25 Oct 2023
Do you know why Pakistanis leave the country to travel to developed countries like Italy to earn a living? Unemployment and hunger drive thousands of people out of Pakistan to find jobs in many developed countries like Italy. A Tribune report stated that about 150,000 Pakistanis work in Italy and send money to Pakistan from Italy to offer financial aid to their families back home.
After all, financial constraints largely lie at the heart of your expatriation to another country. But did you know that despite earning a reasonable income abroad, you can find yourself in a financial whirlpool if you are oblivious to one thing? Do you have any idea about it? Well, it is your personal finance management.
This blog will shed light on how to manage your finances so that your expatriation phase bears maximum financial fruits for you.
Personal finance is about managing your financial resources like your income, expenses, savings, debts, and investments. It also covers budgeting, your financial plans post-retirement, insurance, and taxes.
Understanding personal finance is critically important for you if you are an expatriate working in another country. In most cases, you are alone in a foreign country. Right? So, in such a scenario, your chances of getting carried away by the allurements of the developed world are high. It can have a deep and negative bearing on your financials.
What do you think about the migrants who have worked abroad for some time, earned a living, supported their families financially and then returned home, never to travel abroad again?
Do you think that they earned big fortunes abroad or got the lotteries?
Or as a Pakistani migrant working in Italy, how can you help your loved ones become financially viable apart from every online money transfer from Italy to Pakistan?
For this, you need to learn the art of managing your finances – and timely!
Let’s now take a look at the different purposes your financial management serves.
Understanding financial management is incomplete without knowing the purposes this practice serves. Below are some of the purposes that financial management serves, which are critically important for you to know.
Financial management helps you attain financial security, which is important. Let’s face it!
Do you think your job abroad will continue for eternity? No. When you lose your job, your income generation cycle comes to a halt, but not your expenses. Right? So, your financial management helps you stay financially afloat in times of financial insecurity.
You travel to Italy as a Pakistani migrant to work and earn a living. Why? Is it to keep supporting your family back home financially as you send money online to Pakistan from Italy regularly or because you have some financial goals to achieve along the way? The answer is obvious. So, financial management helps you achieve those goals.
From a broader perspective, hailing from a financially struggling background becomes synonymous with taking debt you get for different reasons. You struggle to pay your debts off with meagre financial resources, but not if you have mastered the skills of financial management.
Investments for people of humble financial backgrounds are a distant dream. Because investments are a result of savings that are possible only through the management of your finances. Investments serve as a financial backup and cushion for rainy days!
Learn here some simple and practical tips to save money as an expatriate.
You must be wondering by now about what steps are necessary to take to become efficient in financial management. Right?
Here are a few simple steps to take to be good at financial management.
Remember that becoming good at financial management has nothing to do with the quantum of your earnings. It rather rests on the following few steps.
Financial goals vary from person to person. For some, it may include buying a new car or investing in a business, while for others, it may be avoiding a student loan for their children’s education. One financial goal does not demean the other. Therefore, whatever the goal is, make it clear and plan accordingly.
The next step is to create a budget. But remember that creating a budget is not as important as sticking to it. You might find creating a budget easier than sticking to it especially when you are an impulsive buyer. So, create a budget but follow it religiously.
An emergency fund gives you the necessary financial backup to fall back on. But there is a catch! You might think you can save money for emergencies with one bank account, which is normally a checking account. Right? But this never works. So, open a separate bank account and contribute to it regularly.
Start paying off your debts and keep in mind that paying off the bigger debts first does the trick than the normal belief that paying off smaller debts will ease the burden. Why? Because paying off bigger debts first helps you avoid interest rates that come with the principal amount.
Lest you get carried away by some fascinating offers by remittance transfer companies, focus on finding the cheapest way to send money to Pakistan from Italy because it is a regular practice that you do, and not being conscious about savings on your international money transfers can negatively impact your savings and financial management.
You find it pretty fascinating to go to Italy for work or study. But have you ever wanted to know some fascinating facts about Italy? Take a look below.
Surely, these facts about Italy only add to your curiosity to learn more about the country as soon as you set foot on Italian soil.
The core purpose of working in Italy as a Pakistani migrant is to save and secure your future financially. In so doing, if you send money to Pakistan online from Italy with ACE Money Transfer, you will not only get live and competitive exchange rates for a low fee, but you will also deliver funds in Pakistan in just 7 seconds. Yes. You read it right. Your loved ones will get the funds meant for them in a mere 7 seconds, in addition to several other benefits the company offers you!
Management of personal financials refers to how effectively you manage your money both as an individual and as a family. It also means understanding your income and expenses and how you plan to secure your future financially.
Personal financial management is important for you because it helps you manage your finances effectively and also meet your financial goals. These financial goals can include savings, investments, financial preparation for emergencies, and post-retirement financial backup.
Personal financial management gives you financial security, helps you achieve financial goals, improves your credit score, helps you pay off debts, protects against inflation shocks, and enables you to save for your future.
You need to start budgeting and stick to it, make savings, utilise your savings by investing in different areas, manage your debts and insurance, and make financial plans after you have retired.
As a Pakistani migrant working in Italy, you can get a relatively higher minimum wage, take holidays, get social security, enjoy an excellent work-life balance, get workplace flexibility, and find multiple job opportunities in several professional fields.
Pakistanis in Italy (Searching for belonging on foreign shores (tribune.com.pk)