months. You can save your money with ACE Money Transfer; it also provides you with the best ways to send money to Bangladesh online.
Create a thorough budget within your income, spending, and savings objectives. Keep an eye on your spending patterns and pinpoint areas where you can make savings.
Prioritising high-interest debts and making timely payments will help you effectively reduce and manage your Debt. When things are uncertain, stay away from taking on additional Debt.
To reduce potential risks during times of economic uncertainty, it is wise to diversify your sources of income. Here are some tactics to take into account:
Look for opportunities to earn money from several different sources, such as taking on side jobs, working as a freelancer, or opening a small business. Income diversification improves financial stability by reducing reliance on a single source.
To generate passive income, think about investing in various assets, such as stocks, real estate, bonds, or mutual funds. To make wise investment decisions, conduct in-depth research or consult a professional.
Use the power of the internet to investigate ways to make money online, such as freelance work, online tutoring, or e-commerce. The online marketplace offers flexibility and the chance to earn more money.
Keeping close ties to Bangladesh can present opportunities and support during uncertain economic times. Take into account the subsequent actions:
Select reputable remittance companies that provide fair exchange rates and minimal transfer costs. Decide which provider best meets your needs by comparing available options. ACE always tries to meet your needs and provides secured online money transfers to Bangladesh.
In times of economic or commercial downturn, most expats face the challenge of effectively managing their finances to ensure their survival until the market experiences a recovery. In this regard, reliable digital remittance platforms can prove helpful to manage finances effectively and to benefit the families back home simultaneously. Read ahead to learn about the growth, development, and impact of digital money transfers on remittances to Bangladesh.
Examine the financial opportunities in Bangladesh's expanding economy. This might entail making investments in small businesses, stocks, or real estate.
Join national or international groups that support Bangladeshis living abroad. These networks can offer helpful knowledge, job opportunities, and a support network during trying times.
Staying informed and getting expert advice is essential during uncertain economic times. As follows:
Maintain up-to-date knowledge of regional and local political developments, economic trends, and alterations to governmental policies. You can anticipate potential problems and make wise decisions using this knowledge.
Consult with professional financial advisors who only focus on helping clients from abroad. They can check your financial situation, offer related guidance, and assist you in long-term planning.
Bangladeshis living abroad can act proactively to manage their finances during economic uncertainty effectively. People can navigate economic uncertainty with greater assurance by building a solid financial foundation, diversifying their sources of income, keeping in touch with Bangladesh, and staying informed.
Bangladeshis living abroad can weather economic storms and achieve long-term financial stability despite potential obstacles. They need to plan ahead and make wise decisions. Always remember that ensuring your financial well-being requires both seeking professional advice and continuing your education in personal finance. By implementing these tactics, Bangladeshis living abroad can safeguard their families during difficult times and create a secure financial future.
Bottom Line
Overseas Bangladeshis can adeptly manage their finances during economic uncertainty by maintaining a disciplined approach to financial management, diversifying income, managing expenses, utilising financial services, and seeking professional advice. These strategies will not only safeguard them against economic downturns but also facilitate financial growth and stability.
You can create your Plan B by preparing for the worst-case scenario. You might consider meeting with a qualified financial advisor to get more advice on navigating uncertain economic times. They can help you in making wise financial choices so you can make long-term plans. And select ACE for all of your money transfers to Bangladesh.
FAQs
How can Overseas Bangladeshis start creating a budget?
Start by listing all income sources and expenses, then allocate funds appropriately to needs, wants, savings, and investments.
Are investments in stocks safe during economic uncertainty?
While stocks can offer high returns, they also come with risks, especially during economic instability. Diversifying investments and consulting financial advisors are recommended.
How important is having an emergency fund?
An emergency fund is crucial as it acts as a financial safety net during unforeseen situations, preventing debt accumulation and financial strain.
Can Overseas Bangladeshis use online banking securely?
Yes, most online banking platforms employ advanced security measures to protect user information and transactions.
How can one find reliable remittance services?
Researching, reading reviews, and comparing fees and exchange rates of various services can help in finding a reliable remittance service.
