23 Jan 2024
As an Indian, you might think that the skillset you are taking with you to a developed country like Italy will be enough for your financial stability. Right? Because you think it will help you keep earning a living in Italy to send money online to India from Italy to offer financial support back home – a purpose for which you expatriate in the first place.
But this is hardly the case.
You need to master the skill of financial management for your financial stability in Italy.
A report by the Ministry of External Affairs, Government of India, said that about 203,052 Indians are living in Italy for work because they cannot find sustainable jobs in their native country.
That these Indian migrants are working in Italy to attain financial stability goes without saying. But the question is: can they without mastering financial management?
Well, by the time you reach the end of this blog, you will be better positioned to decide for yourself.
So, let’s begin and unearth financial management, its importance, benefits, and strategies to master it.
Financial management is about streamlining your finances according to a plan you have created. In financial management, you thoroughly consider your income and expenses, your present financial standing, your financial journey, and where you want to go.
After you have thought all of the above through, you then create realistic objectives for the long term as well as for the short term and integrate those into the financial plan you have created.
In short, financial management is about taking stock of your current financial status minus speculations and hopes.
As an Indian migrant working in Italy to earn a living in a bid to support your family back home financially through every money transfer from Italy to India, you cannot emphasize the importance of financial management enough.
Imagine you are toiling in a foreign country to earn a living, but you do not have a financial plan. You do not care about your income and expenses. What will happen?
Well, the least to expect is that you will stand nowhere financially even though you work hard in a foreign country for a long time.
Therefore, you must keep a close eye on your income and expenses, create a financial plan, and live on it. Otherwise, your financial struggles will not bear fruits.
Furthermore, financial management is critically important because while living alone in a foreign country and earning, the temptation to spend money carelessly is hard to resist.
Through financial management, however, you can make critical financial decisions easily, utilize your financial resources appropriately regardless of their quantum, and ensure savings for a secure financial future for yourself and your family.
While financial planning appears to be a simple process that is rooted in simple planning based on your current financial position, it has a few essential elements without which it cannot be executed. Take a look below.
The first element in financial management is planning. After taking stock of your current financial status, you define your financial objectives, identify your current and potential resources, and create a plan that is based on all of them.
The next element in financial management is the budgeting. While creating a budget, you ensure efficiency, reduce waste, identify financial holes causing leaks, and uncover areas where you can save and invest. But remember that it is a technically complex process.
Therefore, look here at some of the best budgeting techniques for migrants abroad.
For financial success, you have to take risks. As a migrant, however, taking risks right away and straight is impermissible. But, on the other hand, you must ensure that you assess risk in different financial areas like savings and investment and manage it accordingly.
If you are not careful and conscious about your small expenses, a tiny leak might implode your entire financial edifice! Therefore, the following financial strategies will help you identify the leaks and plug the holes to avoid financial implosion.
Acknowledging technology in all its manifestations is not enough. Make sure, therefore, to accept and embrace technology that has overshadowed all aspects and areas of life. This will help you utilize technology to your optimal advantage.
In this context, you can use several digital tools for your financial planning and budgeting.
As an Indian migrant working in Italy, you need to understand the financial culture and landscape of Italy instead of India. Learn about the local banking systems' taxation laws and try to comply with the local financial regulations to avoid legal challenges.
As an Indian working in Italy, you send money to India online from Italy to offer financial support. Right? Therefore, while sending funds back home, make sure to explore all the options available to you and select a service provider that offers you the best deals with low fees, market-competitive exchange rates, and so on.
As mentioned earlier, living in a foreign country throws many challenges at you. One of these is the acute temptation to spend carelessly that you struggle to resist unless you have created a budget and ensure that you can live on it.
This comes naturally because, in most developed countries, opening a bank account for migrants is essential. So, open a bank account at a local bank, which will help you streamline your finances and make financial management easier for you.
Most financial transactions are carried out through credit cards in the developed world. Therefore, use your credit card wisely and build your credit history because it will unlock several financial opportunities for you. But beware of online credit card scams!
Never rely on your one bank account for savings because it has never worked, nor will it ever work. Create a separate account and contribute to it regularly for emergencies in the future. It will help you save as well as brace up for financial emergencies.
Never shy away from seeking expert financial advice while trying to master your financial management skills. Because financial management and the elements of it, such as planning and budgeting, are complicated. So, doing it all alone may be problematic for you.
You must explore multiple investment options while you are working and earning in a foreign country. Mostly, people go with investing in property and gold. These are good investment options but not enough. So, explore other options and assess risks and opportunities thoroughly before investing.
Your entire effort underlying your expatriation to Italy from India is centered on offering financial aid back home to your family. For this reason, you send money to India from Italy regularly. So, if you choose ACE Money Transfer for this purpose, it will help you with your financial management rooted in savings as the firm charges a low fee, offers live and market-competitive currency exchange rates, and much more from one window with optimal safety of your funds and transactions.
Financial management is the art of taking stock of your income and expenses in real-time and planning to streamline your financials to meet financial objectives both for the short term and long term. Financial management has to be minus hope and speculation.
Financial management is important because it helps you with financial planning, managing funds, cutting down unnecessary expenses, exploring multiple investment opportunities, focusing on needs, preparing for financial emergencies, and saving for the future.
The essential elements of financial management include planning, budgeting, managing and assessing risks, and setting predefined procedures to carry out your financial activities. However, for all of these elements, expertise is required because they are complicated.
If you master financial management, you will be able to strategize your finances, make informed financial decisions, control your finances tightly, resist the temptation to spend carelessly and on wants, and save for future financial emergencies.
Some of the tips to master your financial management skills include embracing the dazzling technology, understanding the financial landscape of your host country, opening a local bank account, creating a budget, building a credit history, exploring money transfer options, seeking financial advice, savings for emergency and future, and exploring investment options.